Wednesday, November 02, 2011
The 3 Things That Steve Jobs Taught Us About Creative Leadership
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Saturday, October 16, 2010
Lead Like Winston Churchill

As the battered British nation stood alone against the vicious and victorious Nazis, Winston Churchill, with no resources other than his vision of the future and his courage, refused to be defeated.
Seventy years and one World War victory later, it’s easy to forget that when Winston Churchill became Prime Minister of the United Kingdom, the British looked to be finished as a going concern.
Two weeks after Churchill came into power, France was knocked out of the war, and 340,000 British troops had to scramble to escape over the beaches at Dunkirk. The Germans had absolute control of all of Europe. It seemed impossible that Britain could survive.
In May 1940, when there seemed to be almost no hope left, the nation turned to Winston Churchill, who until a year earlier, was a political has-been and widely considered a crackpot for saying nasty things about Adolf Hitler and the Nazis. Churchill had been the one man who had spoken the truth for years, even though it cost him in terms of political success and personal reputation.
Churchill’s first speech to the British people as PM laid out his program bluntly, “I have nothing to offer but blood, toil, tears and sweat.” He followed that with another speech shortly thereafter: “. . . we shall fight on the seas and oceans, we shall fight with growing confidence and growing strength in the air, we shall defend our island, whatever the cost may be, we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills; we shall never surrender.”
In other words, his plan for success: Complete and total defiance.
“We shall never surrender.” When you have nothing left but defiance, commit to it with everything you have. Like Prince Hal in Shakespeare’s Henry V, Churchill used language to rouse the fighting spirit he believed was still alive in the British people, saying, “If you’re going through hell, keep going.” And the line that summed up his personal career and the spirit that led the British people to victory: “Never, never, never give up.”
Churchill would later describe what he did this way, “It was the nation and the race dwelling all round the globe that had the lion’s heart. I had the luck to be called upon to give the roar.”
He was right about the lion’s heart. Within months, the Luftwaffe would duel the Royal Air Force in the Battle of Britain. The RAF was badly outnumbered by its German opponents, but that didn’t stop it from beating the Germans day after day, month after month. Finally the Germans admitted defeat by changing tactics and began the Blitz, the strategic bombing of London and southern England.
Londoners proved Churchill’s lion’s heart remark again, taking care of each other in the tube stations during the air raids while firefighters made sure that St. Paul’s survived the bombing.
As we emerge from the Great Recession of the last few years, it’s good to remember things could be a lot worse. Take a few pointers from Churchill as you try to lead your organization into recovery:
Remember that “Attitude is a little thing that makes a big difference,” as Churchill said.
No matter what kind of shape your business is in, if your attitude is never, never, never give up, you stand a much better chance of succeeding. The folks you work with will pick up on your sincerity and conviction, and they’ll begin to operate the same way. And it will enable all of you to take the difficult steps necessary.
Be absolutely honest. Has any organization’s leader ever been blunter than Churchill when he told his desperate countrymen that he had nothing to offer them “but blood, toil, tears and sweat”? If Churchill could be that forthright as he faced annihilation, you can be too, no matter what it is you’re facing. So . . . never surrender. If you need to:
- Declare bankruptcy and reorganize, do it.
- Renegotiate debt and lines of credit — what are you waiting for?
- Innovate in the making of your products and services — get to it.
- Be straight with “your people”: shareholders, customers, and employees.
For Churchill and England surrender was not an option, which freed Churchill to do whatever he had to do, including making some brutally harsh decisions. As the Battle for France raged in May 1940, French leaders begged Churchill for British air support. But the RAF’s commanders told Churchill that it was urgent that they conserve their fighters for the anticipated battle in their own skies. Churchill left the French to fend for themselves and held back the fighters, positioning the RAF for its triumph in the Battle of Britain.
Support innovation. Churchill had been one of the early backers of tanks, hoping they could be deployed in World War I to break the awful stalemate of trench warfare. In 1944, he would champion the use of artificial harbors called mulberries — cement-filled ship hulls that could be sunk where needed to create instant harbors for troop deployments and supplies.
But the most innovative and most important thing Churchill supported was a British invention: radar. The Brits created a number of radar stations in southern England to use as an early-detection system, and coupled it with a brilliant fighter-command system that allowed the RAF’s air marshals to dispatch fighters where and when they were needed. Radar went a long way to neutralize the Germans’ gigantic superiority in numbers. (The Brits, at Churchill’s urging, shared radar’s secrets with the United States, and the Americans put it to very good use as well.)
Once America entered the war, as Churchill later confessed in his history of World War II, he knew that the Germans would be defeated. But for nineteen months, Churchill had to rally a beaten people against an unstoppable foe. How did he do it? He understood the people he was leading — and he understood what it was they wanted, what it was that the Nazis were trying to destroy. He said, “All the great things are simple, and many can be expressed in a single word: freedom, justice, honor, duty, mercy, hope.” He was able to lead because he knew the people he was leading and never separated himself from them. He was, quite literally, willing to die for them.
Most managers aren’t asked to be that willing. But your commitment should be close to Churchill’s — as close as you can get when the situation is not life-and-death. If you haven’t got that commitment, maybe you should be looking for another line of work.
Just in case you were asleep for a large portion of the 20th Century (or were born very late in it), I’ll catch you up on what happened to Mr. Churchill. After saving his country from the brink of destruction, Churchill was forced out of office by a vote of the British people just before the end of the war in 1945.
Churchill was hurt but showed the classic British stiff upper lip by saying, “History will be kind to me for I intend to write it.” Write it he did, a six-volume history called The Second World War, which was the primary reason he won the Nobel Prize for Literature in 1953.
But history was going to be kind to him whether he wrote it or not. The British people returned him to the office of Prime Minister, 1951-1955. Queen Elizabeth offered to create Churchill as Duke of London, but he declined. In 1963, by an act of the U.S. Congress, he was the first living person named Honorary Citizen of the United States.
When Winston Churchill died on January 24, 1965 at the age of 90, the Queen decreed that he should have a state funeral, the first ever in English history for a non-royal. The former has-been and crackpot had journeyed a very long way on the strength of his courage and commitment.
source: http://blogs.forbes.com/geoffloftus/2010/09/30/lead-like-winston-churchill/
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Sunday, July 12, 2009
6 important financial lessons from the King of Pop
The King of Pop died. Michael Jackson may go down in the history as one of the most successful entertainers the world has ever seen. The world will remember him for his albums “Thriller”, “Dangerous”, “Black or White”; or his various controversies and lawsuits; or his ranch “Neverland”. But, I think the world may also remember for the huge debt he left unpaid.
While dying at an early age of 50 years, he reminded us of some very basic but extremely important lessons in personal finances.
Let us look at each of these lessons:
- Income, assets, expenses and liabilities are the four most important components of one’s personal finances. Whereas he did a great job with income and acquisition of some income generating assets, the liabilities and expenses did him in. However much you have on the income or assets sides, the expenses and liabilities can wreck havoc.
- When one gets financial success at a very early age, it is important to check whether the same is sustainable. Projecting the current income assuming the same will continue could prove to be a costly mistake. This is especially true in cases where the income is on account of natural talent rather than acquired skill. The difference between the two is “hard work”. Whereas natural talent may not have to work very hard to get success, acquired skill requires lots of perseverance. It is this ability to continue sweating it out that helps when one passes through bad times.
- Extrapolating the current income into the future is a common disease among many. Human beings are by nature optimist about their own future. Such a tendency often leads one to upgrade the lifestyle to such levels that it becomes impossible to fund it through one’s income. Then one resorts to debt. Debt, while giving instant access to cash, increases the cost of living through interest payments. The year 2008 came a rude shock for many, who had projected their income to grow and borrowed for houses larger than they needed. It was just stretching one a bit. In 2008, job security became a foreign word, incomes were cut and some people went through extremely tough periods.
- Your possessions are not your assets. A huge house, the latest car, designer dresses and accessories may increase your social acceptance. But somewhere you need to stop. All may not be lucky to find support from friends and relatives when the party gets over.
- How does one know whether a possession is an asset or not? The answer is simple – an asset has to pass at least one of the two filters: ability to generate income above the cost of servicing or possibility of price appreciation in future. And, the appreciation part should be explained by economics and not wishful thinking.
- How much one borrows needs to be a function of one’s ability to service the debt. Only the Governments are privileged to borrow to repay old debt. Individuals must stay away from the debt trap.
Let us learn the personal finance lessons from one of the finest entertainers in the history. May his soul rest in peace!
Source: http://moneycontrol.com/india/news/mf-experts/6-important-lessons-fromkingpop/405946
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Wednesday, November 19, 2008
Good one! please think over it....Current state of India
An Old Story:
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter. The Grasshopper thinks the Ant is a fool and laughs & dances & plays the summer away.
Come winter, the Ant is warm and well fed. The Grasshopper has no food or shelter so he dies out in the cold.
Indian Version:
The Ant works hard in the withering heat all summer building its house and laying up supplies for the winter.
The Grasshopper thinks the Ant's a fool and laughs & dances & plays the summer away.
Come winter, the shivering Grasshopper calls a press conference and demands to know why the Ant should be allowed to be warm and well fed while others are cold and starving.
NDTV, BBC, CNN show up to provide pictures of the shivering Grasshopper next to a video of the Ant in his comfortable home with a table filled with food.
The World is stunned by the sharp contrast. How can this be that this poor Grasshopper is allowed to suffer so?
Arundhati Roy stages a demonstration in front of the Ant's house.
Medha Patkar goes on a fast along with other Grasshoppers demanding that Grasshoppers be relocated to warmer climates during winter .
Amnesty International and Koffi Annan criticize the Indian Government for not upholding the fundamental rights of the Grasshopper.
The Internet is flooded with online petitions seeking support to the
Grasshopper (many promising Heaven and Everlasting Peace for prompt support as against the wrath of God for non-compliance).
Opposition MPs stage a walkout. Left parties call for 'Bengal Bandh' in West Bengal and Kerala demanding a Judicial Enquiry.
CPM in Kerala immediately passes a law preventing Ants from working hard in the heat so as to bring about equality of poverty among Ants and Grasshoppers.
Lalu Prasad allocates one free coach to Grasshoppers on all Indian Railway Trains, aptly named as the 'Grasshopper Rath'.
Finally, the Judicial Committee drafts the ' Prevention of Terrorism Against Grasshoppers Act' [POTAGA], with effect from the beginning of the winter.
Arjun Singh makes 'Special Reservation ' for Grasshoppers in Educational Institutions & in Government Services.
The Ant is fined for failing to comply with POTAGA and having nothing left to pay his retroactive taxes,it's home is confiscated by the Government and handed over to the Grasshopper in a ceremony covered by NDTV.Arundhati Roy calls it ' A Triumph of Justice'.Lalu calls it 'Socialistic Justice '.
CPM calls it the ' Revolutionary Resurgence of the Downtrodden '
Koffi Annan invites the Grasshopper to address the UN General Assembly.
Many years later...
The Ant has since migrated to the US and set up a multi-billion dollar
company in Silicon Valley ,
100s of Grasshoppers still die of starvation despite reservation somewhere
in India,
.
.AND
As a result of loosing lot of hard working Ants and feeding the
grasshoppers,
.
.
.
.
.
.
India is still a developing country?!!!
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Thursday, September 18, 2008
What is Sub-Prime Crisis - A Good Article
| What is a sub-prime loan? |
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In the US, borrowers are rated either as ‘prime’ - indicating that they have a good credit rating based on their track record - or as ‘sub-prime’, meaning their track record in repaying loans has been below par. Loans given to sub-prime borrowers, something banks would normally be reluctant to do, are categorized as sub-prime loans. Typically, it is the poor and the young who form the bulk of sub-prime borrowers.
| Why loans were given? |
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In roughly five years leading up to 2007, many banks started giving loans to sub-prime borrowers, typically through subsidiaries. They did so because they believed that the real estate boom, which had more than doubled home prices in the US since 1997, would allow even people with dodgy credit backgrounds to repay on the loans they were taking to buy or build homes. Government also encouraged lenders to lend to sub-prime borrowers, arguing that this would help even the poor and young to buy houses.
With stock markets booming and the system flush with liquidity, many big fund investors like hedge funds and mutual funds saw sub-prime loan portfolios as attractive investment opportunities. Hence, they bought such portfolios from the original lenders. This in turn meant the lenders had fresh funds to lend. The sub prime loan market thus became a fast growing segment.
| What was the interest rate on sub-prime loans? | ||
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Since the risk of default on such loans was higher, the interest rate charged on sub-prime loans was typically about two percentage points higher than the interest on prime loans. This, of course, only added to the risk of sub-prime borrowers defaulting. The repayment capacity of sub-prime borrowers was in any case doubtful. The higher interest rate additionally meant substantially higher EMIs than for prime borrowers, further raising the risk of default.
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The housing boom in the US started petering out in 2007. One major reason was that the boom had led to a massive increase in the supply of housing. Thus house prices started falling. This increased the default rate among subprime borrowers, many of whom were no longer able or willing to pay through their nose to buy a house that was declining in value.
Since in home loans in the US, the collateral is typically the home being bought, this increased the supply of houses for sale while lowering the demand, thereby lowering prices even further and setting off a vicious cycle. That this coincided with a slowdown in the US economy only made matters worse. Estimates are that US housing prices have dropped by almost 50% from their peak in 2006 in some cases. The declining value of the collateral means that lenders are left with less than the value of their loans and hence have to book losses.
| How did this become a systemic crisis? |
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One major reason is that the original lenders had further sold their portfolios to other players in the market. There were also complex derivatives developed based on the loan portfolios, which were also sold to other players, some of whom then sold it on further and so on.
As a result, nobody is absolutely sure what the size of the losses will be when the dust ultimately settles down. Nobody is also very sure exactly who will take how much of a hit. It is also important to realize that the crisis has not affected only reckless lenders. For instance, Freddie Mac and Fannie Mae, which owned or guaranteed more than half of the roughly $12 trillion outstanding in home mortgages in the US, were widely perceived as being more prudent than most in their lending practices. However, the housing bust meant that they too had to suffer losses — $14 billion combined in the last four quarters - because of declining prices for their collateral and increased default rates.
The forced retreat of these two mortgage giants from the market, of course, only adds to every other player’s woes.
| What has been the impact of the crisis? |
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Global banks and brokerages have had to write off an estimated $512 billion in sub-prime losses so far, with the largest hits taken by Citigroup ($55.1 bn) and Merrill Lynch ($52.2 bn). A little more than half of these losses, or $260 bn, have been suffered by US-based firms, $227 billion by European firms and a relatively modest $24 bn by Asian ones. Despite efforts by the US Federal Reserve to offer some financial assistance to the beleaguered financial sector, it has led to the collapse of Bear Sterns, one of the world’s largest investment banks and securities trading firm. Bear Sterns was bought out by JP Morgan Chase with some help from the Fed.
The crisis has also seen Lehman Brothers - the fourth largest investment bank in the US - file for bankruptcy. Merrill Lynch has been bought out by Bank of America. Freddie Mac and Fannie Mae have effectively been nationalized to prevent them from going under.
Reports suggest that insurance major AIG (American Insurance Group) is also under severe pressure and has asked for a $40 bn bridge loan to tide over the crisis. If AIG also collapses, that would really test the entire financial sector.
| How is the rest of the world affected? |
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Apart from the fact that banks based in other parts of the world also suffered losses from the subprime market, there are two major ways in which the effect is felt across the globe. First, the US is the biggest borrower in the world since most countries hold their foreign exchange reserves in dollars and invest them in US securities.
Thus, any crisis in the US has a direct bearing on other countries, particularly those with large reserves like Japan, China and - to a lesser extent - India. Also, since global equity markets are closely interlinked through institutional investors, any crisis affecting these investors sees a contagion effect throughout the world.
Source: By forwarded E-mail.
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Tuesday, September 02, 2008
Ratan Tata's words of inspiration
today's environment:
I think it's a tougher environment from what it was about 15 years ago. The demands are far greater, many of the sectors are moving faster, and technology change is quicker. The luxury of having time to make decisions no longer exists. Decisions need to be taken faster and, unlike in the past, they have to be based on more on information and less on intuition. The impact of wrong decisions is greater today. Furthermore, people today are, if I might say so, more opportunistic, materialistic and rebellious. So you are managing a different type of environment: less protected, less feudal, and more demanding in terms of speed, in terms of technology.
On employees:
The way to hold employees today is to make their work and their day-to-day activities in the company exciting enough for them to stay. Not everyone will stay, but I think if we can empower more people and are willing to pass on the responsibility for that, and if people are satisfied and motivated, there's less chance of them wanting to leave and go to a competitor.
low-cost products:
It should not be, cannot be, that low-cost products come to mean inferior or sub-standard products and services; definitely not. The aim is to create products for that larger segment -- good and robust products that we are able to produce innovatively and get to the marketplace at lower costs.
On customers:
We should be treating the customer in the same way that we would want to be treated as customers.
On business:
Business, as I have seen it, places one great demand on you: it needs you to self-impose a framework of ethics, values, fairness and objectivity on yourself at all times. It is easy not to do this; you cannot impose it on yourself forcibly because it has to become an integral part of you.
feedback:
Market feedback is very important, but it has to be stripped of its colour. You have to be able to strip away the vested interest or the bias that sometimes comes in. You have to view it objectively, not defensively.
This was take from rediff.com. You can find the details at:
http://specials.rediff.com/money/2008/aug/26sli3.htm
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Thursday, August 07, 2008
Businesss Rules
I found some business rules while browsing thru some business magazines. I hope, these rules may help you out in your personal life and your work environment.
They are as follows:
Rule One: CHECK YOUR EGO AT THE DOOR
In order to keep dialogue open, realize you don’t know everything. Without a heightened awareness of the development of your own ego, healthy characteristics and unique, powerful talents can become destructive and degenerate into weaknesses.
Rule Two: CREATE CURIOUSITY
What you currently know sometimes gets in the way of what you need to
know, but don’t know. Be a sponge for information and use it to refresh your experience and knowledge rather than allowing yourself to feel as if new information puts you at risk.
Rule Three: MOVE OFF THE SOLUTION
Don’t prematurely focus on the solution itself. You need to get to the underlying business issues and work from there. Remember, a solution is worthless unless and until it creates business value, prevents a problem or invents a new result the business needs. Otherwise, a solution ismerely an event.
Rule Four: GET EVIDENCE
Some of the best businesspeople ask the obvious questions, the answers to which are almost never obvious. In fact, it’s the obvious questions or the politically sensitive questions that many are afraid to ask. Collect soft evidence and then turn it into hard evidence that the business can measure.
Rule Five: CALCULATE THE IMPACT
Businesspeople never let cash out the door that doesn’t strictly ultimately bring more cash back. You must convert hard evidence into a financial equivalent; a move from ‘the could’ to ‘the should’ that shows the basic economic return.
Rule Six: EXPLORE THE RIPPLE EFFECT
It is imperative to figure out who or what else in the company is affected by the current problem or the opportunity under consideration. The people who get sucked into isolated and exclusionary thinking lose sight of the big picture of the business as a whole.
Rule Seven: SLOW DOWN FOR YELLOW LIGHTS
If the problem or opportunity is so big, ask what has stopped us in the past from doing something about it, and what could stop us in the future. If
you get a yellow light early, take your best shot at resolving it. Even if you fail and get to a red light, you’ll have saved time and money at the very least.
Rule Eight: FIND THE CAUSE
Simply asking why will give you the tools to dig for the underlying reason for the problems, and to make sure you’re treating the source, rather than the effects. Having proof you need a solution (the effects), and knowing what solution you need are two different things.
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