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CONTENTS
EDITOR Gp Capt R Vijayakumar ﴾Retd﴿, VSM
READERSHIP OUTREACH Gp Capt Dr R Venkataraman ﴾Retd﴿
Sundar R Vakeeswari M DESIGN D Rajaram, Tayub Refai MADRAS MANAGEMENT ASSOCIATION Management Center, New No.240 Pathari Road, ﴾Off Anna Salai﴿, Chennai 600 006 Ph:044‐2829 1133 / Email:mma@mmachennai.org | mandate@mmachennai.org | www.facebook.com/mmachennai
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EDITORIAL
Gp Capt R Vijayakumar (Retd), VSM
Some Lessons Learnt the Hard Way
C
ybersecurity is in the spotlight again as
Director General of Police, Cyber Crime Wing, TN,
various
target
delivered the keynote address and shared his
governments and businesses. There is no
perspective on the cyber security initiatives in the state.
room
threat
I am delighted to present an article on the theme in this
landscape has shifted and attackers have become more
issue with embedded videos of the seminar. Please
sophisticated!
read on and watch the video.
actors for
Over
increasingly
complacency: 6,00,000
The
cyberattacks
were
reported in the first half of 2021 (per data from CERT). With most of the staff still in work-from-home mode, enterprises need to seriously weigh in security considerations. The adoption of IoT devices in our daily
We now have all the ingredients
lives as well as business operations has provided a new
to create an ecosystem for
avenue for cyber intrusions; not all IoT systems are
entrepreneurship to thrive. The
secured with robust authentication and vulnerability
introduction of the
management. There is also a shift in how hackers target
entrepreneurship mindset
individuals—moving from laptops to mobiles. In this
curriculum in schools has
context, MMA in association with KAS and DiSAI organised a seminar on “Recent Trends in Cyber Crimes” on 23rd May 2022 to provide insights on the
shown significant improvement in academic and life outcomes.
present state of cyber security in the country. The BUSINESS MANDATE
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Don’t Be a Job Seeker, Be a Job Giver!
Inflation
Indian start-up unicorns’ average annual growth
Inflation has suddenly become a major problem in
rate is higher than those in the United States, UK and
virtually all countries. What is surprising now is that
other countries. Start-ups in India continue to create
advanced economies are also recording higher levels
value
but
of inflation: the annual consumer price inflation is 8.5%
unfortunately a spate of governance issues have
in the US, 7.5% in the Eurozone and 7% in the UK.
recently surfaced. These are mostly related to
Emerging markets and developing countries (including
transactions, creative accounting and violations. An
Asian countries) are recording a higher rate of inflation,
obvious question is whether such disruptions and
reaching over 7%. The RBI must contain the risk of a
sustainability are at odds. Sustainability is about the
worst fallout involving ripple effects. There is a critical
bottom-line focus while disruption is often growth
and urgent need to revisit the fiscal policy and think
centric (it could involve period of capital burn). One
of innovative measures to augment revenues in such a
wonders if the endless ‘burn’ can result in super
way that inflationary connotations are minimized and
profits.
non-inflationary factors are increased.
despite
the
pandemic-led
slowdown,
It may, however, create capital depletion,
It is also
soaring valuation and temptation to cross the line of
important that a global coordination is required to
ethics. It is not easy for founders or anyone else to
overcome this collective problem now faced by various
change their nature. However, a combination of self-
countries. This may require developed and wealthy
awareness and mentoring could help. Between our
countries to assume a disproportionate amount of
obsession with unicorns and glorifying people running
responsibility in this regard.
small stalls for survival is the middle ground in entrepreneurship. This space is sparsely occupied in
Sri Lanka: Pearl Drop to Tear Drop
mass
The debt-ridden island nation is coming to grips
entrepreneurs is more pronounced now than ever
with harsh realities. Sri Lanka announced a pre-emptive
before. I strongly believe that now is the time to
default on its foreign debt totalling to $51 billion
harmonize all the intent, insights and thought
—fresh on the heels of its decision to increase interest
leadership into a framework that inspires concerted
rates—in a bid to tighten monetary policy. Several cargo
action. We now have all the ingredients to create an
ships are still anchored in international waters as the
ecosystem
The
country struggles to find dollars for payment to clear
mindset
shipments of fuel and other essentials. The result is a
significant
shortage of petrol, diesel and kerosene. Food prices
improvement in academic and life outcomes. In this
have sky rocketed, hospitals are running out of drugs,
context, MMA conducts a number of Entrepreneurship
what happens in Sri Lanka matter way beyond its
Development Programs at various schools through its
borders. Global markets see a bellwether for a raft of
CSR initiative. These programs are very popular and
potential defaults across the developing world as
kindle
countries face a growing post-pandemic debt burden.
India
today.
The
for
introduction curriculum
the
for
producing
entrepreneurship
of in
need
the
thrive.
entrepreneurship
schools
interest
to
has
of
shown
students
towards
entrepreneurship. A small initiative by MMA, but worth it! 6
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Building enough trust and creditability with the
up its health system. The WHO has recommended 44.5
people and convincing them that the pain they are
skilled healthcare workers per 10,000 people; Indian
going through is not permanent will be challenging to
health workforce is less than 20 for 10,000. Watching
the political establishment of any country. Is the Sri
out for any signs of a new threat needs real-time
Lankan financial crisis a chance for Indian tea sellers
monitoring. The data would enable governments to
to corner new markets? That’s easier said done!
bring the required restrictions. It is better to be well
Sri Lanka has always beaten India in the tea business.
India
earns
lower
revenues
than
its
neighbours from overseas tea market despite being the second largest producer globally. As Sri Lanka reels
prepared and proactive. We will have only ourselves to blame if we don’t ramp up our hospital infrastructure at the earliest.
The Indian Badminton Team
from its economic crisis, can India corner its market share? South Indian orthodox tea may benefit in the short-term but the industry is in for a long haul.
The Indian badminton men’s team winning the Thomas Cup is a reminder of the other proud moment in sports: Kapil Dev and his team lifting the 1983
In this regard, MMA organized a discussion on the
Cricket World Cup. Self-belief and team-work powered
theme “Sri Lanka: from Pearl Drop to Tear Drop” with
the Indians to their maiden Thomas Cup win. This is
experts providing thought provoking insights. I am
the beginning of the youth dividend in Indian sports.
delighted to present the article on the discussion in
Our
this issue with embedded videos.
Congratulations Team India!
Inventors’ Dilemma
badminton
team
has
made
us
proud!
As always we would be happy to hear your views,
Investment bubbles all over the world are bursting. Bitcoin has lost 55% of its peak price; Netflix is down
comments and suggestions. Stay safe and stay healthy!
73%; and Zoom video communications have fallen 84% from its peak. Small budget retail investors who were nudged into buying cryptos by the big financial investors, actors and other celebrities, etc., learnt a very old investment lesson: Financial genius is before the fall! It is important for millennials and boomers to understand that while return on capital is important, the return of capital is even more important!
The Next Pandemic? A fourth wave looks unlikely—the strains and variants after Delta look benign—but the pandemic has been surfacing almost every 10 years; India must ramp BUSINESS MANDATE
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MMA‐KAS in partnership with Digital Security Association of India ﴾DiSAI﴿ organised a discussion with Mr V Rajendran, Chairman, DiSAI; Mr Amaraesh Pujari, IPS, Director General of Police, Cyber Crime Wing, TN; and Mr Shiva Balaji, Cyber Security Professional and Founder CEO, Bitlock Online Solution Pvt Ltd. The following are excerpts from the talk by Mr Amaraesh Pujari.
W
e live in an age where the success of our
unfortunate that these tidal waves of cybercrimes that
economy, our internal security, our defence
threaten to engulf us go unabated. Fortunately, we
and indeed the entire gamut of our
didn't, as yet, have had a situation faced by a nuclear
existence relies on the power of IT and how efficiently
reactor in Natanz in Iran: the Stuxnet worm stopped
we are able to harness the incredible and huge potential
the nuclear reactor operating there. But we should be
of IT resources. The efficient harnessing of IT resources
alive to the threat of weaponisation of the malware.
has transformed the destiny of our nation, making
What we are facing today is primarily a wave of cyber
India one of the most notable economic, technological
financial frauds. We have a national portal to report
and
But
cybercrimes; not that every crime cyber gets reported,
unfortunately the same IT resources also make us
but a bulk of them get reported. Even with less than
hugely vulnerable to a whole plethora of risks. This is
100 percent reporting of the cybercrimes, every day we
military
powers
in
the
world
today.
because the entire edifice of IT infrastructure was not designed so much for security, but mainly for ease of operation, efficiency and interoperability—the driving forces behind the evolution of the huge globally
In India, cybercriminals make 12
interconnected cyber space, within which the nations,
crores every day. That makes it
industries, companies and individuals function. Every
to more than 4,000 crores every
day, our critical infrastructure comes in the crosshairs
year. 80 websites are hacked
of inimical forces. Every day, thousands of our innocent
every day.
people become unfortunate victims to cyber criminals who are out there, just to make a fast buck. It is quite 10
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get
2,000
to
3,000
cases
reported.
In
India,
went to a restaurant with three of her student friends.
cybercriminals make 12 crores every day. That makes
She was short of just 500 rupees. One student had a
it to more than 4,000 crores every year. 80 websites
brilliant idea and said, “Let's download a loan app and
are hacked every day. It is estimated that 2 lakh mobile
get a thousand rupee loan.” They downloaded the app
numbers are active in our country that are out to scam
and immediately thousand rupees got credited to her
the people. Ransomware is making its presence felt.
account. They paid the bill and came out. Immediately,
You would have heard the case of attack on Oil India
a phone call came asking her to pay ten thousand
quite recently. More and more such cases are coming
rupees within one hour, though the time given in the
to our notice. This is just a snapshot of the gravity of
app was three days. When she protested, the caller
the situation that stares us. Let me touch a few recent
threatened to dial all the people on her contact list and
trends which keep us busy in the crime detection and
morph her profile photo. How do you think this
prevention.
happened? While downloading the app, we say, ‘yes, yes,’ to all the permissions that are asked for. We hand
The Loan Apps
over our entire life, on a platter, to the fraudster. She
Taking advantage of the downturn of the economic
didn't believe it at first, but when she started getting
situation of many people due to the pandemic, loan
phone calls from her relatives and friends that
apps have mushroomed in our Play store. These apps
somebody was telling lot of negative things about her
provide you with a loan of a few thousand rupees with
and her family, she got alarmed and informed her dad.
exorbitant interest rates. One is not bothered about the
After that, we solved the case. This is the menace of the
interest rate when one needs a few thousand rupees
loan apps, which are all illegal. We have busted 79 such
immediately. The daughter of one of our family friends
apps so far. We wrote to Google and we have taken
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Another very good initiative is the Cybercrime Coordination Centre. This is the main coordination centre that operates under GOI’s Ministry of Home Affairs.
them out, but more loan apps keep mushrooming.
issue a new ATM card, they will request you to click a link. Again, within minutes of your clicking the link,
Phishing Links
your money will be gone.
Quite often, we get SMS or email informing us that we have won crores of rupees in a lottery. If you click
Job Frauds and Other Scams
their links or start engaging with them, you will get
Then there are a lot of job frauds. Fraudsters exploit
conned. The most prominent one among them is getting
the unemployment scenario. People are bombarded
a phone call. They deliberately target rural areas where
with fake job offers. The catch is, you have to deposit
awareness is not much. But in my service, I have seen
some money and that money never returns. Another
that even the best of educated people have been
kind of a scam that we are noticing is the search engine
conned, including those in the banking and IT
scam. Suppose you get into a problem during
industry. You may get a phone call, supposedly from
netbanking, you try to reach the helpline of a bank
a banker that a 2 lakhs cheque issued by you, is going
through Google. It could be a fake helpline where you
to be presented. The fraudster might get your name
reveal all your sensitive details and get conned. We
from TrueCaller. You say that you have not given the
come across many cases of social media impersonation.
cheque. The fraudster says, “Then you can lodge a
A professor known to me called me frantically one day
complaint at the police station. Or else, I will send you
saying that he just transferred Rs 40,000 to his Vice
a link. It will be either—Yes or No, that is: pass my
Chancellor because the latter had met with an accident
cheque or don't pass my cheque.” The fraudster puts
and he got a message, “I am not in a position to speak.
pressure, and you click the link and select the ‘No’
Please transfer 40,000 rupees. I am in this hospital. I
option. Within ten minutes, Rs 40,000 may get debited
will return the money in two days after I get
from your account. We see also see a lot of cases asking
discharged.” The professor requested me to put in a
people to click a KYC link, provide details for KYC or
word to the hospital authorities for his treatment. I said
update the Aadhar number. If people don’t respond,
I will be very happy to do so but asked him if he was
they threaten that the account might be closed. To
sure that his Vice Chancellor sent him the message. The
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If your complaint is non‐ financial in nature, for example, somebody is morphing your photo and misusing it, then you can upload it in the NCCRP por‐ tal...
professor said that the message carried the VC’s profile photo. “Anyone can put your photo as their profile photo.” He later realised that his VC was hale and healthy and that he was defrauded of Rs 40,000 by a scamster.
1930: The Magical Number Government of India has taken a lot of steps. A National Critical Information Infrastructure Protection Centre has been created under 17A of the IT Act to safeguard our critical infrastructure that houses
Sometimes, you may get a call that there is an IT
companies and their offices.
Another very good
refund for you and you have to enter some details by
initiative is the Cybercrime Coordination Centre. This
downloading a new app that the IT department has
is the main coordination centre that operates under
come out with. When you download that app, whatever
GOI’s Ministry of Home Affairs. Now, a National Cyber
you enter gets mirrored to the fraudster including the
Crime Reporting portal has been created. Anybody
password that you enter. Another type of scam is that
affected by cybercrime should upload the details in this
you may get a message that Rs 40,000 got deposited in
portal: https://www.cybercrime.gov.in/
your account. You may wonder who gave you this money. Within minutes, you will get a call from a person that he wrongly deposited the money in your account, maybe because he entered one digit wrongly. As he needs the money urgently, he will request you to transfer that money to his account. As a good citizen, you also transfer that money from your account, only to realise that Rs 40,000 was never deposited, the message was fake and you have transferred from your account balance. Therefore, please be very careful. Never download suspicious apps or suspicious QR codes or click any unknown links. You have to save yourself. You don't have to believe the unknown caller. 14
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Most importantly, one cyber helpline number has been created. It is 1930. You may take a lot of precautions, but in spite of that, suppose you fall victim to one of the cyber fraudsters and lose some money, is it gone forever? If you report to 1930, the money lost by you can be frozen by the banks and returned to you eventually. Just like we talk of the golden hour in case of medical emergencies, here also, we have the golden hour. If you report within one hour of the cybercrime, there are very high chances that the siphoned off money will be safely returned to you. Please store this number in your mobile as Cyber Crime Emergency Helpline and share this widely with people in your circle. Your 1930
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call will land in our control room which is connected to the banks. Then a message goes to the concerned bank to freeze that amount. Your transaction will be frozen and with the help of the bank, you will get back your money.
Banks prefer that fraudulent transactions
should be reported to them within 72 hours, but don't wait for 72 hours. The criminal can encash your money through some ATM or other means. Then it becomes a cost prohibitive exercise to send a team to another state because most of the criminals are located remotely. So the best way is to reach us is within one hour of the occurrence.
Command Centre. I invite you to visit it sometime. We have opened one cybercrime police station in each of the districts. Tamil Nadu was the first state in the country to open a dedicated cybercrime police station in each district. Going a step ahead, we are opening a cyber cell in each police station. If your complaint is non-financial in nature, for example, somebody is morphing your photo and misusing it, then you can upload it in the NCCRP portal: www.cybercrime.gov.in. It will reach the concerned police station. The KavalanSOS app also has a facility to report cybercrimes. I urge all of you to download this app because it is very useful. It has dozens of citizen services that the Tamil Nadu Police offers to the citizens. In fact, the necessity to go to a police station is more or less obviated, if you have this kind of app in your mobile phone. This is not only for your safety but it is a crime prevention tool. For example, you may want to verify your domestic help that you have hired or your tenant. You want to buy a vehicle and check if was involved in a crime case or not.
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to the extent that ideally I would have liked it. Much more needs to be done. I believe that banks have a central role in preventing financial cybercrimes. Only with the cooperation of banks, these crimes can be prevented. Here are a few suggestions: • In any money debit messages, banks can include the wordings- ‘If you suspect any fraud, please call cybercrime helpline number 1930.’ • Many financial crimes happen on weekends.
In Tamil Nadu, we have opened a State Cyber
JUNE
Are we really able to control cybercrimes? Well, not
• The KYC system needs to be made stronger.
State Cyber Command Centre
All these can be done through the app.
What more needs to be done?
Banks may tighten slacks, if any, normally found during the weekends. • When an account is opened with the bank, banks should give the customers a white list consisting of three or four numbers, only through which, the banks will contact them. Other numbers are to be considered as ‘unauthorised’ or ‘fraudulent.’ • People call with fictitious numbers. The telephone
companies
can
work
with
IT
departments and ensure that the KYC number of the person is also displayed with the call. • When OTP is sent, add details such as your OTP for withdrawal of Rs 10,000 is….. and so on. Some banks are doing this and this may be practised by all banks. • TrueCaller must be updated with all scamster numbers, so that their calls are marked as ‘scamster.’ • Using
CSR
funding,
banks
must
build
awareness against cybercrimes. • Catch people young. Make cyber security as part of the school syllabus.
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Mobile Safety
M
r Shiva Balaji, cyber security professional, shared ps on
the police. If you yield to sextor onists, you can never come
using the mobile phone carefully:
out of the threats. Mul ple students have contacted me to
• In India, there are many people who do not even know how to use an ATM card, especially in rural areas. They need to be educated.
• Banks must look at possible technical issues and review if the protocols in place are adequate. For instance, we could
• Remember, more than you using the mobile phone, the phone is using you more.
demonstrate a case of a bank account being opened in a person’s name and debit card issued, without the person being aware of it.
• Be wary of your mobile camera during usage. People carry the mobile to all the places including bathrooms. With the camera enabled, there are chances of the phone being hacked, in which case, not only the one who carries the phone but also those who are near that person may also be watched or under surveillance.
• Be careful before giving various permissions to apps. Review the permissions. • Do not download any app by clicking a link. Download apps only from Play Store. • If you suspect that your phone is being hacked, format it to
• Hackers manage to give fake ad to Google and by the me,
factory se ngs. But first, you have to back up of your
Google realises about it, it could be 10 to 12 hours, by
photos and contacts. Do not take back up of apps. A er
which me a lot of damage can be done.
forma ng, download the apps that you need from Play
• Check for fake websites. There will be some difference between the original and fake. Validate every website and look closely for any spelling mistakes or odd things in the website.
cases, please confide in your parents and report them to 18
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Store only. This will reduce any risk associated with the frad‐ ulent apps. • There are many job offer scams. The scamsters not just look for money but also for informa on. Do not share your
• There are many cases of sextor on. If you come cross such
JUNE
bail them out as they have been hacked during video calls.
sensi ve informa on to unauthorised or suspicious persons.
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MMA‐KAS‐IIMC organised a discussion on the book “The Art of Management” written by Mr D Shivakumar, Group Executive President, Aditya Birla Group. The author was in conversation with Mr R Ramaraj, Founder, Sify Technologies Pvt Ltd., and Ms Gowri Mukherjee, CEO and Co‐Founder, CreditMantri.
Gowri: Is management really an art? I have always felt that it is a little bit of a science.
management and not the science of management. Ramaraj: There is enough precedence, especially in Indian
in
philosophy, about codifying values. It is expected that businesses will go up and come down. If you are expecting it to come down, then you're a pessimist, but if you're prepared for it, then you are a true leader. Often during good times, we don't know why we are good. When something drastic happens, we say, ‘Oh God, why me?’ That preparedness makes us think it's a science.
management. There is no management without either
Fair argument. Every company prescribes a set of
context or culture. The elements of management of a
values. Every country does that. Values are, according
business, which relate to consumer, competition and
to me, things you would die to uphold. Here's the catch
partnership, are all a matter of art. There is no science
with values. How do people experience values in a
to it. You shake hands with some people whom you
company or an institution? They experience it through
think you won't shake hands with but you shake. Indian
the behaviour of the senior managers. That behaviour
employees reveal their increment and salary to
is variable and completely contextual. Somebody gets
everybody. It is in our culture. When a company is going
up, has a bad day and he's grumpy. Why do we ask the
through stress, even the best manager can't motivate
boss’ secretary, “What's the mood of the boss today?”
the team, because, fundamentally people are worried
If management is science, we wouldn't do that. You tend
about their job or kids’ education. I can apply all the
to favour people who come and see you regularly. You
disciplines of management and I would still have failed.
tend not to favour people who are out of sight. It has
So the context is very important. The timing is also very
nothing to do with impact. These are human failings
important, and that's why I call this the art of
and human nature. One has to recognize this. I'm not
Shiv: Not true. I thought about this for a long time. There are many aspects of management which are quantitative, for example, anything to do with data or process or supply chain where the hard numbers are there.
Context
and
culture
are
important
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saying this is wrong or right, but that's what I have
which end of the pitch you are in.” He said, “That's not
seen.
the problem. When the wind comes at you at ten degree
Gowri: You mentioned the book is broken into three parts:
temperature, the biggest challenge is to keep your
managing oneself, managing teams and then managing business. Can you walk us through that structure?
eyelids open for the two seconds after the ball is released and it goes past you. If I do not train to do that,
Managing yourself is possibly the core of having a
I'm in trouble. When I bat in Auckland, I have to keep
successful life or a successful career. Nothing is more
my eyes open all the time, so that I could see the ball.”
important than doing that. You can take any set of
Then he added, “Melbourne.” When he goes out to bat
examples – from politics, sports or business. People
in Melbourne, he stares at the sight screen wide eyed.
from similar backgrounds and similar achievement in
I asked him why he did that and he replied, “In
school or college diverge out. The divergence invariably goes back to the ability to manage very well.
Tendulkar is a very good example. His ability to manage himself is outstanding. I once remember having dinner with Sachin in Delhi when we were doing one of
Once you get the privilege of managing a team, and then lead a business, how do you
the campaigns. I asked Sachin, “Which is the most
think about business and look
difficult ground to bat on?” Sachin thought about it for
ahead? A lot of people in the
a minute and said, “Shiv. Auckland in New Zealand.” I
past world used to look back
asked why? He said, “There are gaps in the stadium and
and extrapolate.
the wind comes.” Having an engineering frame of mind, I said, “The ball comes slower or faster depending on 22
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Melbourne, the light is too bright. If I don't stare at the
By and large, most of the
sight screen and absorb that whiteness, I will never pick
sports are team‐oriented. One
the red ball.” Only somebody who has really thought
guy cannot win a match. Finally,
about the game deeply can really do that. These are
a sport teaches you to respect
things which you manage yourself. You understand it,
rules and regulations and
codify it and make it a craft. Managing yourself is
institutional authority.
absolutely critical. There are many elements to it —managing time, ambition and relationship within the organisation. The second is managing a team. Managing a team is managing horizontally also—managing your peer group, managing somebody else who's out there, working in a matrix with you. Once you get the privilege of managing a team, and then lead a business, how do you think about business and look ahead? A lot of people in the past world used to look back and extrapolate. I've done that as a brand manager. I have stood up in Hindustan Lever and said, “Inflation is six percent. The category will grow four percent. My brand will grow five percent. Our revenue growth is 11 percent.” By and large, you would be right. Today that formula doesn't work. Extrapolating the past is possibly the silliest way of managing the future.
of the match or the 90 minutes, whatever it is. Second, a sport teaches you to assess and judge competition. You tend to look for weaknesses in the opponent to say, what can I drive away from? What can I do differently? Third, a sport teaches you teamwork. Cricket is an exception where individual brilliance can see you through. By and large, most of the sports are teamoriented. One guy cannot win a match. Finally, a sport teaches you to respect rules and regulations and institutional authority. I used to have a philosophy —never argue against the umpire. In any game, the umpire or referee is the king. I've always thought that a sport teaches people how to lose.
Yes. It teaches you how to lose gracefully. I admire
Sports seem to be a passion for you. What games did you play? How did sports influence you professionally and personally?
the combination of Nadal Djokovic and Roger Federer. When one of them loses, the other always says, “The other guy played well. One of us had to lose; sad it was
I grew up in a boarding school. So (playing) a sport
me today.” They have deep respect for each other. The
was almost compulsory. One day, I had to play
other is the old Australian cricket team. Whenever they
basketball, one day, play cricket and another day,
lost, they would say, “We lost to a better team on this
hockey. I had to play things that I hated too. What a
day. Our day will come tomorrow. No problem. We'll
sport does or at least what it taught me was four
come back.” They never offered excuses or blamed
things.
anything or anybody. Losing gracefully and accepting
First, it teaches you preparation. Whether you're going to bat or play a tennis match or play the role of a fullback or goalkeeper in hockey, it mentally prepares
it is just as important as winning. You have not interviewed startup entrepreneurs—people from the younger startup ecosystem. Why is that?
you for something. You have to focus on those 30 overs BUSINESS MANDATE
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2022
There will be two types of com‐ panies... One is the legacy
from yesterday. Now, you have to make up your mind
companies, which will be there
as to which type of company you belong to. You cannot
for 60 or 70 years or more like the Tatas, Birlas, Mahindras and
be in a second stage or new age company and say, “I want the security of the first stage company.” If you go back by 30 years, there was another stage company
Reliances of the world. Then
called the government. Those days, people would say,
there'll be another bunch of
the government had all the protection and discourage
companies that will have a very
those who join private enterprises. Now, nobody talks
short life span, may be 0 to 20
about the government, because the government cannot
years.
develop jobs anymore. They can have regulatory jobs, the armed forces, police and so on. In a digital world, there is no role for the government to create physical
There are entrepreneurs in my batch of 21, like,
jobs. Those days are over. We are now back to a similar
Aarti Kelshikar, CVL Srinivas, Harsha Bhogle, Renuka
debate—between private enterprise and startups.
Ramnath and Vikas Khanna.
When we hire, we look for people with drive and ambition. Ambition may be bad too. How does one test oneself to know when it is bad and when it is good?
Ramaraj: The entrepreneurs that you've chosen in a way
reflect enterprises, profit, profitability and all the stuff that we were taught as good management principles. Today, all the heroes that we worship and invest after are the ones who are very ambitious, drive high valuation and great teams, taking high risk. They have very different models of business that we see as disruptive. Are there any lessons to be learned from them?
There are many big lessons. Over the past six months, I met at least 100 to 150 digital startup owners —first to learn and then to see what this model is all about. The average age of a company in the year 1935 was 90 years. Today, it is anything between 12 and 18. There will be two types of companies in a future world. One is the legacy companies, which will be there for 60 or 70 years or more like the Tatas, Birlas, Mahindras and Reliances of the world. Then there'll be another bunch of companies that will have a very short life span, may be 0 to 20 years. Either, they will die, or they'll get bought out or they'll merge. The first set of company will go slow and steady and give you stability. You can learn the basics there. The second type of companies is high-risk, high-return type. The adrenaline is pumping all the time. Tomorrow is a different day 24
JUNE
2022
Ambition is good because it raises the bar consistently. I am not an advocate of saying, “Don't be ambitious.” We are all ambitious for our kids, our teams and our companies. But once ambition becomes a very naked exercise where you wear it on your sleeve and it's all about yourself without the collective element of anybody else, then that's a serious problem. Someone like Geoffrey Boycott was deeply ambitious about his score. His team members didn’t like him and there are videos of some of them deliberately running Boycott out. When your ambition is so clouded that you don't want to think of the team, then that hurts you. CK Prahalad said, in the context of companies, ambition must be higher than their resources. If you think about yourself in a very individualistic way, you must have what I call divine dissatisfaction to say, “I want to be a better version of myself tomorrow.” You can do that only if you constantly get feedback and reflect. You can’t ask for promotion in your company because your 2002 batch mate got promoted in Colgate. You should
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do what's right in your company. Thus there are many
Twenty years ago, retail was a
shades of ambition. Talking about ambition is not the
hot sector. Then mobility
same as committing in a disciplined manner to achieve
became a hot sector. Now for
it.
the new age companies,
In my father's and our generation, we all were hired to retire. Now, if somebody stays for more than three years, they think it's something wrong with their ability to move or they are not wanted. We have to learn continuously. There are many lessons of learning from your bosses and peers. If this trend of people leaving within two or three years continues, are we going to move ahead with a bunch of inexperienced people?
technology is a hot sector.
Difficult question. We reflect and thought on this a lot. The consumer is changing far faster. David Ogilvy said many years ago that the consumer isn’t a moron; she's your wife. It's so true. We see a bunch of young people whose thoughts are very different on the future, compared to other people. Secondly, technology is impacting change dramatically. Whenever I look at trends, I always ask myself: Does this trend impact the individual? Does it impact the family? Does it impact the society? If it impacts all three, you can be sure that it will impact your business. That's my simple checklist. The employees react to what they see. Twenty years ago, retail was a hot sector. Then mobility became a hot sector. Now for the new age companies, technology is a hot sector. Tomorrow, it will be Metaverse.
So
employees consistently want to ride that next wave and think, ‘Why should I get stuck in an old age industry, with old age bosses who don't teach me anything?’
Tomorrow, it will be Metaverse.
and IIMs. Even coaches, we outsource. There's nothing of development to an individual which is happening in the organisation today. Then, why do you expect the employee to stay with you? I have this conversation with many CEOs. I can tell you that everybody is frustrated with it but nobody is able to offer anything. Gowri: Is your definition of ‘on-the-job training,’ learning
from bosses and peers through interactions or going through a structured learning program in the premises?
We used to call it 10-20-70 model. On-the-job training in the past would be 70% of the capability building. Let me give you an example. In Unilever, every time I had to think of advertising and how to do better, I would send a note to my guru Michael in London. He would send back the note saying, “Not good enough, Shiv. Rewrite.” I have rewritten, at least 10 to 20 times to sharpen the message to the consumer and the advertising. That’s on the job training. Michael took interest in ensuring that the next generation of marketing people in Unilever learnt to practice very
A very important shift has happened in learning in
well. You don't have that today. Everybody is in a rush.
the last 10 years. On the job training used to be a big
When I give feedback to my team, people tell me that
value proposition of every company. People would say,
they have not received such feedback. If I don't do that,
“Come join us. We will teach you. We will grow you into
I am hurting them. That's my point of view.
a general manager.” I have not seen one interview of
Ramaraj: If you give adverse feedback, most people start
any CEO in the last five years about on the job training. It’s gone. As leaders and companies, we've outsourced
leaving. They have opportunities and so they leave, saying you criticise their work. It's not taken as helping one grow. Is that something that we will see more?
development plans to management institutes like ISBs BUSINESS MANDATE
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Feedback is the breakfast of champions. You can
of control and profit centre. He studied organisations
easily make out the guys who say, “Give me feedback
deeply. It was the supply chain era. Philip Kotler came
and I’ll take it.” They take it on the chin and try to be a
in and said that the consumer is the king. That is when
better version of themselves the next morning. There
the marketing era started. In the late 80s, Michael Porter
are some people who, when you give them feedback,
came in and said—of course, without using the word
try to defend or project. If you truly want to give
—we work in an ecosystem: suppliers, buyers,
feedback as a boss, you have to be a few miles ahead
regulators, government, etc. The skills needed in these
of your team members in thinking, in framing the
three defining points of time are very different. I believe
problem and structurally thinking about the issues.
that the biggest and cheapest way of learning is to
Many bosses are not. Do people in your team and your
watch people in your organisation. You learn a lot more
industry respect you? If they do, then they will take
by just watching people—how they react and conduct
your feedback. Second, be consistent. You call out good
themselves, than anything else.
and bad as it is. Then people will see that over a period
Ramaraj: In recruiting, how do we know who is the right
of time. If you are only attacking the person and not the issue, then that is not feedback anymore. It's
When I look for people, I look for communication
murder.
skills, drive, energy, etc. I also ask them for their biggest
Gowri: There is a rush to acquire new skills. Yes. There is a mad rush to hire people. Companies must diligently recruit people and put in the framework very rightly. Drucker was the first guy who talked about the concepts of organisation, business, manager, span
26
JUNE
2022
candidate, especially the younger people? We often know only from hindsight.
failure in life.
If people are not pushing their
boundaries, they are not failing. In a fast changing world, you need self-reflection, self-awareness and resilience to come out of failures.
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Do the best management skills come from experience or from theories and case studies?
It is a combina on of both. You cannot
what is right for the company, in the context of the employee.
In the post‐
pandemic world, the heart is going to come
If you want to be relevant in today's world,
by offering employees flexibility.
you need to learn a lot. I speak to people
implement something if you don't know
from outside my industry. I have done this
the concept or the underlying principles. First level is the principles and body of knowledge. The next level is experience
How do you keep yourself effective and productive?
How can employees balance their ambitions and their ability to achieve those ambitions?
and understanding of what other industries
consistently over many years. If something works well in some industry, by and large, it may work for other industries too, from
We tend to invest in the stars in
my experience. The ability to stay relevant
organisa ons.
fundamental
to my people is what really drives me. In
mistake. I am not saying we don't need
managing me, the trick is to manage your
Is there anything called the Heart of Management?
stars. We need a Tendulkar but only in the
dead me like si ng in a flight or a car. You
context of the team. If you take a room, the
can do a lot of things at that me. The
There is. A prac sing manager in every
ceiling represents the stars. The average
second I would say to young people is to
company has a choice—either to follow the
capability of the organisa on might be the
avoid as much distrac on as possible, such
company rule book or what the employee
floor. We tend to put dispropor onate me
as late night par es, overea ng, binge
wants, which is an individual value
and energy in growing the stars. Then the
watching, etc. The fewer distrac ons you
proposi on or to find the right mix. That is
gap between the stars and the average
have, the more disciplined you are, as long
the heart of management. If you blindly
performers widens, leading to cynicism,
as your exercise and diet are in the right
follow the rule book, then a computer can
strife and back‐bi ng. The trick is to grow
direc on. Discipline, energy and focus are
do the job. If I pander to every individual
both
absolutely cri cal for any good career. You
need, I can't have 100 employee value
simultaneously.
have gone through.
the
That's
stars
and
a
the
average
need to manage all the three. Having one alone is not good enough.
proposi ons. The heart comes in judging BUSINESS MANDATE
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While India is readily pitching in with huge forex assistance coupled with food and commodities supplies against a long‐term credit arrangement, Sri Lankans are getting entangled in an unsolvable politico‐ constitutional crisis of their own making. What was touted as South Asia's 'Arab Spring' and 'Orange Revolution' is getting increasingly deadlocked because the faceless organisers or their unidentified prompters did not think of the day‐after.
Mr N Sathiya Moorthy Convenor Policy Matters ‐ Chennai
A
decade ago, the Sri Lankan
capacity to raise resources. The Chinese is the common denominator, but the Chinese debt trap is not the only reason. There are internal, structural deficiencies. On top of that, comes the Chinese funding. China’s loan
government
is about 10% of Sri Lanka’s loans and it is similar to that
was talking to China on the
of the loan given by Japan. There are others who have
Humbantota port funding. I
given loans including the international financial
asked a senior Sri Lankan official how they would pay back the funds. This was India’s only concern at that time. The official dismissed my apprehension and said,
If you have observed the
“Who in this country cares about paying back? This
developments of Sri Lanka in
government will be in power for 10 or 15 years. Then
the last one month, India is the
the next government will come. Again, after 10 or 15
only country that is putting in
years, they will change roles. This has been happening
money. Others who criticised
for the last 40 years.”
the government of Sri Lanka on
The Chinese Loans
human rights violation have not put in any money.
When we talk about the current crisis, the Rajapaksas do have a role to play but they are not the only ones. The problem that Sri Lanka is facing today
~Mr N Sathiya Moorthy
is faced by all of India’s small neighbours with minimal BUSINESS MANDATE
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2022
institutions. But China invested without creating one
World Bank. The World Bank issued a clarification that
single job and family income for Sri Lankans in the last
they have only permitted diversion of 140 Mn $ funds
10 to 12 years. They brought not only their materials
from other projects to essentials. I feel that Sri Lanka
but also their men. All the jobs that were in the non-
cannot survive with such small bits of investment. Even
government, industrial sector went to Chinese and Sri
if you get 4 Bn $ of IMF funding that is being negotiated,
Lankans were paying for it. May be, Covid had a role
it cannot last long. How much time does Sri Lanka
play, and so too President Gotabaya’s economic policies.
require to get back to and stabilize at pre-covid
He drastically cut down the number of taxpayers by
economic condition?
about a million and the tax revenue came down by 25
industry in Tamil Nadu might benefit by exporting to
to 30%. Then all of us know about the import of Chinese
Sri Lanka. But our cotton prices have shot up. The
It was believed that textile
organic fertilizer. All these added to the nation's woes.
Small Bits of Help
Unfortunately, in the last two months, every politician in Sri
If you have observed the developments of Sri Lanka
Lanka has conveniently diverted
in the last one month, India is the only country that is
the world’s attention from their
putting in money. Others who criticised the government of Sri Lanka on human rights violation have not put in
economic crisis to an artificially
any money. It was learnt that Prime Minister Modi
prolonged political crisis.
would take up with QUAD allies what they are going to do about Sri Lanka. Sri Lanka’s new PM Ranil
~Mr N Sathiya Moorthy
Wickremesinghe has been talking to FAO, IMF and 30
JUNE
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government of India is doing a lot but India just doesn't have deep pockets.
The Sri Lankan government is
talking to officials in Delhi asking for a 500 Mn$ loan.
The Repercussions On the day, the Prime Minister Mahinda resigned, there was violence by his people, which was very obvious, well documented and recorded. This happened
More Politics than Economics Unfortunately, in the last two months, every politician in Sri Lanka has conveniently diverted the world’s attention from their economic crisis to an artificially prolonged political crisis. The change of leadership of the government is not drastically going to change its economic situation. Ranil Wickramasinghe
before noon. The police, somehow, tactfully intervened. In two hours between 6:30 and 8:30 pm, the homes of nearly 80 politicians across the country were set ablaze. No one knows who did it. Suddenly the police and the politicians have woken up. But to me, it appears to be an organized crime.
who has taken over as Sri Lankan PM is among the best
This takes me to the first question on the economy.
the country has but he doesn’t have political backing.
Now, the mood has calmed down though not settled
As observers, we have seen that Ranil has a habit of
down. The government has said that outside Colombo,
fighting with the President of the day. This is the sixth
there is no dearth of resources. The prices have shot
time he has become Prime Minister in nearly 30 years.
and the dollar rates have gone up. The prices have also
He has not completed one full term. Now also, he is
not come down outside of Colombo. If the government
taking on the President and talking more of politics like
continues like this, will these organized groups keep
curtailing the powers of executive presidency and
quiet? Will there be another revolution, if not an
tabling of 21st amendment to the constitution, etc.,
insurgency? This is my greater concern.
than looking seriously at the economy. Sri Lanka is
From a purely Indian /South Indian perspective, if
witnessing an ‘Orange Revolution’ which is a public
such things were to happen in Sri Lanka, will it inspire
uprising for the exit of Rajapaksas (Gota Go Gama
some groups here?
campaign). Ms Nirupama Subramanian
They have gathered at capital city Colombo’s Galle beachfront for over several weeks now. In Colombo,
Senior journalist, National Editor ﴾Strategic Affairs﴿ The Indian Express
traditionally, the people are anti-left. So getting a crowd of urban middle class to protest is not difficult,
I
particularly against the Rajapaksas, whose human rights violations or handling of law and order or other issues have been partisan. Colombo has only two sets of voters
was in Sri Lanka in April, last month. Within one month,
there are so many developments,
—urban middle class, anti-Rajapaksa voters and
both political and otherwise. If you look at the roots of
suburban lower class, JVP voters who are also anti-
this crisis, everybody says that this accumulated over
Rajapaksas. There are different groups involved in these
generations. But let me start with the cutoff date of
protests. Even when we had the Jallikattu protest, not
2009 when Sri Lanka won the war against The Liberation
all of them swore by the same ideology or grouping. But
Tigers of Tamil Eelam. And what happened next?
it was an organized protest. BUSINESS MANDATE
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At that time, they secured an IMF package for reconstruction
on finding another enemy. The enemy then became the
and the market was lending
Muslims of Sri Lanka. There were so many events and
carelessly to them. No one red‐
riots in 2012-2013, one after the other, over hijab, halal
flagged that kind of borrowing.
and some other thing on a piece of fake news in Kandy.
We see the results now.
People died and many were injured, in the South, in Kandy and in central Sri Lanka. All these incidents kept the political pot boiling as it were. In 2019, they had the
~Ms Nirupama Subramanian
Easter attacks, which increased the anti-Muslim feeling. On the back of that, the Rajapaksas returned on two
White Elephants Galore
platforms—fear of terrorism returning to Sri Lanka and
Among the things that you see in Colombo today is the Lotus Tower, a telecommunication transmission tower which is not being used for anything. It is lying closed and was built out of a Chinese loan. There were plans to start a revolving rooftop restaurant on it. It is just a piece of ornamentation sitting there. When you look at it, you wonder at the kind of things that the Rajapaksas got away with. A lot of wasteful expenditure has been made after 2009. The Humbantota is a prime example of that. The port and the conference center were built on Chinese loan. People said there was probably one conference at this big center. In fact, Mahinda Rajapaksa promised as President that he was going to build Humbantota better than Colombo. There was even speculation that he might shift the capital out of Colombo to Humbantota. There is also an unused airport and a stadium where nothing big has ever happened.
reconstruction and the market was lending carelessly to them. No one red-flagged that kind of borrowing. We see the results now. There was no effort at any post war reconciliation with the Tamil people. Instead, the Sri Lankan political establishment, cementing their hold on the Sinhalese and Buddhist majority decided to focus 32
Gotabaya Rajapaksa, who was Defence Secretary at that time in 2009.
Lessons for Others One of the lessons, I think for the entire South Asia, is that populist authoritarianism does not work in the long run. You cannot close yourself off from listening to your own population and people who are clamoring for your attention. For instance, I’ll compare Gotabaya’s overnight decision to switch to organic farming with PM Modi’s demonetization decision. Organic farming takes almost a year to prepare the soil to cleanse it of chemical fertilizers and to receive organic fertilizers. But he decided to turn organic, just like that. It was most likely because they had no money to import essential items and they decided to knock off imported crop, it was a disaster. The tea crop hasn't suffered that
At that time, they secured an IMF package for
2022
against the against the Tigers of Tamil Eelam, which is
fertilizers and bring in organic fertilizers. For the paddy
The New Enemy
JUNE
the promise of security from the architect of the victory
badly. I am of the opinion that economic crisis is deeply connected to the political crisis and that the protests happening in Sri Lanka are not artificial. Those are real protests on the ground. All kinds of people, from middle class and upper class, are protesting. The reason they focus on the Rajapaksas is because they squarely locate the economic crisis in their rule.
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People in
People in India ask why we are
Colombo are now affected in a way differently from
giving them support now, when
people in other parts of the country due to their
they are just thankless. But
lifestyle. For instance, more people in Colombo drive
India has now got a lot in
cars than any other parts of the country. So the fuel
return that we hadn't got in the
shortage affects them more. They live on 24x7 air
last two decades since 2009...
conditioning, so power cuts affect them. They buy all kinds of imported items, including fish.
~Ms Nirupama Subramanian
Rajapaksas Calling the Shots It is true that India has lent money to Sri Lanka. The
everybody, because people know him as an experienced
money, petrol, diesel and rice that India has sent have
person. But why is political stability important in Sri
helped ease the situation a little, though it has not
Lanka? It has a lot to do with China and its role in the
mitigated the crisis. The money infusion from India has
Indian Ocean. Sri Lanka is part of the Indian Ocean
helped both Sri Lanka and Rajapaksa to stay stabilised,
which is an integral part of the Indo-Pacific.
in a sense. That is true. The President is still in power. Ranil is the Prime Minister but he doesn't have any
What India Gets in Return
people in Parliament. He's just one member and is
The protesters there ask why India is helping the
completely dependent on the Rajapaksa’s party (Sri
Rajapaksas. People in India ask why we are giving them
Lanka Podujana Peramuna) for support in Parliament.
support now, when they are just thankless. But India
The Rajapaksas have gone nowhere. They are still
has now got a lot in return that we hadn't got in the last
around, very much in charge and running the show.
two decades since 2009, needling Rajapaksa every time
Mahinda Rajapaksa has returned. His son has returned.
to give it to us, but he would not do that then. In the
So they are not running away. Political stability is the
1987 Indo-Sri Lankan accord, there was a line in the
key to avoiding a meltdown of the kind that we see in
annexure that India and Sri Lanka will jointly develop
Afghanistan. South Asia cannot have two failed States.
the Trincomalee Oil Tank Farms. India has got that now
That is a worldwide concern. It's difficult to imagine Sri
from December, the day Basil Rajapaksa came to Delhi,
Lanka as a failed state. At some point, it had a higher
to ask for a loan from India to help them out. India laid
per capita income than India and has better health and
out the red lines.
education
facilities,
fantastic
public
health
infrastructure and universal education. So Sri Lanka cannot fail and somebody has to help it. There is a kind of sentiment that Gotabaya Rajapaksa should continue for some political stability. Maybe there is an exit plan for him later, we don't know. Ranil becomes the face of the
government
and
he
is
more
acceptable
internationally. He can negotiate with international partners, the World Bank, and IMF, America, India, and
India is going to develop that farm with Ceylon Petroleum Corporation. Adani group is now setting up a solar farm in Sampur near Trincomalee and also in Mannar in the western part of Sri Lanka. There's going to be a solar energy farm in three northern islands of Jaffna, where they had asked China to develop solar energy from hybrid solar power farm. It may seem transactional and we've got a lot in return.
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The Reforms
very good and they are very
When I met Ranil Vikremesinghe in April, he asked me as to why he should become the Prime Minister,
efficient and disciplined in their
being the lone person in the whole of parliament. “How
work. They are at least 25%
can I even form a government? Governments have to
more productive than our
be formed with majority. Plus, who wants to be a PM in
workforce.
a system that has an executive Presidency. I'll take a decision. He'll sack me in a minute,” he said. There is a serious effort, although it sounds like a long-term plan,
The quality of their workforce is
~Mr Srinivasa Babu
to reform the political system and clip the wings of the executive president. It is famously said of Sri Lanka’s Constitution that the only thing that a President can't
workforce. Women workforce is also there, present in
do is to change a man into a woman and a woman into
all the industries. People are very friendly. They have
a man. Everything else is possible. So those powers have
amazing infrastructure in place and the traffic system
to be reduced a lot. The Gota Go Gama protest has
is so good. The laws to acquire land are not tedious.
actually taken a leaf out of our farmers’ protests in
Climate throughout the year and access to ports and
Delhi. The fact that the farmers were sitting there for
airports are good. But their political system is the
one year and finally Mr Modi had to make a U-turn on
problem. There are many issues in taxation and
those farm bills, has encouraged people across the
banking. A lot of black market is functioning, which is
region to realize their own potential and that
not good.
sovereignty is located in the people. Nobody believed that Sri Lankans could camp. But then, they put the
Opportunities for Indian Companies • Cost of labour is cheap and it is cheaper than
tents and they are there.
Bangladesh Mr Srinivasa Babu Chief Executive S. Duraisamy & Sons, Tiruppur
A
lmost 50% of income for Sri Lanka is from textiles, not
tourism. There are more than 1200
export
oriented
textile
units in Sri Lanka. 20% of their workforce is employed in textile industries. Their average salary is 30 to 45K SLR (Sri Lankan Rupee) per month which is about 6K to 10K in INR. The quality of their workforce is very good and they are very efficient and disciplined in their work. They are at least 25% more productive than our 34
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2022
• We can link the exports from Sri Lanka to import of yarn or fabric from India. This will help them in their export of garments to Europe and US. • Bangladesh has got MFN status for their garment exports. If Sri Lanka gets that leverage, their garment industry will take off and enter into US and Europe, competing with Bangladesh. This can be taken up in Quad meeting. • We can put pressure through FDI route by which we will also get something in return, for supporting Sri Lanka.
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power wield huge influence.
Mr Abbas Sathwala Chief Administrative Officer
Even the ministers’ kids in schools and colleges are very
Export Freight Pvt Ltd (EFL Global
powerful. Anyone speaking
India)
T
In Sri Lanka, the politicians in
against the government could
he Sri Lankan situation is
be taken away in the notorious
very grim and for the first
white van.
time, the media reporting is accurate. Luckily, work from home has helped to some extent, in segments where it is possible. There is power
~Mr Abbas Sathwala
cut on a daily basis. From 15 hours a day, it has now come down to 5 hours. The government prioritises the
Those in government are all old people. They are all
work sector. There is a food crisis. Very soon, we may
friends and only help each other. This needs to change
run out of paddy. The abrupt switch to organic farming
and youngsters must come in.
has become the culprit. But it was done mainly to ease the foreign exchange crisis.
In this regard, the Gota Go Gama protests have been fantastic and it has shown the power of the people. It
In Sri Lanka, the politicians in power wield huge
has united the country. Young people who migrated
influence. Even the ministers’ kids in schools and
from Sri Lanka are willing to return and take
colleges are very powerful. Anyone speaking against the
responsibility to run the government. Good governance
government could be taken away in the notorious white
is important for us. Change cannot happen overnight
van. The political system is such that the government
but there are signs that over the next five years, positive
is a family business, managed through generations.
changes will come.
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Dr Shyamala Swaminathan, a journalist, writer and social worker, on how she started her career as a journalist and became a social worker for the protection of rural girl children.
1
6-05-2022 அ நைடெப ற MMA க ப ைகயாள , எ தாள ம ச க ேசவக எ பய த DR. யாமளா வா நாத அவ க ‘எ களா த , உ களா ப மட சா ய ’ எ ற தைல ,ப ைகயாள எ ற ெதாட க இ ராம ற ெப ழ ைதக பா கா கான ச க ேசவ யாக எ ப பய தா எ பதைன ப ப யாக, நம அ க ன க ட ப ெகா டா . அவ ல யப கைள இ ேக த வ ம யைட ேறா . “நா ‘த ழக ராம க ெப ெகாைலக ’ எ ற தைல த ஆ கைள ெச ேற எ ெசா ன ேம பல , அ ரேயாஜனேம இ ைல எ ெசா டா க . ஆனா அ தா னா க என பல ெவ கைள ேத த த . எ ஆரா க ைரக பல த ெச தா க இட ெப றன. ம க ைடேய ற த வரேவ ைன ெப ற . அவ ைற ெதா ஒ தக ெவ வ த . அ த ழக அர ற த தக ப ைன ெவ ற . அ அ ேபாைதய த வ கைலஞ க ணா அவ க ட ைட த . இ த ைட த ெவ தாேன!” எ த ய ைத ள ெதாட தா .
35 வய யாமா த ைன இ க யச க ர சைனகைள ெகா வத பல வா க ைட தன. தலாவதாக ெப ேறா க யா இ லாத இ லா ய வ க கான ப ேநர ஆ ய ப ல , தாய அரவைண ஏ த ழ ைதக மன ைலைய ெகா டா . ெதாட ஒ மனவள ய ழ ைதக கா பக , க ய கால ப யா யத ல , ேம பல ர சைனகைள ேநர யாக ச ெகா டா . ெதாட லவ ட க ப ைக ைற ப யா னா . 1995 வ ட ‘த ழக ராம க ெப ெகாைலக க ’ ப ய ஆரா காக, ‘K.K. BIRLA FOUNDATION FELLOWSHIP FOR JOURNALISM’ வா ைன ெப றா . இ ேவ அவ மன மக தான மா ற ைத ஏ ப , வா ைகைய க
அ
த
ளதா
ய .
த ழக ம ைர, ேசல ம த ம ப க டாக ெச , ெப ெகாைலக ப ய ம க க ைத ேசக க ைரகளாக தகமாக ெவ ரபல அைட தா . னம க ெவ வ த ‘5௦௦௦ ெகா க ெகா ல மா ேடா ’ எ ற க ைர அதைன ெதாட பல க ைரக ம க ைடேய , அர அ கா க ட பல தா க கைள ஏ ப ய . ம ைர காமராஜ ப கைல கழக ேபரா ய க உத ட , தன 42 வய ப டேம ப த , ைனவ ப ட வைர ப , 50 வய ெச ைன மா ல க ைனவ ப ட ெப றா . ைறய க ப ட க ைட க ெப றா . இைவயைன ேம, ராம ற ெப ழ ைதக ச க ேந பலவைகயான ச க ெகா ைமகைள ெவ ப யதா
த ழக ம ைர, ேசல ம த ம ப க டாக ெச , ெப ெகாைலக ப யம க ேசக க ைரகளாக தகமாக ெவ அைட தா .
BUSINESS MANDATE
fountainhead of excellence
க
ைத ரபல
37 JUNE
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ைட தைவ எ ற ற உண அவைர க உ ய . அ ேவ ராம ற ெப ழ ைதகைள பா கா , ற த எ கால அைம த மன உ ைய அவ ெகா த . ராம ற ெப ழ ைதக ஐ ேபைர த ெத (FINANCIAL ADOPTION) ப கைவ , ேவைலவா ெப த மண ெச ைவ ற த வா ைக அைம தரலா எ ற தைன உ த . இத ெகன தன தா தாபா ெபய கைள இைண த D.SRINIVASAN VALAMBAL SRIVIDYA TRUST எ ற அற க டைளைய 2004 ஆ தா தா . கணவ வா நாத உ பட அைன பஉ ன க ம ப ைக உலக ந ப க , உ றா உற ன க எ அைனவ இ த ந ப யாமா கர கைள வ ப னா க . இ தந ப காக இேத மன ைல ெகா , ேஹா ெசய ப ெகா த ெகௗதம எ ற ற த ம த ட இைண ப யா ற ெதாட னா . ேஹா வா ச ய அற க டைள அற காவலராக இ தா ெகௗதம . ப ேவ ச க அவல க கா பா , ப ரமாக
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இவ வள ெப ழ ைதக ற த எ கால ெகன ட க யாமா அற க டைளயா வ க ப டன. ஐ ெப ழ ைதக எ ஆ மா தமாக ஆர க ப டஒ ட , 25 ெப ழ ைதக எ றா ய . ஆதரவ ற, கணவ ம ப னரா ைக ட ப ட ெப க அைட கல வழ ஒ மா ராம உ வா அள ெகௗதம ட இைன ெசய ப டா . தலாவதாக ‘LIFE SPONSOR’ எ ற ட ல , ெப ழ ைதக 22 வயைத எ ேபா , அவ க மண ெசல உத வைக , ஒ ெவா ெப ழ ைத . 1.5.ல ச ம ள LIC பா கைள D.S.V.S. அற க டைள வழ ய . 25 ெப ழ ைதக 25 ந ெகாைட யாள க த ல இ ட ெசய ப த ப ள . இர டாவதாக ‘SRI VIDYA SPONSOR’ எ ற ட ல , ஒ ெவா ெப ழ ைத க க டண ெச த ப ற . 25 ெப ழ ைத க 25 ந ெகாைடயாள க உத ல இ ட ஆ ேதா
BUSINESS MANDATE
fountainhead of excellence
ெசய ப
த ப
வ
ற .
றாவதாக ‘SHELTER SPONSOR’ எ ற ட ல இ த ெப ழ ைதக அவ க ெபா ேப தா ேபா ற ஆதரவ ற ெப க பா கா பாக வ வைக 22 அழ ய க , ேத க ேகா ைட அைம ள சாரேத வர எ வளாக 22 ந ெகாைடயாள க த ல க ட ப , ேஹா வா ச ய அற க டைள வழ க ப ட . ஐ ெதாட , இ ஆலமர ேபா பர ள D.S.V.S. அற க டைள, த நா ெத ேகா இ ராமநாத ர ெப ழ ைதக , அவ க தா மா க ட பயனைட வைக ெசய ப ெகா ற எ பைத பட கா க லமாக ள க கைள அ , எ களா ெச ய தைவகைள ட உ களா ப மட ெச ய எ றந ைகைய MMA உ ன க மன ைத , க ைய ைற ெச தா DR.
யாமா
வா நாத
அவ க .
1995, I received the K K Birla
Srinivasan Valambal Srividya Trust’
Swaminathan’s speech delivered in
Foundation
for
to financially adopt 5 girl children,
Tamil:
Journalism’ for my research work
educate them, get them employed
titled, ‘Female Infanticide in Tamil
and married. I joined hands with Mr
Nadu Villages – The Solutions.’ This
Gowthaman, Trustee of Vatsalyam
is what made a huge difference in
Trust based in Hosur, who retrieves
my mind and made life more
girl children from falling into social
meaningful. I went door-to-door in
traps and supports them. We could
Madurai, Salem and Dharmapuri
support 25 girl children through
areas of Tamil Nadu, collecting
this initiative.
The translation of Dr Shyamala
W
hen I said that I am doing
research
on
female infanticide in the
villages of Tamil Nadu, people dismissed it as useless. But that is what brought me so many successes later on. My research articles have appeared
in
many
Tamil
newspapers. They were also well received by the people. A book compiling them was also published and it won the Best Book award from the Government of Tamil Nadu. I received it from the then Chief Minister Mr. Karunanidhi.
Fellowship
public opinion on female infanticide and publishing them in articles and books. The article in the Tamil daily Dinamani Kathir titled, “Give us Rs 5000. We will not kill,” and many subsequent articles created a lasting impact
on
the
people
and
government officials. With the help of Professors from Madurai Kamaraj
At the age of 35, I had many
University,
I
completed
my
•
Provided 25 girls with 1.5
lakh worth LIC policy on their reaching 22 years of age under ‘Life Sponsor’ scheme. •
Provided financial aid for
education for 25 girl children under the scheme, ‘Sri Vidya Sponsor.’ •
Provided 22 little, sweet
homes to female destitutes, built in
opportunities to understand the
graduation and post- graduation.
social problems surrounding me.
Later, at 50, I obtained doctorate
First, through a part-time teaching
from Presidency College, Chennai. I
job at an orphanage for Islamic boys
received
and girls, I came to understand the
certificates. All of these made me
provide support to girl children and
mental state of children, who yearn
feel guilty that I got these accolades
their mothers in Ramnad.
for
by exposing social atrocities that
All these have been possible
a
rural girls face. It also gave me the
with the support of donors and
children’s home for the mentally ill,
determination to protect rural girls
philanthropists for various projects.
I understood many more problems.
and build a better future for them.
If we can do these, I am sure all of
In 2004, I founded a trust ‘Dr
you all can do much more and reach
motherhood
Following
a
short
and
warmth.
stint
at
I continued to work in the field of journalism for a number of years. In
many
awards
and
a complex called ‘Sri Saradeswaram’ in Thenkanikottai. •
Under
DSVS
Trust,
we
out to the needy.
BUSINESS MANDATE
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BUSINESS MANDATE
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Vani Aiyer, GM Corporate Communication, Nissan Motor India, talks about her own biases, the biases that people have about others and how we can overcome them.
B
ias according to me is the eighth sin. First, you need to know if you exhibit bias. Then, how do you manage that bias? You could exhibit bias purely by your body language,
the way you speak to people or the way you turn away from them. So bias can be demonstrated in multiple ways. But the fun part about all of this is its challenging. I've worked in the automotive industry for 25 odd years. Around a year and a half, I worked for Pond's. That's how I started my career. Somewhere in the middle of my career, I worked on health food drinks of Glaxo SmithKline. I was better handling petrol and diesel guzzling vehicles and my heart was in the auto industry where I learn something new every day and learn how to tackle something new every day.
Bias with Objects When you look at inanimate objects—a circle, a triangle and a heart, you already have a preconceived notion or a bias. Now that could be a black hole or a circle. There are multiple types of triangles.
The
moment we see a heart, we think it's too tacky or cringey. My generation used to draw hearts everywhere and we had heart-shaped balloons. But it was embarrassing to buy them on Valentine's Day for your boyfriend or husband or wife. So hearts have their own bias. Just as basic shapes and inanimate objects have bias; it is obvious that you will have bias when you are human beings. When you have a voice, you will have an opinion. Your opinion will create bias. Look at the fruits. A pineapple is hard and prickly on the outside, but it's
The auto industry, though, is fraught with bias. I will
intensely
not restrict the conversation on bias to just man or
characteristics. The same goes for an apple. We believe
woman. It also happens by virtue of your religion or
the pits are dangerous. I'm sure your notions are then
culture or country or city.
built on the basis of that bias. Grapes are bad for people BUSINESS MANDATE
sweet
fountainhead of excellence
and
it
comes
with
its
own
41 JUNE
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with diabetes. There used to be a time when I would see
and gentle. Again, when you meet people and they
a bowl of grapes and say, ‘wow.’ Today, if I see a bowl
don't follow etiquette of certain kinds, you judge them.
of grapes, I turn away. We all change with our life
You have bias and they choose to drive your
experiences. You are nothing but the experiences in
conversations or how you talk to people.
your life and what they make of you.
Debadging the Cars
Bias with People
I just want to take an example from the car
When it comes to people, we judge and mentally
industry. When we try to bring a product into the
create a balance sheet of their liabilities and assets. It
market, we first show everybody a car exterior. We
could be emotional or rational. When we see Rahul
debadge the cars, which means that you will never be
Gandhi, we may say that he does this or doesn't do this. If we see Ricky Ponting, we associate him with brashness. Of course, he was Australian and we have
When you look at all of these
this love/hate relationship with Australia. We think of
from the ecosystem of a
Kangana Ranaut as making a fair amount of noise and
business or brand, you have a
that she is opinionated. We might have never interacted
certain opinion. The more
with Rahul Gandhi, Ricky Ponting or Kangana Ranaut but we have opinions about them. I still remember one
research you do, the more
of my meetings with Arnab Goswami. It was the first
conversation you have about
time I met him. I already had an aura of sound around
something.
him, but he was very quiet and his handshake was soft 42
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2022
BUSINESS MANDATE
fountainhead of excellence
able to see any logos or spot the manufacturer. You'll
If I say that I was in a convent
be able to see the muscular lines, the stance of the
those last two years, you will
vehicle, the grill and the headlamps. Then we show
again hear me differently. The
them the car interiors, the luxuriousness or the lack of
moment I tell you that I went to
it. Then you go through a whole list of its technical specifications.
a particular college, then it
After you've seen all the physicals
brings in a certain perspective
around it, then you announce the name plate. Once we
to it.
hear the brand name, we get a different opinion about it. There can be a lack of bias, or a bias, depending on your opinion about the brand in the marketplace. Once you do that, the price will drive a completely different
a perspective. If I tell you, my dad was an IPS officer
conversation: "No, it isn't worth it,” or “It is worth it,”
from the Haryana cadre, it will have a different
etc. Then when you actually drive the car, it brings in a
perspective. If I tell you my mother taught in college
bit of a punch or the lack of a punch. The dichotomies
—she was a Professor of History in Gandhian Studies
are there for everyone to see. By positioning or how
—it has a different perspective. All of these add or
you brand the vehicle, you pre-conceive people's
derive bias.
notions. They may think, “I'm going to see a big bold, beautiful car in the showroom.” That's how positioning
Meddling in the Middle
plays its part. Then finally, when you look at all of these
I'm the middle child in the family. I always say that
from the ecosystem of a business or brand, you have a
I carry the attitude of Madhya Pradesh on my shoulders,
certain opinion. The more research you do, the more
meaning it's so large. I used to fight for everything
conversation you have about something.
because my elder sister was always older and she was somebody I could never say anything to. My younger
The Perspectives
sister was always younger, so I could also not say
I am a sari clad women. I'm wearing a ponytail. I
anything to her. I got stuck in the middle. I always got
wear my ear rings; I'm very traditional. But the moment
what my elder sister got as hand-me-downs. The next
I tell you that I was schooled in Haryana, mostly Hindi-
one was five years away, so she never got my hand-me-
speaking schools—13 schools in 10 years of which only
downs. My career began with JWT and that was an
three were English medium, you will have an opinion
advertising agency. I started as an Assistant Accountant
and that will drive you. If I say that I was in a convent
and I got out of there as a Vice President. I am
those last two years, you will again hear me differently.
extremely fortunate to have learned from Mythili
The moment I tell you that I went to a particular college
Chandrasekar there. She drove me to work. She threw
—Dayanand Anglo Vedic college—it brings in a certain
projects at me that I thought I could never do and books
perspective to it. It's a very studious college. It looked
that I thought I would never read. I am more of a fiction
like a school. There were 12 feet walls with six-feet of
person, but she made me read a lot of nonfiction and
barbed wire on top. So that again has a perspective. If
ensure that I did that. That helped me get rid of biases.
I tell you my dad and mom were working people, it has BUSINESS MANDATE
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43 JUNE
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Advertising took its toll, but it
Remember you are here to do business. We are all here
taught me a lot of things. It
for time and money. The moment everybody is on the
taught me how to fight my way
same page on time and money and you realise the fact
up. I moved from advertising
that you need to do business, the walls of bias just come crumbling down.
career to show space where I
Be Prepared
worked in events and event management.
There is nothing better than being well prepared to manage your business on a daily basis. When I left TVS, I thought I had put the final nail in my career’s coffin.
Then I worked in Ford and TVS. When I joined TVS, people would invariably ask me, “What’s an Iyer doing in Sundaram Iyengar & Sons?” It was a bias they had that was linked to the fact that I wrote my name as Vani Aiyer, but it was because of my North Indian upbringing; I didn't really care what was after my name.
Nissan came to me at a time when I thought I was going to hang up my boots. For a year and a half, I worked with them in marketing and I realized the biggest bias I had to face was about numbers. Some of the bias, I created in me and some of the bias, others around me did.
Actually, I used to write my name as Vani Harishankar.
I didn't score well in school maths and it stayed
Harishankar is my father's name. But he said, if I have
with me. The fact that I got 7 out of 100 in one test in
a smaller name, it will fit easily into a passport and he
my class 8 stuck in my head. Every meeting I go, I make
suggested ‘Vani Aiyer.’ He also said, “Anyway, you will
sure I write down the numbers, big, bold and in red on
only marry an Iyer. So Vani Aiyer will be fine!” So the
a sheet of paper. I can read it without my glasses and
Aiyer thing stayed with me. In TVS, I spent three years
I don't forget that number for my life, whether it is our
happily. They accepted me the way I am—with all the
revenue, profit, how many cars we sell or how many
aggression, conversation, loud speaking and presenting
variants we have.
myself. They had no bias in me as such. But there was
people who sit opposite me, do not hold that bias
a different bias. In TVS, most women were in the
against me, though I do it to me and sabotage myself.
Secretarial department or in Finance as Chartered
I will tell people that I am poor in Math but a rockstar
Accountants. You would not find women in business. I
in English.
sat in the management committee conversations, which in itself was a bit too much for everybody. But I had the support of my bosses. I had the support of people who knew I could present my case and that I could articulate
If you put business first, there is no bias. The moment you stand up for the business, the bias goes. 44
through in your career or life. It's also social media because you have multiple personas.
I found an interesting way to exhibit how I lived
Put Business First
2022
In today's world, it is not just what you have lived
The Seven Year Itch
what the business needed.
JUNE
That is my prep to ensure that
through my entire life of 49 years. At seven, I believed I was my own enemy. My elder and younger sister used
BUSINESS MANDATE
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to study very well. I had dyslexia of sorts. In those days,
agnostic to whoever I talked to. I meet interesting
nobody knew what dyslexic meant, leave alone, trying
people who have phenomenal stories to tell every day.
to find out if I had dyslexia. I had ADHD. I discovered
I am age agnostic. We must spend time with people who
all that later when I saw the film ‘Taare Zameen Par.’
can actually help us grow and overcome obstacles.
The Rebel
No One Can Take It Away
At 14, I had decided to rebel. So I grew up in the
At 35, I kind of cracked it. I had a boss, a gentleman
early 80s when you had to get back home before it
called Mr. M A Parthasarathy. He used to be known as
became dark. I never did that as I mostly stayed out of
the brains because he was from BITS Pilani and he did
home. I used to play tennis for an hour, go for
his engineering and later, MBA from IIM.
swimming and tuitions, which meant I never reached
completely a 5-star, best performer. I remember him
home before 10 pm. But I was doing judicious work and
calling me one day and telling me, “Vani. You've cut
I was in the right place, doing the right thing. My
your teeth on strategy and nobody can take it away
parents always knew where I was but I was rebellious.
from you in the automotive world.” I just looked at him
I actually wanted to be a tennis player but my mother
with disbelief, as in most cases, my bias would put me
said, “What will everybody say, if a daughter of an IG
down. That was the day my life changed.
plays tennis?” So my bias came from people around me and unfortunately, my parents too.
He was
Advertising took its toll, but it taught me a lot of things. It taught me how to fight my way up. I moved
A lot of it is PTSD, at least in my generation. We
from advertising career to show space where I worked
have all suffered the trauma of our parents not knowing
in events and event management. I worked with
enough of how to deal with the problem, but they have
different brands—from General Motors to Toyota to
also been our biggest backers. At 21, I thought I was a
Vodafone and so on.
maverick because I made a decision to get into
marathons. What I learnt amongst all of this is that
advertising. In those days, advertising was not a good
people come in all shapes and sizes. If you listen to
place for girls to go because “that's where, the not-so-
what they have to say to you, more often than not, you
good people hang around, work happens after dark, you
will end up stumbling over your own feet. Listen to
will come after dark and stuff like that.” Within a quick
everybody, but do what you want to do and do what
2 to 5 years, I had my two daughters. In advertising at
you think is right. If you have the right value system,
JWT, at 7 am, I had to be at the plant if I wanted to meet
then your conversations go the right way.
my clients. Then, in the evening, the client would come back to office at 6:00 pm and the discussions would
I have done cyclothons and
Different Faces on Social Media
continue. So, it was like, I had to do a dual job. I ended
Look at yourself on social media. Each social
up working from anytime between 6 am in the morning
medium shows you differently. For instance, on
till 12 or 1 in the night. People, you work with, are
LinkedIn, I look my professional self and if you go over
equally strong about creating situations on bias, not
there, my entire career history can be seen. On
because you are a man or a woman or anything. In fact,
Facebook, I have my social conversations. On Twitter, I
I have never thought of myself as a female. I am
share my opinions about cricket, politics, media, cars,
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auto, about anything and everything. In Insta, I post lots
I believe Karma exists because I have seen it occur. I've
of photos and stories and fun facts. It talks about how
seen it happen in my lifetime, not once, not twice but
I think and how I feel very open. I am a big fan of
a billion times. What goes around, comes around. How
Pinterest. If you go to Pinterest, I express myself and
you treat others is how you will get treated at some
catch up on a lot of content, which is phenomenal. But
point later. Then don't ask the world why it is all
each one of these social handles shows me differently.
happening to me. It is happening to you because you
If you saw only one of them, you would talk to me
deemed universe to work in a certain way.
differently. You would have a preconceived thought process about me or the way you would think of me. That's how people would perceive you as well. So, the biases that you have, when you look at all of these social forums is just infinite. If you don't have bias, you will be a saint. Every one of us has bias to begin with
Fourth, have a voice. Have a point of new. All of us have a tongue. God has given us great functional tools. We can stand pain, power, stress issues, sicknesses and everything. But if you don't use the voice that you've been gifted with, it's a travesty to your body.
and none of us is a saint. The time that we have to do
Fifth, and finally, make yourself so strong. When
business is finite. We have limited time and limited
they say, ‘The strength is within you,’ I used to think
money. We must try to see how to make bias work for
it's crap. I had no idea of what was within me. But I
us.
realised that, over a period of time, you end up looking at problems and solutions in creative ways and that
The Five Rules to Manage Bias
builds you up as individuals. And that is what is within
I have five rules to manage bias and they're very
you. Answers are not there in any book. There is no guidebook to live life or move away from bias. You live
simple. Number one. Behind any successful man, or woman, there could be a man or a woman. It could be anybody. For me, it is my husband. We decided to keep our work
through it. You try to put it into an Excel sheet. I think Excel sheets are fabulous stuff, even though I was completely against math.
life separate and even today; nobody comes to pick me
The human beings are so different from anything
up from the airport. Be agnostic. Be agnostic to religion,
else that you can be like a dolphin. Dolphins are still
age, state, country or whatever. Agnostic as a word is a
evolving but they push away sharks, knocking their
great takeaway. If you try to be as agnostic as you can,
sides with their bulbous nose when they are attacked.
you won’t have any preconceived notions about people
When you go into a conversation and you want to have
or where they come from.
a win-win solution, you need to be dolphin like. You
The second and the most crucial, you must always be prepared. The best way to remove bias from any conversation is to be very well prepared. If you go prepared into a discussion, you will always go for a winwin solution.
need to be creative, because that will drive bias away. We all have bias. We are not born with bias. We acquire bias along the way. The only way to knock bias out is to have your own little, cheat sheets on. These are my five cheat sheets but you will find your own experiences and your own means and ways to get bias out.
The third and something I believe in: Be generous. 46
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The Union Budget 2021 proposed implementing the New Wage Code 2021 with effect from April 2022. The New Wage Code is an attempt by the government of India to simplify various regulations related to wages. The definition of ‘wage’ in the Wage Code Bill 2019 has been altered. According to the new definition, ‘wages’ or an employee’s monthly basic salary cannot be less than 50% of the net CTC ﴾Cost To Company﴿. A discussion.
Mr S Sai Prasad, Advocate
T
he
laws
that
• Whether the companies are entitled to reduce are
being
amended
and
consolidated under this code are: The payment of wages act, 1936; Minimum wages act, 1948;
PF contribution as per the new code? • What is the effect of minimum wages in the new wage code?
Payment of bonus act, 1965; and Equal remuneration Mr A Soundararajan, State President, CITU:
act,1976. Subcontractor has been now included under contractor. Contract labour definition has been revised to cover those employed with or without the knowledge of the principal employer including inter-state migrant
T
here
will
be
practical
difficulties
in
implementation. There is no need to fix an upper limit in the employee benefits like PF
contribution. From the employee point of view, for the
labour. Wages include basic pay, DA and retaining
past 40 years, there were certain provisions favourable
allowance. There are many items now excluded from
to employees which the government wanted to remove.
wages and this has created considerable concern. The
Now under the guise of a new code, they have done
nature of work will now determine the minimum wages
away with the provisions. An amendment would have
and not the nature of industry, as before. This is a
attracted lot of protests. They have thus used the
major departure when it comes to minimum wages. The
codification route.
code leads us to the following questions: • Should employees restructure their wages?
Many of the provisions are pro-management and not
• Whether 50% wages would be on gross or on
favourable to employees. The code in many clauses
CTC? 48
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Many of them are repetitions from other codes.
2022
states the use of the word, may—for example, the State BUSINESS MANDATE
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government may. A law should only state ‘shall’ and not
a big inequality in income distribution worldwide. Japan
use ‘may’ which gives an option to not follow the
has said that they want to double the minimum wages.
provision. It will lead to more litigations. There have been many judgments given earlier and even formulas suggested for wages. These have not been incorporated in the new code. In hilly states, the cost of living is higher. But the code has neglected this aspect. There is
There is now flexibility in fixing working hours. This is not good, as more working hours will lead to health problems of workers. However the welcome aspect is that OT wages is fixed as double the normal wages as against 1.5 times now given. The inspector is now defined as inspector cum facilitator. This is a dilution. Inspector raj has been removed, they claim. If there is a law, there must be an enforcing authority. The management and union should work together.
Inspector raj has been removed, they claim. If there is a law, there must be an enforcing authority.
~Mr A Soundararajan
Mr Amaladoss Mariasusai, Director HR, Tempel
S
upervisors who are earning less than Rs 15K will now be treated as workers. This is a challenge. There is a catch 22 situation in the wages
calculation now. Wages include basic, DA and retaining allowance. There are other exclusions. The grand total is arrived at, by adding wages and other exclusions. If other exclusions exceed 50% of grand total, the
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7. Bonus provision will increase the present
disbursement by 25 to 30%. This will impact
Requirement to pay higher gra‐
employers.
tuity will impact take home pay of employees in future.
Dr Vijay Deshpande, HR Advisor ‐ Global Business, JK Tyre & Industries Ltd
~Mr Amaladoss Mariasusai
T
he labour code is built on three premises: 1) To enhance, strengthen the employer-employee relations.
It
must
be
harmonious
and
productive. 2) To enhance the welfare of the labour
difference in amount should be added to the wages.
workforce, particularly the blue collar workers. 3) To
This will lead to a vicious cycle. Impact areas:
enable ease of doing business.
1. Increase in gratuity contributions –applicable for past service periods will impact P&L account. 2. Requirement to pay higher gratuity will impact 3. Mandatory requirement to cover employees from ESI/statutory bonus perspective will lead to more employees falling under the net and additional
commitment
to
the
management. 4. Higher contribution to PF for employees with wages not exceeding INR 15K pm is a challenge. 5. Maternity: Earlier, during maternity, full salary was paid. Now the new requirement is payment of only 50% of wages. Female employees will be impacted and attracting them for employment will be a challenge. Though they have increased the leave from 12 to 26 weeks, they have reduced the salary by 50% 6. OT is now double the wages, not double the total remuneration. In effect, OT will come down. This will impact employees and it will be difficult to convince employees to do OT. 50
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the good areas. Our PM asked why we should talk of Industrial Disputes Act. Why not have a dialogue?
Unions
take home pay of employees in future.
hence,
There are both good and grey areas. Let us look at
An important aspect of the code is unions. We have had problems of multiple unions. The labour code now talks that the union that is to be recognised as the negotiating agent or chief bargaining agency will have minimum 51 percent membership. Any union that has 51% membership automatically becomes the negotiating agency on part of the labour. That is a good thing. Now, in case, no one is able to have 51 percent, then it says that minimum 20% membership is required and each union that has 20% membership, will have one representative on the negotiating council. This is important in companies in certain states where there is multiplicity of unions. Luckily Tamil Nadu does not have so much of multiple unions. But, as the head of HR in JK Tyres, I have faced 27 unions in one of my plants in Uttarakhand. We have 3,000 workers and 27 unions. When you negotiate with them and if each union is allowed to bring two of their members, then I will be talking to minimum 54 people at the negotiating table.
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This is very difficult. The code, to an extent simplifies
The idea seems to be less politicisation of the Unions.
that. This is a welcome sign. But the only thing is that
There are states where the
the recognition of 51% membership is left to the
ministers are the Chairman or
management to decide. I don't know how managements are going to see this. There are still certain states, like
the President of the Union. It is
Maharashtra, which has Maharashtra Recognition of
very difficult for a manager to
Trade Union Act, where you prove your membership
negotiate with a Minister.
and then the court grants you recognition. What is applicable for long-term agreement is also applicable
~Dr Vijay Deshpande
for the standing orders. Only the negotiating union will be able to participate in the long-term agreement, as platform workers. The raw material may be supplied
well as in the framing of the standing orders.
by the so-called employer and the work may happen at
Less Politics
home something like in beedi or pappad.
There is one particular provision, which I have
There is going to be National Security Council
carefully read in the labour code. It says no member of
consisting of ministers, political leaders, the union
the Council of ministers shall be on the executive
leaders and the management, whenever that gets
committee of the Union. The idea seems to be less
formed. The intent is good.
politicisation of the Unions. There are states where the ministers are the Chairman or the President of the
Ease of Doing Business
Union. It is very difficult for a manager to negotiate
Let's come to the ease of doing business. There's
with a Minister. I don't know how this is going to
something called FTE -Fixed Term Employees. The
happen or how it will be implemented.
company can now appoint fixed term employees for a
Welfare
specific purpose. Supposing you have an expansion project in your plant, you can have FTEs for four, six or
Now, let me come to welfare. Some companies have
eight months. The term has to be very clear. The
an intent to avoid PF on the larger basic and the PF
appointment letter has to be very clear and must be
commissioner always said that allowances must be
given to the FTEs.
considered for PF and there used to be litigation. Now,
payable even for service, which is just about one year.
they have tried to come to 50-50. But if you look at the
So that's another welfare measure. The FTE probably
spirit of the law, you will see that the law says, 'don't
creates some ease of doing business. Legally speaking,
try to evade the PF.' Obviously, it is going to be very
can a company have all FTEs? A leading lawyer said yes
difficult.
and no. Yes, going by the plain definition of FTE. But
In case of FTEs, the gratuity is
Let me come to one another aspect of welfare. A
then, there are going to be rules. The rules will specify
large number of unorganized labour is going to be the
when you can you have FTEs, under what circumstances
part of the Social Security measures. There are gig
you can have FTE and under what circumstances, you
workers (eg: Zomato), home-based workers and
cannot have FTEs. It also says that FTE composition
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...in wages, the 50%‐50% provision is going to be an issue; hopefully, it gets resolved. The industrial relations will depend upon the intent and the spirit of collective bargaining and cooperation.
~Dr Vijay Deshpande
must be equal to the permanent workers composition, going by the skill. So FTE seems to be a reasonably good provision. There is going to be facilitation and not inspection. There is one more provision that there will be one window for registration of industries. You don't have to run to 20 different windows for licenses. For any new unit, you will be able to go to one window and get your registration. This is the intent of the law. Finally, in wages, the 50%-50% provision is going to be an issue; hopefully, it gets resolved. The industrial relations will depend upon the intent and the spirit of collective bargaining and cooperation. I have always seen the mature leaders, balanced leaders and 52
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considerate leaders, who see both the sides. If you have maturity and consideration on the part of both the labour and the management, then ease of doing business will automatically come in.
The
industrial relations will be stronger and welfare will definitely happen. The law cannot replace the spirit of collaboration, cooperation and collective bargaining. It can only create a framework where supposing you are not able to resolve the issues or when you come to loggerheads, it tells you what can happen and what you can do. The best part is to have a dialogue and resolve the issues.
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