Saturday, May 3, 2008

Slapping and Sledging

The most talked about topic in corporate corridors these days, is not so much whether the RBI hike in CRR will curb inflation, or whether the export disincentives for steel and the import reductions for its raw materials will do the trick, but whether sledging is right and if a slap is the best response! Given the media columns devoted to this “national incident” and the larger issue of sledging in sports, here are a few nuggets on this episode that probably deserve second thoughts.

To the discerning, it would be clear that the 'word' is and has always been, mightier than the “sword”. In any conflict, or intense rivalry, the 'word' has been used to telling effect. Most people now concur, that its the 'mental victory' that is crucial and which dictates the events in the physical plane.

Those who have been part of the 91% viewership that the serial garnered on Sunday mornings, a couple of decades ago, would be familiar with the “Mahabharata”. (Other sources of awareness also exist! ). The focal point of the epic was the Bhagawad Geeta. It was essentially the power of 'words' that lifted Arjuna from an 'anxiety attack' and gave him the resolve and the mental strength to realize his potential.

The much debated “Sethusamudram bridge”, which is the news these days, has an interesting anecdote attached with it, in the epics. The Ramayana refers to the time prior to its construction, when the sea had to be crossed through other means. “Hanuman” was told, that he alone, could jump across and reach Lanka. A feat, he felt, was beyond him. It is said that Jambavan, another simian, referred to incidents in Hanuman's life, where as a child, he almost reached the Sun and convinced him, that it was within him to reach Lanka on his own. This is often referred to as “Jambavani”. 'Jambavani' is something that helps someone realize his true, latent, strength. Parents are advised by psychologists to provide positive 'auto suggestions' to children that work as 'Jambavani'. If we were to use modern terminology "Pygmalion Effect" or "self fulfilling prophecy" are the terms in use. Pygmalion effect naturally comes from G.B. Shaw's play of the same name, where Eliza Doolittle mentions that for Prof Higgins, she will always be a "cockney girl" because that is what he expects her to be while for others like Colonel Pickering, she will be a lady with etiquette since that is what they expect her to be! The learning her is that people take 'cues' from the environment and behave.

In a book titled "Winning Habits" by B.P. Bam, he also talks about the power of verbalisation and visualisation. Verbalisation is according to him about meditation and chanting, while visualisation is about projecting yourself to a higher level than where you are currently. Verbalisation through mantras and chants help in creating the right imagery, concentration and in focusing on the moment. Like Arjuna who saw only the target, for success focus is key both on the physical and mental planes. Visualisation is supposed to build muscle memory and create subsequent natural responses. Something which Rahul Dravid claims he has benefited by. Mathew Hayden is known to sit at the batting pitch prior to the match to visualize the actual subsequent inning he is to play. Batsmen are known to repeatedly do well in a venue and this is to some extent, due to the venue triggering nueral maps, that are positive.

There is a lesser known tale of Karna and his charioteer “Shalya”. It is believed that Shalya constantly was ‘chatting’ with Karna and reminding him of his birth in a low caste family, a sore point, with the otherwise brilliant warrior. Apparently, this led to the warrior fighting depression and the Pandavas!. To make things worse, he could not kill any of the Pandavas except Arjuna, because he had given his word to Kunti, who confesses to him that she is his biological mother, one day prior to battle. To make things worse, Karna was also constantly the target of jibes from Bhishma and on the occasion of Kurukshetra, chose not to fight for his friend Duryodhana, as long as Bhishma was leading the Kaurava army. Parashurama his guru, gives him a 'curse' which is an 'auto suggestion' of sorts that he will forget all that the learned, at the most crucial time. It works like a self fulfilling prophecy at the Kurukshetra, when he is without a chariot and he falls to Arjuna. Karna is also burdened by the fact that he knows that he is fighting a loosing battle. There are references that Vyasa gives, which indicate that Karna knew who Krishna was and how the battle would end. He still chooses to do his duty by his friend and benefactor. Karna is a clear case of a talent that is unmatched and without equals being denied a platform and circumstances to flower and find full realization. Something that is a common occurrence in sports, arts and even in the corporate arena. Being denied admission due to caste, community, colour, being discriminated for the same reasons, being forced to work for not so ethical people, or for organisations and teams whose value system does not match with one's, being forced to do jobs not suited to one's skills and ability, are all situations a lot of talented people are faced with. Having a "shalya" remind you of that is a sure fire trip to "disaster" or "self destruct".

A mild form of shalya vani would be the 'ash scanning' , or head on comparisons that companies do. Sometimes it is straightforward competition and sometimes it looks like juvenile gamesmanship.The Pepsi – Cola wars are full of such anecdotes. The “nothing official about it” was a “slap” on Coca Cola. Now too, the exclusivity that Coca Cola has on advertising has been made to look silly with Pepsi coolers in the background and obliging commentators (whose grandchildren are probably the target audience) endorsing the brand! Sprite in turn is intent on taking the mickey out of Pepsi and seems to winning the share of “sniggers and laughter market” and possibly the seedhi baat is that it is garnering market share too.Taking huge hoardings outside the competitors office is one way of gaining a psychological advantage. There are many more when you get down to the shopfloor.

A variant of this, is the malicious rumour, or character assassination.

The Ramayana mentions how a malicious Mantara’s words led to Kaikeyi’s shift in attitude and her asking for her stepson’s exile to the forest. This inspite of the fact that she had a lot of affection for her nephew and that it was reciprocated with respect.The 'Maryada Purushan' himself was also not immune to “words”. A stray remark from a washerman apparently led to Sita being banished. Never mind that he won her after breaking the Gandivam and that she followed him to the forest, not to mention the fact that she was pregnant with his children.

The corporate world is not innocent of this either. To bring down a colleague who seems to be moving a little too fast, we find the grape vine suddenly buzzing with a few details of his misdeeds which could be complete fiction. Sometimes it is a lot more open with snide remarks and innuendos in the open.

Media releases both direct and through leaks are made to get competitive advantage.The “Rising” of an Amir Khan was stopped with a rumour that collections were poor at the opening, when it was not so. A simple use of words to render a project futile. When Camay International was launched, there was a rumour that it contained “beef tallow”. The damage control was done, but it did cause a stutter at the retail level. Sting operations are a sophisticated variation of this and where technology makes credibility built in.

Whistle blowing is a threat most companies guard against. Most sensible companies ensure that an employee who is leaving becomes an ambassador of the company and not a source of negative word of mouth.

In the light of all this,where does sledging fit in?

Sledging seeks to reverse the positive imagery that helps someone or a team play to its potential. When sledging, rumour mongering, press releases about opponents misdeeds, failures etc, trigger negativity and anxiety in the target, the sledger is successful. The objective of sledging is to make the other player loose concentration and trigger negative images in him. Given the rules of the game, if he looses to provocation on the field, the results are disastrous. The Zinadine Zidane vs Masseratti at the World Cup is an example. If the target is provoked, but cannot do anything about it, the stress sets in. The ones who are mentally strong react with more focus and aggression which may boomerang on the sledger. Remember the Yuvraj – Flintoff episode and the recent Shane Warne - Afridi episode? . For McGrath, the sledge came back like a boomerang, when Sarwan retorted and touched a raw nerve.But it did work against Rahul Dravid in South Africa, when Alan Donald tried it. Sidhu was a target for most people because he used to oblige every sledge with a response. Slater is known to loose it as also Daryl Cullinan.

Dhoni got it dead right when he said that there is an art to sledging. A shrewd assessor of situations, he has hit the nail on the head. The elements of sledging would require a good knowledge of the target, his weak points, the selection of the right time and the occasion. Using abusive language is indicative of poor parentage. Slapping people in full view of cameras is indicative of a lack of common sense.

There is a time and place for everything and if done with a plan, things work out fine.

ENDS...

Tuesday, April 29, 2008

Book Review: "How Buffett Does it " by James Pardoe.

'How Buffett Does It', by James Pardoe is a great guide for investing in any market. It is well worth the effort and should in fact be a must read for every young management student and why not anyone who has the capital to invest.

1. A frugal billionaire Buffett believes in simplicity. He advises investors to take easy decisions. Never buy when you are doubtful. Invest only if you understand the businesses well.

2. Focus on not losing money rather than making it. Don't own any stock for 10 minutes that you wouldn't own for 10 years.

3. A proponent of value investing, he believes that one must take decisions on his own. He doesn't believe in listening to analysts or brokers. The best investing decisions come from oneself.

"It is not necessary to do extraordinary things to get extraordinary results."

4. Buffett advises to invest in 'old economy' businesses, companies, which have been around for fifty years and will continue to have a long innings.

5. We have often heard of people suffering heart attacks when markets crash. Well, Buffett advocates a sound temperament for stock market success.

6. You don't need to be a genius to succeed in the stock markets. People who can stay cool will succeed in the long run. Always keep in mind the hidden costs, from commissions on active stock trading to high mutual fund fees.

7. Buffett always looks at businesses he can understand, look at the profits in the past, long-term potential of the company, good top level management of the company and companies that have a good value proposition. The strategy is to think about the business in the long term.

"You are neither right nor wrong because the crowd disagrees with you. You are right because your data and reasoning are right."

8. Invest in businesses with great management. Always keep a track of the management of the company. The top decision makers have a lot to do with the company's performance.

9. One of Buffet's biggest strengths is independent thinking. Many people go by what the experts says or what others do but belief in one's own judgement is the key to stock market success.

10. Patience pays, says Buffet. He says one must not worry too much about the price of the stocks. What's more important is the nature of business of the company, earnings capability and its future potential.

11. Don't target just stocks, look at businesses. How a company performs is key to its stock market performance. You must know the track record of a company before you invest in it.

"Price is what you pay. Value is what you get."

12. Prices keep changing. Don't get worried by the ups and downs. Investing is all about creating wealth. It's important to understand the value of a stock than its price.

13. He believes that franchisee businesses are good opportunities to invest in. Avoid hi-tech, complex businesses. Look for businesses that are set to diversify and grow.

14. Never be disappointed when markets fall. Take it as a buying opportunity. Buffet says one must have lesser number of investments with more money in each lot.

15. He advises to avoid diversification. Invest in companies with sound business models. Choose a few good ones and stay invested, it will give you the benefits.

"I don't look to jump over 7-foot bars; I look around for 1-foot bars that I can step over."

16. Doing nothing pays at times! One must not jump at price fluctuations and take impulsive decisions.

17. Don't get carried away by market forecasts. Ignore market swings and remain an investor with a good business sense.

18. Buffett advises to be fearful when others are greedy and greedy when others are fearful. Buy when people are selling and sell when people are buying.

19. Make a list of companies, sectors that you find safe to invest in and try to stick to the list.

20. A sound business, strong management, good fundamental and low stock price should be a must-buy. "Most people get interested in stocks when everyone else is. The time to get interested is when no one else is. You can't buy what is popular and do well."

21. Try to ignore stock charts, says Buffett. They may not give the right indicators. A stock which may have done well earlier may not do so in future.

22. Buffet spends a lot of time on reading and more importantly thinking. Reading helps investors, so spend a lot of time reading about the stocks, companies and markets. A good investor must have a good knowledge base.

23. A good investor also needs to be efficient. Investors may have great capabilities but many do not make use of it. One needs to hone skills to meet the targets.

24. Good investors never rush to make money. They give time, thought and work on investment decisions. The mistakes that others make should be a lesson for you.

The title : How Buffett Does It by James Pardoe.

Rs 225. Tata McGraw Hill Publishing.

The Sub Prime Factor

The sub prime crisis in the United States resulted in an outflow of funds to India pushing up the stock market indices in India and resulted in a bull run with the Sensex shooting upto unprecedented levels, 20k if i am right. This was towards the later part of 2007. The Reliance IPO happened which a huge success and this resulted in a lot of investments being tied up there. A lot of investors and specuators had their money locked up and had to sell other equities to make good on earlier commitments. This resulted in a slump in mid to late January 2008.
Now its the slowdown in the global economy that is everyone's worry. Petrol/Oil has crossed and gone much beyond the Us$100 a barrel, commodities too are at an all time high (due to food stock being diverted to bio fuels according to some people) and in India inflation is spiralling to 8 % and above, though at the time of writing it is at 7%. The RBI will curtail supply of currency by hiking the CRR and through other means which could mean a hike in interest rates. While the rupee appreciated vis a vis the dollar during the sensex bull run, it will come down due to the hike in oil rates and the higher import bill if food is imported. While the appreciating rupee will have hit the IT sector and other labour intensive export industries, there will be relief since the rupee will stabilise against the dollar with the inflation and import of foodstuff and oil.
But the scenario in India is not all that bullish as things stand.

Sunday, April 27, 2008

IPL:Handshakes and Hipshakes

'In the Eastern society, a woman is revered because she is the light of the home and mother of the children, in the western society she is looked up to because she sets fire to men's hearts' wrote Tagore in his novel "Gora". (the wordings may not be verbatim, pardon me.)
I think it holds true even now, when we juxtapose mores and customs at home and abroad. While gunghats and pallus hide the modesty of the Indian woman, with a bindi/sindoor telegraphing marital status, in the West, she is hardly clothed in social settings!! Plunging necklines and backless gowns with splits going right upto the hips seem to be the norm, irrespective of the season or the vintage! Men incidentally are clothed to the teeth!!! Tuxedos and what not with just the face and a bit of the neck showing!!

The emphasis on good looks is all prevailing where the sun sets. To select the best among the female gender, there is a 'bikini' round and pulchritude is the measurement variable! (There is a question round, but then more often than not it is a farce! We therefore have winners who think Mother Teresa is the greatest living woman, even in 2000!!) Consequently,women spend a fortune on plastic surgery and it ranges from tucks to botox to implants and whatever else. Cheerleaders are an extension of this thought. You need good looking women with provocative clothing to "spice" up something which is essentially a test of skill and nerves played among men. I personally think it is misplaced. There is a time and place for everything and the cricket ground is not the place for scantily clad dancers especially when it is telecast nationally and watched by school children.

In fact a Lebanese restaurant is definitely the place for a belly dancer.The whole concept of fine dining with wine, a multi course Lebanese cuisine and the music and dance is harmonious. I also accept the need for people to unwind , to let their hair down and there is certainly a place for erotic dancing in pubs , discotheques and nightclubs, but the sports ground is not the place for it.

Continuing in the same vein, Sreesanth needed a tight one across his face, but it was the wrong time and place. I fail to understand why it is essential to abuse your enemy and use his inability to give it back to you for competitive advantage. Sreesanth was therefore in my opinion,going around begging to be hit. Whether it is football or cricket I think the person who provokes and the one who picks the bait are both at fault. As also people who manage the game.

Sports is meant to be played for relaxation and fun. It should be so for those who play it and for those who watch it. Even if it is played on a professional basis, it need not result in abuse and juvenile behaviour.

I am quoting the 'Ganeshotsav Sandesham' which I found in a complimentary diary given to me by the M.S. Bhuvanachandran the Pramukh of the ShivSena in Kerala.

Vaakil ninnu Shani (From the "word" emerged Shani*)
* shani is the son of Saturn and associated with negative results.
Shani vina aayi (Shani became Trouble)
Vina vidhweshamayi (Trouble led to Dislike)
Vidwesham vairagyam aayi (Dislike led to Malice)
Vairagyam Vaashi aayi (Malice led to Hatred)
Vaashi Naashamayi thirunnu (Hatred ends in Destruction )

Or it could lead to a positive chain of events as:

Vaakil ninnu Vashyam (From the "word" emerged Influence)
Vashyathil ninnu vishwasham (Influence led toTrust)
Vishwashathil ninnu Vinayam (From Trust came Humility)
Vinayathil ninnu Vivekam (Humility led to Maturity)
Vivekathil ninnu Vigyanam (Maturity led to Knowledge)
Vigyanathil ninnu Varumanam (From Knowledge came Wealth)
Varumanathil ninnu Varuthi (Wealth led to Acceptance)
Vaakil srishtiyudeyum samharathinteyum shakti yundu, vaaku noki prayogikuka

Word can make or break, use it carefully.

Words that our friend Sreesanth and youngsters could keep in mind.