“The AAP Effect”

The election season in India is on. One of the novel feature of this election is the impact of newly formed Aam Admin Party (AAP) in the political landscape.

The most significant achievement of AAP is the speed in which this party has come to so much of attention and relevance in the political process. It is too early to conclude its ability to reach positions of power and to hold on to it on the basis of what it delivers. However it has made significant contributions to the democracy in India.

Firstly it managed to shake up the established parties and their leaders by raising a number of questions; especially relating to corruption. It reminded them that the electorate cannot be taken for granted. This shake up has to some extent brought upfront the importance of addressing corruption in public life. I don’t believe this will result in a complete clean up. But it may to bring some moderation and more seriousness about the way government manages its finances; monitoring the quality of outcomes and its benefits to the society.

Secondly it has reversed the trend of decreasing participation of the common man in the electoral process. A large cross section of the society had moved away from participation in elections and voting because they were disgusted at what they experienced and felt that there is no point in any kind of involvement.  But today we see reversal of this trend.  We see active interest among many of the former disbelievers. More importantly we see many more good and educated professionals joining the fray with a commitment to make a contribution to the society and not just for private gains.

Third contribution it has made is the passion it has ignited among the youngsters. Recently I attended a function which was primarily meant for the youth. One of the speakers asked two questions to the audience. To the question on how many have voted in any elections there were hardly any raised hands. But when they were asked how many would vote in the coming election, the majority raised their hands.  I am sure this larger participation can only mean good for the society.

Is this going to usher a new era? Are we going to see a complete clean-up of political system? While I am excited about the reversal of the trend I am not sure of the sustenance and scaling of the collection of good people to overthrow the bad. This is because the very nature of the good people has the inherent fault line that could lead to its implosion. Remember the Janata Dal which came to power soon after emergency. What a great collection of statesmen and professionals. It failed from within without completing its first term.  

I had written a blog on this problem of “Good being Bad” I have reproduced it below for convenience.

To be or not to be  –Of Good being Bad

In the first part of this article I discussed about how any system of governance will always have a mixture of ‘good’ and ‘bad’ use of the system. I have used the word “good use” and “bad use” in a figurative way. Good use is when the system is used for the larger good of the humanity and bad use naturally its opposite.

The relative proportion of good and bad in the society is determined primarily by the value system of the majority. The natural tendency of this mix is to gradually degenerate with the proportion of bad getting more and more; the bad drives out the good.

This is similar to the income distribution and its shift in a society. In a society however evenly distributed the wealth is to begin with, eventually the mix becomes skewed with smaller percentage of the society controlling larger part of wealth.

The question is not whether it will degenerate. But how long it will take! Some social shocks and scams may cause periodic correction of this degeneration and eventually the society/ civilization degenerates to its cyclical low. May be the cycle will start all over again.

One of the key contributors of this degeneration is the inaction by the good. As the proverb says; “the best thing that the bad can expect is the good to do nothing”

The greatest tragedy is that the people who want to use the system for their private agenda (let is refer to them loosely as the bad people) have some of the good traits that help them prosper and the people who want to use the system for the larger benefits of the society (let us refer to them as the good people) have some of the worst traits that weaken them. Let us take a deeper look at these qualities.

Co-operation

The bad people are generally too happy to co-operate with anybody so long as that co-operation brings them power or wealth or both.

The good people generally carry a chip of honesty on their shoulder that they seldom co-operate even with people with similar value system. They believe that their goodness is one step higher and they are ready to dump and run if the other guy doesn’t play along exactly as he feels is right. In fact they almost make such renunciation a virtue.

Courage

The bad normally has the courage and with impunity cooks the account books /investigation/ assessment or any administrative process for their gain.

The good is often scared to take bold decision and hides behind rules and technicality. The obstructive bureaucracy is often a result of such cowardliness and not just self serving actions of the bad.

Power of Interpretation

The bad will interpret laws and technicality so long it meets its end or favors an ally.

The good often tries to interpret with limited appreciation of what it stands for; by the time they finish splitting the hair it fails to be achieve any good.

Sacrifice

The bad is capable of sacrifice for what it stands for. Sacrifice its principals, society, environment and much more.

Good will hold onto technical correctness, its pride and prejudice even at the cost of its ultimate benefit to the society

Loyalty

The bad often demands and commits substantial loyalty to its partners so long as such loyalty is rewarding. They are willing invest in this loyalty for quite some time.

The good often has little commitment to his partners if it feels that their goodness is not of the same type. They are willing to abandon and run and not pull together.

Risk taking

The bad is willing to take its risk, because they see potential reward in taking risk.

The good is often too risk averse. The potential reward for sticking the neck out could be some brickbats. With no upside benefit for self and downside uncertain and costly, the good normally avoid getting involved.

Now we ask the question “How good is good”. There is a saving in our tongue which translates to “the good often bears the fruits of the bad”

I do agree there are many ‘good’ who are as good as the ‘bad’ and it is through them that we have gained anything.

What we need to do to avoid/delay of decay of our society is to develop a willingness to learn the ‘good’ from the ‘bad’, stick together and support each other for what we stand and not be a utopian island of fruitless good.

Willingness to co-operate, to take risks, to take a position, to believe in the intention of the fellow good, not to be cowed down by oppositions and mild differences in styles and not to run away to our comfort zones is what is needed today.

There is high probability that the future of AAP could end up be like this. The party is already showing signs of this internal fault line. If this happens it would be a loss to the democratic processes


"It seemed the world was divided into good and bad people. The good ones slept better while the bad ones seemed to enjoy the waking hours much more" Woody Allen

Some People All the Time.. Humour

Major Desai retired from the army and returned to his hometown. Many people wondered with the kind of network he claimed to have and the heroism in the wars that he boasted about why he did not go further up at least to be a brigadier. As per him he had got bored of being in the army and hence he decided to quit and be back where he belonged. Of course there are few skeptics who raise their eyebrows on this claim. Maybe they are just jealous of his charm and popularity; especially with the Municipal commissioner and the local Sub Inspector who are his drinking buddies.

In the second month after he returned home, his neighbor came and asked him whether he had any way to find out the results of the soldier selection in Indian Army, Neighbor’s son had appeared for the selection. Major Desai remembered that one of his old buddies Havildar Sharma from the army may be able to find out about the results. Havildar Sharma helped him and gave him list of all the five young lads who qualified from Major Desai’s home town. Major promptly informed all the five families and they were all impressed by the ‘connects’ Major Desai had. Now for the whole town Desai became Major Saab.

In the next selection season many parents approached Major Saab in advance to seek help for their lads. He offered to help on two conditions. He will first evaluate these lads as he would not like to recommend nincompoops to the Army. He should be given Rs 1 lac in advance for each lad who passes his evaluation. The money was not for him; but to make some in the selection committee happy! But he promised that he would return the money of those who do not get selected.

He interviewed about 30 lads and agreed to recommend for 10. When the selection team came to town he was there at the ground where physical examination was being held. He walked up to Captain who was the team leader shook hands and introduced himself. They had few army jokes to share. Major Saab of course knew by name many a colonels and brigadier’s who were his ‘batch mates’. Capt was impressed. The lads from his town saw Major Saab pointing his hands in their direction and were convinced that he had put in a word to the captain. Actually, Major Saab was describing the story about the temple that was behind the ground in the same direction as the prospective soldiers were standing. After these pleasantries Major Saab returned home.

When the selection process was completed, Havildar Sharma informed Major Saab in advance, before the results were announced, about the outcome. Seven lads from his town were selected. Out of these, five were from the lot who paid him. He met the parents of the other two and told them that they would not be selected unless some action is taken immediately. He asked for Rs 2 lac for each with the promise that he would return the money if they were not selected. Of course they were selected Five out of the original 10 who had paid him were also selected. Major Saab was a gentleman. He returned 1 lac to all the five who did not get selected. He made sure that every other person in the town knew about what he did for the lads of the town. Municipal commissioner arranged a felicitation ceremony in his honor.

Major Saab is not an exception.We come across some in all walks of life. When the stakes are high very often Major Saabs appear to manage a lead. Most of us have a small Major Saab hiding in us too, though we feel ashamed to let him loose. But then it is for us to choose! 


Shame is like everything else; live with it for long enough and it becomes part of the furniture. SALMAN RUSHDIE,

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“It is elementary my son” (humour)

One of my friends mailed me this funny story. Once upon a time on a cold wintry morning a sparrow was out from his comfortable nest looking for few morsels to fill his stomach. It was too cold and the wind was so harsh, that the sparrow fell down almost frozen. He was lying there helpless. Then a bull passed by and pooed on him. The hot manure warmed the little sparrow and he felt very comfortable. He was happy and he started to sing. A cat heard the song and it found the sparrow relaxing in the warm poo and it pulled the sparrow out of the poo and ate him up.

There are four morals we learn from this story.

i) Those who shit on you may not be your enemies: In our life and career, there will be many instances when the action of somebody will harm, belittle or demean us. Very often it may not be intentional; but just coincidence or matter of his survival. If we look from the other person’s point of view, there may be extenuating circumstance if not genuine reason. Sometimes it could be their revenge or they could be absolute a--holes. Whatever be the reason we suffer and we feel hurt.


The important thing is that we need to survive this assault, this insult or this harm. If we get caught up in the anger and spent our time in planning for revenge, we waste our time, our effort and our health which otherwise could be channelized for towards more fruitful end.


If we are in a situation where we have to deal with with unadulterated a—holes, it is better to kick them out or get out from such a place. (The book “No Asshole Rule” by Robert I. Sutton makes an interesting reading on this topic)


On the other hand, if we hurt somebody (specially their ego) we need to keep in mind that most humans love to get back and take revenge. If we want to avoid escalation of this conflict, we should either try to patch up or make sure that we are not in the line of fire of they won’t dare to react :-).


ii) Those who take you out of shit may not be your friend. When we are down and out, many of our old friends may not take a second look at us. Then we come across somebody who is keen to deal with us. We feel thankful and obliged. May be they are good Samaritans; maybe they are trying to take advantage of our plight or weakness. Even if it is genuine good will, don’t overstay our welcome; else he may not remain our friend

We need assess the situation dispassionately. The temporary setback should not make us succumb to any deal. The failure or loss in one arena does not diminish our value in all spheres; there is no need to feel defensive and no need to negotiate from an area of weakness. We negotiate based on what we are good at and more so based on our faith in ourselves.


iii) When you are in deep shit, keep your mouth shut: Some of us are very trusting, which is very good if we mix it with prudence. When the chips are against us, we need to be more careful about what we share, what we complain about, what we cry out loud about, or what challenges we broadcast or whom we trust. Discretion becomes all the more critical or else we give us away.

iv) Eventhough it may provdie some comfort shit is still shit:  Very often when we indulge in actions that are illegal, currupt, unfair or unscrupulous we may derive certain money, fame, pleasure and comfort. But if we decide to wallow in this shit, one day it is going to catch up. Remember the big cats know where to look for.
“I consider it a mark of great prudence in a man to abstain from threats or any contemptuous expressions, for neither of these weaken the enemy, but threats make him more cautious, and the other excites his hatred, and a desire to revenge himself” Niccolo Machiavelli

Taming the Corruption Tiger

Corruption (‘private gain at public expense’) has always been a matter of concern for the mankind since time immemorial. Many people love to eliminate this completely; but this is a disease which we may never be able to eradicate totally.

We see wide disparity in the level of corruption across the countries. Transparency international undertakes an annual survey and publishes Corruption Perception Index (CPI) of countries. No single country has ever got the perfect score of 10. Only five countries out of 182 get score above nine, 23 above seven and 47 above 5. India with a score of 3.3 has a rank of 87 which falls in the middle.

One of the interesting revelations of the CPI is the strong correlation between human development, economic progress and CPI. Is it that the economic progress reduces the incentive for corruption or the low corruption facilitates economic progress? It is both. There is a strong mutual dependency between economic progress and CPI. Chile is one of the few countries  that has managed to move from being a developing country to an almost developed country in the last few decades. Chile is also one of the very few developing countries with a high CPI score (7.2) giving it a rank of 21, which a level USA.

Corruption is a part of human nature. What can control it are the mechanisms in place to restrict it. The legal infrastructure and the strength of enforcement determine how easy it is to get away with corruption. (I don’t deny the influence of culture in corruption. But I strongly believe that this culture of corruption is not hardwired into the brain of certain class of people making them more corruption prone. Some people may find it easy in comparison to others to behave with less civic sense and in more socially unacceptable manner. Strong enforcement and an environment that is conducive can limit this cultural bias and bring about better discipline. Denmark today with a CPI score of 9.3 is the world topper. Remember the famous quote from Hamlet "there’s something rotten in the state of Denmark". Another example from home is the extent of cleanliness and efficiency Delhi metro has managed in its trains and stations which is significantly of higher degree compared to any other public utilities)

We in India have been struggling to manage this high level of corruption. The Anti Defection Law and the Right to Information (RTI) Act definitely help in this direction. The Jan Lokpal Bill has been struggling to get acceptance by the parliament for more than four decades (The recent high profile initiative by Anna Hazare of Civil Society was an attempt to force the government to take a definite action on this) We still don’t have a proper whistle blower protection act.

Legal enablement is definitely a necessary requirement; but, it is not a sufficient condition. Strong Judiciary can ensure justice; but, today we have a serious problem of a large number of pending cases blocking the judicial machinery. “Justice thus delayed is Justice denied”. RTI is an excellent tool to bring about transparency. But the resource constraints can prevent this from scaling up.

When we look at the disparity in the level of corruption across countries, the major differentiator is the extent of corruption and inefficiencies in the areas that affect day-to-day life of the citizens, whether it is to get some clearance, approval or certificate or to run their business. Corruption in high places and in areas with high stakes is the most difficult to control anywhere in the world. But if we manage the former, 90% of the irritant value may be removed for the society as a whole. When we take care of this petty corruption, it may also help to bring to open high-end corruption because  the dealing hands have all the incentive to blow whistle as they do not benefit from corruption anymore and thus no more are they partners in crime.

Today the progress in information Technology provides us with significant opportunities to improve governance processes. IT enabled Governance (IteG) can help improve process efficiency, it can help in bringing about better transparency, it can measure performance efficiency and publish the same, it can provide analytical support for risk management, it can reduce leakage and so on which are all elements that can bring about improvement in governance and reduce opportunities for corruption.

It will also help easy outsourcing of service delivery without loss of control enabling government to focus on policy making and policy administration. The income Tax Department’s outsourcing of PAN issuance, the Ministry Company Affairs online initiative and the Ministry of External Affairs initiative of Passport Processing etc are examples of successful implementation of this model. In each of these case we have witnessed significant improvement in turnaround time and elimination of petty corruption.

The IT enabled Governance (ITeG) is still in its early stage. It was not so far away when we could observe the PCs in a typical government department placed at the boss’s cabin with secretary using this as a word processor. Those days are gone. But we still have a long way ahead. Even when a catalytic role is played by some central authorities, it is often limited to budgetary control by purse holders with limited appreciation of the larger role of technology enablement. This is akin to what happens in the corporate sector when the controller (Finance and Administration) is in the driver’s seat as far as computerisation is concerned. What we need is to evolve a nationwide strategy for ITeG and develop a framework for managing ITeG Projects with respect to people, process and technology.


The accomplice to the crime of corruption is frequently our own indifference ~ Bess Myerson

Related reading

Amateur’s tips on e-Governance
Give us the Facts
To be or not to be (Part 1) - The Art of Cooking
The art and ethics of lying - Part II

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Looking for “the One”? A Cynic’s Fantasy

‘Matrix’ is one of my favorite science fiction movies. In this movie, most of the human beings live the life in a virtual reality (the matrix), while their bodies are used as an energy source by the machines that have conquered the earth. A few humans have managed to escape the matrix and build up a resistance movement to break the matrix. The ruling machine class will do everything within their power to suppress this resistance. The movie is about this conflict and confrontation for the right to be free and not be a just a tool for select few!

Sometimes when I look around, I feel that this movie Matrix, to a great extent portrays the real world. The driving force as well as the reason for the existence of ruling class of politicians and business men is Power and Money. The politics mostly focuses on creation of power and the business mostly focuses on creation of riches and they help each other with their specialization and they exchange Power for Money and Money for Power.

They control all the resources. They extract the resources and convert them to products for their comfort or to increase their wealth. The common man treated as nothing but another resource; labor in the production process, the slave at their beck & call and the customer for what they produce which is a way to increase their wealth. They play with their policies so that this large mass of living resource is pacified, subdued and remain docile. The movies, the games, the TV and the religion are all used as means to keep the common man in a state to stupor. Slowly and steadily higher proportion of wealth shifts to this ruling class.

Occasionally we see some making an attempt to better the life of the society at large, to treat common man more fairly, to enable inclusive growth, to stop over exploitation of the earth’s resources, to sustain the environment and to bring about peace and harmony. This initiative is immediately snubbed. Look at some of the recent examples; Anna Hazare and Bhushans of Civil Society, Mr Thomas, former CVC, Mr. G V Ramakrishna and C B Bhave, former chairman of SEBI, Mr Tharoor former Minister, Sanjiv Bhat the IPS officer from Gujarat who has decided to take a position, Sreedharan,cheif of Delhi Metro and a host of not so famous and not so recent examples can be picked from politics, bureaucracy and social service.

Although corruption, fraud, exploitation, murder and terrorism are common currencies used by many (or most?) among ruling classes (both in business and in politics) technical faults, minor errors in judgment and even fabricated stories are blown out of proportion and exploited to suppress those who try to make a difference. I don’t claim these people are completely devoid of any errors. No human beings are. But the difference is that they mostly strive for the good of the society without being driven only by private agenda, their intentions are mostly honorable and they try to do the right thing in their endeavors, .

Unlike in Matrix there is not going to be “the One” with superhuman abilities to save the world. The change can only come from small contribution from each one of us. We need to learn to differentiate between technical faults of those who mean good and shenanigans of those who work to maximize only their private interest. We need to support these few good men instead of indulging in self righteous criticisms about those who try or making excuses for our inaction. We need to support the former, pardon their occasional errors in judgment and support them to go forward and perform. And for this we need to learn few tricks from the ‘bad’. If we don’t learn to do this, there may be no hope in this battle. Take it or leave it…

"What is the reason? Soon the why and the reason are gone and all that matters is the feeling. This is the nature of the universe. We struggle against it, we fight to deny it; but it is of course a lie. Beneath our poised appearance we are completely out of control". Merv the Frenchman in Matrix Reloaded.


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“Half Full or Half Empty?”

Most of the days when we open the newspaper early in the morning, the headlines that stare at us are that of some scam or the other. In the last few months we had Aadarsh Housing Society Scam, Common Wealth Game Scam, Telecom 2 G Scam, Illegal mining scam.

What do we read from this? One way to look at this is to feel disheartened that our society, government and bureaucracy is in a state of continuous degeneration and the world in general and our country in particular is on a slippery slope. A slope that is leading to moral disintegration and anarchy; a modern Sodom or Gomorrah awaiting fire of destruction from heaven!

Another way to look at this is that we have had such scams all these while and the increased activism by citizens, judiciary, and news papers supported by technology tools are help to unearth and unravel more of these. Better reach of news through print, television, internet, blogs, facebook and tweeter is helping better dissemination of these stories far and wide and make many of us aware and alive.

I believe the most powerful of all is the transparency and exposure that could help to bring about better social deterrent and citizen vigilance. This increased transparency could and is becoming some sort of a check to many and could bring about some sort of discipline and moderation in our society.

If we take a deeper look, most of the scams and injustice that will catch the attention of the wider press are those that are sensational and it involves political and bureaucratic elite, celebrities or because it is gory. But what affect the life of the majority are the corruption, callousness and lack of service orientation of the institutions that facilitate our day-to-day life. It could be getting a land title certificate, a birth and death certificate, paying our electricity bill, getting a mistake rectified in by Income Tax Assessment, getting a ration card and due ration against that card, treatment at a government hospital, getting complaint redressed by the police man and so on.

When it comes to areas where stakes are very high, the corruption or lobbying, which is often a sanitized version of corruption, often is there to influence decisions and policies. This happens in most places in the world. But many countries successfully manage to make the life comfortable for our day-to-day needs. This helps to reduce waste of time and gives peace of mind for the common man.

It is in these areas that we are quite backward compared to many others. Is it because we don’t pay the officers and employees a decent wage that they have to resort means of corruption? Is it because we don’t have proper checks and balance in service delivery that deters inefficiency and insensitiveness? Is it because service orientation is not a part of our culture? Or a combination of all?

Citizen activism and exposure can have a larger impact in this area. It is here that the technology tool can be a great support to each of us can play a role in building a social momentum. “I PAID A BRIBE.COM” is an excellent initiative in this direction. It accepts the fact that there are times we have not way except to pay our way through. It gives an option to anonymously present our experience. It also gives us an option to recognize instances where we could get work without bribe or when we got an opportunity to resist.

If a larger cross section of the society joins in such initiatives we will definitely see some results. We don’t have to give too much of our time nor do we have to inconvenience ourselves by being seen as a trouble maker or a whistle blower (which often is bad for the concerned though good for the society as a whole) or be a martyr. We don’t even have to take a moral stand of not paying a bribe to get what we want. We just have to anonymously share our experience and encourage our friends to do so. At the least it will help the next person to find out what the market rate (of bribe) for a service at a certain location. As an economist would say efficient price discovery!

“It is better to light a candle than curse the darkness” Unknown

“Are you being watched?”

Radia tapes controversy is about the tapping of tele-conversations of Nira Radia by the informant agencies, the celebrated lobbyist had with a cross section of powerful people from industry, politics, press and a host of other power brokers. This incident has raised a host of questions.

Is it right to tap private conversations? We can say that when there is serious suspicion about possible legal violations, the law enforcing bodies have the right to eavesdrop to help them in their enforcement or to protect the sovereignty of the country. On the other hand how do we ensure that this right is not misused for political gains and industrial espionage? What kind or processes do we put in place to ensure that this is not a means to suppress dissent and democratic processes?

Then the next question is whether it was right to have leaked this information to public domain? These were not private conversations or business secrets or even some escapades which have no social relevance except for satisfying the voyeuristic inclinations of a perverted few. These were conspiracies by people in power, to defraud the public. Don’t the public have a right to know?

The ‘wiki leaks’ has established a forum for the whistle blowers to bring to light conspiracies, corruption and machinations of very powerful people which otherwise would not have been possible because of possible repercussions. It has got kudos and criticisms.
‘The organization won a number of awards, including The Economist's New Media Award in 2008 and Amnesty International's UK Media Award in 2009. In 2010, the New York City Daily News listed WikiLeaks first among websites "that could totally change the news", and Julian Assange was named the Readers' Choice for TIME's Person of the Year in 2010. Supporters of Wikileaks in the media have commended it for exposing state and corporate secrets, increasing transparency, supporting freedom of the press, and enhancing democratic discourse while challenging powerful institutions. At the same time, several U.S. government officials have criticized WikiLeaks for exposing classified information, harming national security, and compromising international diplomacy.[Human right organizations such as Amnesty International criticized WikiLeaks for not adequately redacting the names of civilians working with the U.S. military. Some journalists have criticized the lack of editorial discretion when releasing thousands of documents at once and without sufficient analysis. Among negative public reactions in the United States, people have characterized the organization as irresponsible, immoral, and illegal.’ [1]

Incidences like this and revelations of this magnitude were once only occasional occurrences. But the progress in technology has gradually been chipping away the concept of privacy and secrecy the way we are familiar.

The ubiquitous availability of electronic communication and electronic recordings are giving a different dimension to private conversations. I am not talking about spying which is still considered illegal (except if it is by the authorities who have the right to do so) I am talking about stronger evidences that can reveal the truth about what transpired in a meeting where you and I were present.

For example, although oral contracts always were recognized by law, it was often difficult to prove the validity of the contract. We addressed this by having more people to participate our discussions who could act as witnesses. But even then it was your word against mine. So in critical meetings we started the practice of signed minutes. But this again had the limitation of doctored minutes, ingenuity of the minute writer and limitation of human memory or event the minutes getting lost. It also could not capture the nuances of the conversations which are discernable only when we listen to the way dialogues were delivered. Now the technology provides us with tools to have voice notes, voice minutes and even video notes. It is perfectly legal and even moral if you are not eves dropping or if you are not sharing it with those who are not meant to have access to it. It is ‘the true minutes of meeting’ that can better represent the truth.

Earlier paper documents could vanish could not be traced and would have been too painful to track. But today the mails and files are stored for eternity at very low cost and computer can help us to trace and track these with ease based on key words, dates and so on.

More and more of our friends are going online and share photos and videos of events where we were a part. More people are going to blog about us, more people are going to study, dissect and publish opinion about what we do. We have limited control over these. The higher we go, the more publically relevant what we do, the more open is going to be our acts of commission and omission.

Wiki leaks and the likes of it are going to make whistle blowing easier. Legal enablement of the right to information reduces our ability to hide and obfuscate under official secrets act. Cheaper storage, stronger searches, powerful algorithm to match and generate profiles will make it easier for anybody to obtain a much better understanding of what we are and what we do. As the Economist observed in an article, Wiki Gaga, “Such freedom may test the limits of democracy, in which rights to speech are balanced by duties to privacy and security” [2]

All these are nudging us to change the way we talk and behave. Be more honest in our dealing and more truthful or at least careful in our uttering and behaviour. Bluffing our way through is not the obvious option any more. When we mess up, remember it may not remain a secret all the time. On the other hand we must also learn to be less judgemental about human follies often revealed out of context in the digital world and learn to forget and forgive

As Jeffrey Rosen, a law professor at George Washington University has pointed ‘Our character, ultimately, can’t be judged by strangers on the basis of our Facebook or Google profiles; it can be judged by only those who know us and have time to evaluate our strengths and weaknesses, face to face and in context, with insight and understanding. In the meantime, as all of us stumble over the challenges of living in a world without forgetting, we need to learn new forms of empathy, new ways of defining ourselves without reference to what others say about us and new ways of forgiving one another for the digital trails that will follow us forever.’[3]

I am not making any value judgement of whether this is right or wrong. I am only pointing out that we are moving towards a more open society and whether we like it or not there is a pretty high chance that what we thought to be confidential may not remain so and we have no option. (Read up “Privacy Fantasies” for some futuristic thoughts on this topic)


“You already have zero privacy - get over it” Scott McNealy, Cofounder of SUN Micro System

1. http://en.wikipedia.org/wiki/WikiLeaks
2. http://www.economist.com/node/16335810
3. The Web Means the End of Forgetting. The New York Times (http://www.nytimes.com/2010/07/25/magazine/25privacy-t2.html?_r=1)

To be or Not to be: Part 6 - The Larger Good ?

I was about 18 years old and I used to be a very active member of a youth group in our area. We had a great bunch of talented guys and girls in this group and we used to have lots of fun cooking up interesting stuff together.

Once we decided to organise a cultural evening; an evening of drama, songs and dance for us to perform and show-off. I was the secretary of the group and played an active role in organising the program. I wanted to use this as an opportunity to get wider participation from the youngsters in the area. So I invited them to participate in the event. Among them there was a girl who was very talented, good looking and a bit arrogant who had never actively participated in our earlier programs except for occasional guest appearances. (Let us call her Monica) I asked her to participate in our cultural evening and she agreed. (May be she could not resist my charm!) She volunteered to be the Master of Ceremonies (MC). She sat through the rehearsals to get a good idea of the various programs, helped us to organise them in a creative sequence and worked out nice introductions for each item which was developed with quite a lot or research to include nice quotes and humorous quips. I was really impressed by the work she did.

On the day of the program, we practiced the whole day and late in the afternoon I went home, had a bath, put on nice clothes and returned to the venue. Then a delegation of few guys from our group who were part of many of the main items for the day, like drama, skit and group songs, approached me.

“We don’t want Monica to be the MC today” Their leader told me.

“Why? She has put in a lot of efforts for this and has done a fabulous job” I replied.

“We don’t care. If she is the MC we will not participate in any programs today”, retorted their leader.

“But you should have expressed your concern earlier. Not at the last moment”

“Nothing doing, it is our decision now”.

I tried my level best to persuade them; begged, pleaded, appealed to their sense of right and wrong and tried to call their bluff. No luck.

If I didn’t heed to their demand many of the items of the day would be cancelled. Many youngsters (in addition to the few who led the anti Monica rebellion) who were part of these programs would be devastated. Also, with the star items cancelled the program would be turn out to be a flop.

On the flip side, if I did heed to their demand, it would be unfair to Monica who had put in so much of effort to knit up a wonderful story line for introductions. Not just that, without the MC, the punch of the program would also be lost; unless I convince her to sacrifice for the greater good, share the story line and get somebody else to do the MC Job.

We can argue the merit of each of these options. Sacrifice many for one? Or Sacrifice one for many? It was double bind, a Morton’s fork; I was stuck between the devil and the deep blue sea.

We face these kinds of dilemmas in our day to day work. Take a few examples; (i) A client comes to us with a complaint. The mistake is ours; but it will be difficult for him to fix it on us. If we accept his demand, there is a cost to the company and one of our colleagues could be in trouble. (Recently Toyota had to go through a similar kind of situation) (ii) We made a goof up in our work. It is easy to bury the mistake and our role in it; but the company will have to pay the price. (iii) We want to push some of our agenda; but one colleague could stand in our way. Should we try to get him out of the company?

Some of us have a simple rule. Choose the option that serves our purpose the most. Some of us want to do what is right. Even this distinction is often blurred and contextual. There are two important factors that will determine whether and when we will compromise doing the right thing. It is the balance between the stakes involved and the strength of our moral conviction in the particular case.

Then what is that could leverage our moral conviction? May be the habit that we develop (Our parents, teachers and Society helped us to develop) would encourage us to choose the right thing most of the times. As Aristotle observed “Moral excellence comes about as a result of habit. We become just by doing just acts, temperate by doing temperate acts, brave by doing brave acts”. If we develop this habit, we will at the least try to reflect for a moment what is right instead of just what we want. When more people think in this manner most of the time, we will have a civilized society.

Sometimes it is difficult to identify what is right. The reasons tell us one and the conviction the other. From time immemorial the thinking man has tried to find a method to figure this out. Mythologies address this question extensively. Yet do we have the answer? When we get “the answer” to this question, I think we will become one with the god; attain the “true nirvana”

Till then it is a search, and that is what we call life ...

About morals, I know only that what is moral is what you feel good after and what is immoral is what you feel bad after. Ernest Hemingway

Soul for Sale

Last week I had a chance to spend few hours with an elderly gentleman and his wife. He is more than 70, still tall and handsome with an extremely winsome smile and an unending repertoire of jokes that he could crack at opportune moments. His wife who is above 60 is full of charm that made it abundantly clear that age can never quite conquer her spirit.

I was able to nudge him into telling his story which turned out to be so captivating that I even forgot to refill my glass.

“I have been always a lucky man” he started off.

“Being the youngest in a big family I enjoyed lot of love and affection and I learned to cherish and value them at a young age though it broke the bread to smaller helpings”

“My father was not a rich man, but with his powerful personality he was able to imbibe in me a strong sense of right and wrong and compassion for fellow living beings”

“When I finished my graduation, I came over to this big city of Mumbai in search of a job. After I finished my interview and was walking along, I saw the board of this professional institution and I decided to walk-in and enquire”

“As luck would have it, the guy whom I started to talk was from my native state and he explained to me everything about how to apply for an admission.”

“I tried hard and got myself an admission; the only problem was how to fund my studies.”

“But I was lucky to get some part time job that I could do before I went to school and after I finished my school”

“Then I started my practice and I realised that one of the key essentials for making lots of money was the skill to fix deals with the various approving authorities”

“I had decided in my life that I will never pay a single penny as bribe even to a policeman on the street”

“For me success was not making lots of money; but making sufficient money and a having a sound sleep”

“I did not have too many needs and I had a wonderful wife who was totally undemanding and utterly dependable”

He looked at his wife and the smile they exchanged had the same intensity of affection that one would sometimes see in a newlywed couple.

“I got many assignments where I could perform without greasing palms”

“I was even an active member of Rotary and even it’s President. I might have been the only member who came for the meeting in a bus as I could not afford a car. I did not find it any demeaning and my many of my fellow members were willing to accept me for what I am worth as a human being”

“When I got two adorable children, my wife left the job she had, to give them a home though the budget did get tighter”

“I have always been quite lucky. Couple of weeks back, with no apparent reason I went for a medical check up and was diagnosed with cancer. It is one of the least harmful varieties and it appears that it is in quite an early stage”

I have narrated only excerpts of his story. I realised that he was not particularly lucky or unlucky. There was nothing unusual or extraordinary about his story. It is just that he was clear in his mind about his priorities, what he considered as success and the price he was willing to pay. He had the usual mix of sorrow and happiness, moments of stress and moments of exhilaration that all of us experience. What made the difference was the equanimity with which he took it all. Looking for the brighter side to be content and lighter side to laugh, looking for opportunities to extend a helping hand. I think this richness of spirit that ran through his life was what made it a spellbinding story; more exciting than the dizzying heights of prominence his son has achieved!

Take a look at the madness that goes around. The definitions of success, lies we are willing to perpetuate and the games we play; Aadarsh housing society, Common Wealth Games, financial skulduggery of our bankers, weapons of mass destruction, unending conflicts at Palestine, WorldCom, Enron, Anderson and Satyam, 9-11, 26-11 the list goes on. We have no qualms in selling our souls for 30 pieces of silver.

For what will it profit a man if he gains the whole world and forfeits his soul? Or what shall a man give in return for his soul? Bible

Games in Perspective

With 38 gold medals, India came up second, just behind Australia, in the Commonwealth Games that was held in October 2010. "Delhi has delivered. The competitions went well, and it was a comfortable, satisfactory experience," said Commonwealth Games Federation President Michael Fennell regarding India's performance as a host.. Both are commendable achievements for India. But, this high profile event also brings to the forefront some lessons worth pondering about.

Last minute heroism: “We have this great Indian culture of doing everything at the last minute. Whether it is marriage or anything else, but we do end up doing it well,” quipped Indian Union Minister S Jaipal Reddy. This is a culture we appear to be developing from our childhood. The school and college folklore is about those 'cats' who managed to 'crack' the exams without studying, attending classes or doing projects. Planned and systematic effort with commitment to milestones are often seen as weaknesses even in workplace. Last minute rush and 'touch-and-go" finish are perceived as mark of genius and heroism. What we often forget are the wasteful efforts, avoidable expenditure, possible risk and  unwarranted  tension for the participants and last minute compromises that result on account of such heroics.

There can be no doubt that one of the contributors of the astronomical cost overrun associated with CWG could also have been this last minute heroism. It was not just the cost; there was terrible loss in reputation for India in the world stage which almost led to boycott of the games by many nations.

Blatant Corruption: There are serious concerns of financial bungling and corruption; not just incompetence, but willful malpractices. I don’t think this financial mis-handling is an exception. The team that was put in place to manage the games cannot be in any way more in-efficient or more corrupt than the leaders of  many other large projects. The prime difference in this case is that it was a very high profile event (or that some were unlucky to get caught?). It again highlights the need to have more transparency and better accountability in public expenditure. A vision as a country we need to aspire for is a vision to improve our rating in corruption index and not just increase in medal tally.

It is heartening to note that some actions are being taken to identify the culprits. I hope this will not end up as temporary eyewash.

Sensational Journalism: The press played a remarkable role in bringing to public attention the bungling and corruption that took place. But often the press gets carried away and give gossips, exaggerations, innuendos and aspersions more importance than it deserves and fails to place facts in perspective. Looking through the press reports and TV coverage up till the opening ceremony, I got a feeling that we have messed up the games so badly that it would be a total failure and a national shame.

But what I saw in the TV, what I read in the press and the narration of those who witnessed and experienced the conduct of the games gave a comfort that the implementation had a certain quality that we can feel proud of. The medal tally could also be an expression of a resurgent India. First time in history we came second, ahead of England.and Canada

The news reports focused more on the warts and putrefying sores with practically no reference to anything positive till the games opened. I agree, it is important to play the role of a whistle blower but it is also important to recognize the efforts of many officers, laborers, volunteers and athletes who gave their wholehearted best with no malice in their hearts.

This again is nothing unique about CWG. What sells in media both in press and in TV is sensationalism and it has become the fashion. A sense of balance or willingness to place facts in perspective seems to be losing its glamour and a yellow hue appear to getting more popular.

“Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.” Marcus Aurelius

“Rule of Law”

“Vendor Lock-in” is a major concern for any buyer, especially if the product/ service procured is of high value and has long-term implication on future procurement. The concern is quite natural and justified because if the product/ technology has locked-in the buyer, it is quite possible that the seller could use this dependency to extract more than what is fair.

There are quite a lot of discussions on this topic and there are quite a lot of strategies that try to address this. The mirror image of this is the “buyer- squeeze”. In this case the buyer who has significant market power can use the market power to squeeze the vendor to extent that he really may really bleed to death. (take a look at "Market Power & Relationships" for a discussion on Market Power in interpersonal relationships)

Different companies address this problem in different fashion. Some try to avoid over dependency on single buyers; some try to build in strong contracts and so on. One of the most difficult buyers in this respect can be government; especially because of the buying power and the plea of executive necessity. If the legal structure is not sufficiently evolved this risk can be quite high. This is very critical when we are exporting products or services abroad.

Indian law in this aspect has established quite a strong principle on this matter. Our law makers have appreciated that if this issue is not addressed properly, some executives, with short-term view could use this plea of executive necessity to drive his personal agenda and this in long term would discourage availability of high-quality service providers from both within the country and abroad to deal with the government.

The judgment by Justice P N Bhagvati who has served as the Chief Justice of India has addressed this matter lucidly in Motilal Sugar Mills case (AIR 1979 SC 621). I have quoted some parts of his judgment for the sheer beauty, brilliance and clarity of this judgment. "The law may therefore now be taken to be settled as a result of this decision that where the Government makes a promise knowing or intending that it would be acted on by the promises and, in fact, the promisee, acting in reliance on it, alters his position the Government would be held bound by the promise and the promise would be enforceable against the Government at the instance of the promisee, notwithstanding that there is no consideration for the promise and the promise is not recorded in the form of a formal contract as required by Article 299 of the Constitution”

He has further elaborated, “Why should the government not be held to a high "standard of rectangular rectitude while dealing with its citizens"? There was a time when the doctrine of executive necessity was regarded as sufficient justification for the government to repudiate even its contractual obligations, but let it be said to the eternal glory of this court, this doctrine was emphatically negatived in the, Indo-Afghan Agencies case and the supremacy of the rule of law was established. It was laid down by this Court that the government cannot claim to be immune from the applicability of the rule of promissory estoppel and repudiate a promise made by it on the ground that such promise may fetter its future executive action."

When we try to understand the strength of the rule of law of any country, the existence and enforcement of such fair dealing by government in any contractual relationship is an excellent indicator.


Power tends to corrupt, and absolute power corrupts absolutely. Lord Acton

Take it or leave it

“How do you expect us to fly as you fly?” came another voice. “You are special and gifted and divine, above other birds.”
“Touched him with a wingtip! Brought him to life! The Son of the Great Gull!”
“No! He denies it! He’s a devil! DEVIL! Come to break the Flock!”
- Jonathan Livingston Seagull

Shashi Tharoor had right credentials for being in the external affairs ministry. Well educated, excellent experience in the field of international diplomacy, an outstanding orator, a thinker, and well connected among the senior political and administrative circles across the world. However, the self righteous middle class and the many among the self serving media together were too eager to pillory him for his ‘cattle class” remark and were happy to pull him down for his IPL imbroglio.

C. B. Bhave is the most qualified to hold the position of SEBI Chairman today and he takes his job very seriously. The enforcement record of SEBI under his leadership in the last three years has been outstanding in comparison to its past performance. The initiatives he took in with respect to the mutual fund industry and the insurance industry have been acknowledged as beneficial for the investors at large. But there are many out there who strongly believe that his ‘tough cop’ style is not what we need in a regulator.

If we look around, we can see many such examples of ‘A few Good Men’ being crucified. When a regular human being like each of us, takes pride in his public responsibility and works hard to do justice to what he is expected to do, there are hardly few who will support him. We seem to be unable to tolerate him for his sense of purpose, his sense of integrity, his initiative in doing the right thing. We are looking for one apparent mistake from his part, one controversy, or one remark, to belittle him if not condemn him.

Why are we so eager to see him flounder? Why are we too happy to see him fail? Why don’t we want him to succeed? Because if he does, then we have no excuse for our inaction; we have no excuse for our failures; we have no excuse for not even trying.

On the other hand, we are willing to tolerate unscrupulous elements in their positions of power, whether in Politics, Bureaucracy, Business or even Academics. The more unscrupulous they are, the more our tolerance. We are willing to extol that iota of good deed that he does as an excuse for our support or at least tolerance of him. We find it easy to elect Phulan Devi and Haji Mastan (I am sure we can think of better living examples around us) to power than to support and encourage honest and clean officers in their endeavours.

Why? Because he is not one of us; he is an exception, an outlier, an aberration. Our middle class morality can satisfy our self righteousness by dissecting his corruption, fraud and self serving behaviours and attribute his success to his shenanigans. We secretly hope that being on his right side would help us in our own little scams when it is convenient to us.

If we want to try to make a difference we are faced with limited options. Be ready to be called a Devil or God. Or be ready to be shot down by own kith and kin. The more pioneering our initiatives and/ or more change it brings to the existing order more vicious will be the rejection. But we have to keep trying because it is through the sacrifices of a few that social transformation is nurtured; albeit very very slowly.

“Don’t be harsh on them, Fletcher Seagull. In casting you out, the other gulls have only hurt themselves, and one day they will know this, and one day they will see what you see .Forgive them, and help them to understand.” Jonathan Livingston Seagull by Richard Bach


The post represents my personal opinion and not that of any organisations or people with whom I am associated.

“Nothing Succeeds like Success”

After we got our independence in 1947, we decided to pursue a mixed economy, established a strong planning infrastructure that encouraged public sector to lead the way in investment in key sectors. We protected our industry against competition from abroad by import restrictions and high tariffs and against competition from within by restrictive licensing policies and MRTP act.

Our country as a leader of the Non Alignment Movement (NAM) attempted to play a major role in international politics. But unfortunately this movement had as its members mostly underdeveloped and developing countries with little stature in the global political or economic landscape. Moreover, many of them for their own benefit found it difficult to be truly neutral and had mild or strong alignment with one or the other great powers. In this way the influence of NAM and India was not that significant through this avenue.

Thus for sometime post independence, we seemingly had nothing important to offer to the world at large and were therefore almost in isolation. In the mid eighties slowly and early nineties surely, our economy started to open up. Our Industries were not gobbled up by the Multi National Corporations as many feared. We demonstrated an ability to sustain an impressive growth of economy. Our markets were looking attractive; we realised that we had competitive advantage in many key fields; India became a country which could no longer be ignored.

Our President got one of the best welcomes when she visited UK last year. She was invited to stay in the palace with the queen. Four professors from Wharton visited and studied Indian Management practices and they have published a book called the “India Way”. As per Harvard Business Review “The authors explain how these innovations work within Indian companies, identifying those likely to remain indigenous and those that can be adapted to the Western context. With its in-depth analysis and research, The India Way offers valuable insights for all managers seeking to strengthen their organization's performance.”

As per another review “this book closely examines what Indian managers do differently and how their management innovations work, which of these innovations could be transferable to the Western context and ultimately how this new management model could one day modify or even supplant the old.”

Something like a management practice could not have evolved overnight. It would have been around for a long time. But, we now see a much elevated interest across the world for many things ‘Indian’. In fact, we have won more beauty contests since our economy has opened up in early nineties. Why this interest now? It is because we have become relevant.

Ours is a young and growing economy; our markets are large and more open; there are fairly strong institutions in many sectors. Today on the foundation of a stronger economy we are in a better position to get attention, to be heard and to influence; much more than any visionary or intellectual leaders could do as the head of a pauper state.

If we want to make a difference, as a country, a company or as an individual, we have to first establish our relevance in areas which are important to our target audience. The more importance or apparent importance we can project, the more influence we can exert. The relevance could be as a customer, as critical supplier, as a policy maker, as a fixer. as reference, as financier or a strong alley. But there has to be relevance.

This is not a prescription; but just an observation. This is not a value statement; but an expression of realisation. This is not peddling of a panacea; but sharing a reality of life. This may be the “Mathew Effect” that sociologist Robert K Merton propounded and made popular by Malcolm Gladwell in his book “Outliers”. It is left to us to interpret and act on this in a way that makes sense to each of us.

For to all those who have, more will be given, and they will have an abundance; but from those who have nothing, even what they have will be taken away. — Matthew 25:29

“Lead us not to temptation”

“Marshmallow Experiment” is an amazing study conducted by Walter Mischel, a professor of psychology at Stanford University in the late sixties. This study attempted to evaluate the ability of four year old children to delay their gratification. The children were called to a room and were offered a piece of marshmallow. They were told that they could eat it immediately or if they were willing to wait till the researcher came back in a few minutes, they could have two pieces.

Some kids ate the marshmallows immediately, some waited for few seconds and few of them could wait more than 15 minutes for the researcher to return so that they could claim their prize for delaying their gratification. Walter was trying to study the mental process of this delayed gratification. After a few years, he attempted to track the performance of these children to see if there was any correlation between ability to delay gratification and their subsequent performance. The results were exceedingly surprising. He observed a very high degree of correlation between self control and performance parameters, including SAT scores. This and the related studies have shown that performance was more dependent on self control than IQ.

It does not mean that self control is an inborn trait and cannot be learned and improved upon. There were children in the original sample, who had shown poor self control as children but grew up to have high degree of self control. (Look up this excellent article which discusses this issue in detail)

Let us take this learning to an adult, rather corporate context. Most of our jobs places two kinds of demands on us. These can be described as maintenance roles and developmental roles. Maintenance roles are usually clearly defined, they need immediate attention, the results are immediately visible and no doubt they are urgent. Developmental roles less defined, results are uncertain, results take long time to materialize and often not urgent.

Some of us let ourselves to be caught up with these urgent matters day in and day out. We practically have no time even to breathe. We have hundreds of reasons why we cannot take up any developmental activities now; whether it is reading up on related subjects, taking up a process re-engineering exercise, experimenting with a new technology tool or even finding some time to build relationships.

On the other hand, some of us will find, rather cheat, some time from our busy schedule to take up some assignments or experiments which may not be in the radar of priorities. An idea has caught our attention and we are willing to chug away at it; finding few free moments from our busy schedules. We are not sure what will come out of it. But we know we are searching for a possible tool, working on an idea that in the long run could make a difference.

If we look around we will see that most of the time people who have build something substantial, made a difference and provided visionary leadership are those who had the determination to see beyond what is urgent and willing to search for and toil for ways to make a difference. This also is nothing but a matter of self control. That may be why “Lead us not to temptation” is a key element in the Lord’s Prayer.

“There is an eagle in me that wants to soar, and there is a hippopotamus in me that wants to wallow in the mud” -- Carl Sandburg, American Writer, Editor, and Poet

“Monkey and Me”

I was surprised when I read in National Geographic.Com that “A comparison of Clint's genetic blueprints with that of the human genome shows that our closest living relatives share 96 percent of our DNA. The number of genetic differences between humans and chimps is ten times smaller than that between mice and rats.”

With such few percentage point differences, see what we have managed to achieve in comparison with our simian cousins! We have built cities, cars and aeroplanes and have walked on moon while our cousins are still hanging from trees. Truly remarkable.

Then recently I came across a book written by Mr.Richard Conniff titled “The ape in the corner office”. This book provides a nice exposition on the similarity between the behaviour of apes and human beings. The focus of this book is more on the human behaviour in corporate setting.

The strategies we use to establish our ‘alpha’ status, grovelling and flattery we employ to get our way, the fights we have and how we makeup, how we use language to groom our colleagues and our bosses; all appear to be the same what our ancestors have been employing for millions of years. Just that the scientific progress helped us to have better and diverse tools for innovative implementation of these strategies!!.

Look at the way the Chimpanzees establish their pecking order and the alpha status. It is not just based on brute force. It is derived from a combination of the leadership skill, courage to take decision, strength of the network and also cunning and political manoeuvring; just like human organisations. The relative proportion of each element may vary. When the proportion skews more towards cunning there is a higher chance for group disintegration.

Many scientists have pointed in spite of all the scientific progress, the source of our base emotions and insecurities have not changed for millions of years. Now it has dawned on me that it is not just with respect to genes that we are 96% apes, many of us in our behaviour and inner desires resemble our ancestors more than we think we do!

Therefore, when we learn to look deep and understand the base emotions and inner drives that provoke us to act in certain fashion we may be able to have a better control on ourselves. This understanding could also help us in our relationships as it might give us a perspective on how the other person could react or why the other person reacted in certain manner.

“We are just an advanced breed of monkeys on a minor planet of a very average star. But we can understand the Universe. That makes us something very special.” Stephen Hawking

Of being “True and Fair”

When an audit firm undertakes audit of financial performance of a company, the seasoned partner attempts to make a judgement on how well the financial statement represents the financial health of the company and the financial integrity of the management. Some years ago he made this judgement not based on compliance to a set of rules and standards but also on a variety of factors which, based on his experience, helped him to make a true and fair judgement.

There have been many instances of compromises to the spirit of the audit and many unscrupulous managers and auditors connived to hide information and to defraud the shareholders and or the government. This kind of degeneration forced the profession to come up with more and more standards and rules. The pendulum swung the other way with auditors focussing primarily on compliance to rules. The management learned the trick of demonstrating technical compliance and auditors were happy to play along.

The perils attached to this are now getting evident and there is a serious discussion among the accounting professionals that there is a need to find a balance. A sensible balance of using both rules and principles to judge whether the statements are indeed ‘true and fair’ with focus shifting more to principles.

Similar swings have also been witnessed in a variety of areas which require checks and balances. We moved to rule based regulation and we are now swinging back to principle based regulation. As the UK Financial Services Authority has portrayed “Principle based regulation – focussing on the outcomes that matters”.

Even the perception regarding the role of company board is undergoing a change. Its primary role is not only to protect the interests of the absent shareholders, but also to act as a guide and a sounding board for setting the strategic direction of the company.

Such shifts in disciplining methods are not just in the governance models of corporate and regulators. We see it in educational institutions and even family lives. In earlier era the parenting role included strict discipline of rules, timetables and targets; there was friendship and authority. The schools also followed almost regimental structures. Then there has been shift where the role of the teacher and even that of the parents have become primarily advisory in nature. This shift is quite predominant in western cultures. The safeguards that were built to restrict parental abuse and cruel treatment by teachers are now being misused. We see similar ideas being propounded in India too.

The society in now paying the price and there is a great deal of concern on the falling standards of education and falling standards of discipline and value system. I found the thought expressed by Michael R LeGualt in his book ‘Think” relevant in this context. “It seems clear that in setting out to be mainly the child’s friend or self esteem coach a parent is surrendering his or her most important role in shaping child’s values and character-that of mentor, guide and authority”

Such pendulum swings remind us of the need for strengthening the values right from the childhood and the need for a balanced approach instead of carrying any solution or idea to its ridiculous extent. This will be possible only if we have regulators and legislatures who have the vision to build clean institutions and the courage to stand up for what they believe is right. This is often available only in ‘limited edition’. When we see such leadership, it is our role to support them.

“Character is doing the right thing when nobody's looking. There are too many people who think that the only thing that's right is to get by, and the only thing that's wrong is to get caught.” ~J.C. Watts

Octopus Paul and his run of luck

Octopus Paul has added an additional element of excitement to the football mania that the world cup has unleashed. Even though I am not such an enthusiast of football, I still ask how Paul’s prediction has fared. It has added another topic of conversation, another exciting piece of trivia.

Do I believe that there is something divine or mystical about Paul? No, I don’t. Is there anything special about Paul? Yes he is one lucky fellow who has managed to get four out of six predictions in the Euro cup 2008. In this world cup the eight out of eight correct he has managed had a probability of success of 1/ 256. Now we have parrot Mani and the Indian Louse and many more in this game.

Not as lucky as the guy who gets a first price in lottery with few million contestants or even the boy who tops in IIT entrance exams with a million aspirants.

If he was a human being, there would have been books written by him and or on him about his theories on how to predict successful football teams.

He would be a bigger hit if he could repeat his luck in capital market. In fact we often see some lucky players who have run up such lucky streaks for some time and many of them have surely written their books.

This is true of most of what happens in our life. The number of variables that affect most of the outcomes, (whether it is in picking a stock, or in diagnosing an ailment or in choosing a job option) in long term or short term is way too large and complex for anyone to master.

What we can do when we specialise in a field, or work on a project is to get a better idea of the factors that may have a very high probability and or high impact on the outcome and then proceed.

Ceteris Paribas (everything else being equal), the success of one person from a pool of equally capable individual, is just plain luck. So when we improve our skill and knowledge, we improve the probability for a favourable outcome; almost like loading a dice.

On the reverse, when we lose in spite of the excellent preparation we have made or the skills we posses, it could be just being plain unlucky.

The religious minded will ascribe this as the wish of god or fate.

I am not questioning the existence of god, but reminding that even god would want us to be prepared and to exercise our choice (“It is for me to choose”) and not put the blame on him!

We can’t do anything about the genes we are born with or the environment we are born into. But, we can try to improve the probability of successful outcomes by enhancing our expertise, network and resources.

“Luck Favours the Prepared” Louis Pasteur

Sleeping with the enemy

Human beings are social animals. We have friends and we have enemies. They are nothing but two sides of the same coin; often changing from one form to another based on context or on situation.

What drives our enmity to somebody? The two key factors that influence this are Desire and Pride. Desire on one extreme could be the greed for more and more and on the other extreme it could be the need for self preservation, protection of what we hold precious or demanding what is due. Similarly, pride on one extreme could be the bloated ego or on the other extreme could be defending our dignity.

When we have a conflict with another person about something we desire, or when he hurts our pride in some fashion he becomes our enemy.

The degree of conflict or the stakes associated in this conflict will also determine the intensity of our hostility. If we are fighting for a large material benefit or preservation of our dignity and honour we may even fight harder.

Enmity is also contextual and situational. When Sachin and Jayasurya are playing for India and Sri Lanka they are competing and they are enemies during the game. But when they are playing for Mumbai Indians they are friends. May be in private life they would be friends. Similarly, if I am working with one Mutual Fund, I will be fighting and in competition with other Mutual Funds; maybe I will even try a few tricks to make my competition look not good enough. But when all the mutual funds are fighting with the insurance industry or we are lobbying with the regulator, we are all friends. Mukesh and Anil Ambani may have been fighting with each other to further the interest of their companies and also their personal pride.

That is why sometime the enemy of our enemy becomes our friend. Remember the famous quote from Mr Bush, the past president of America. “You are either my friend or my enemy”.

It is also person dependent. Some people are more tolerant about desire and conflicts associated with it; some people are more accommodating about hurt to their ego so long as there is a material benefit.

When we deal with people, whether in business or in friendship, we need to develop a skill to assess how they would react if and when there is a conflict with respect to either their desire or their pride. We need to also be sensitive to how the reaction would differ as per the situation, the people present or the stakes involved.

If the other person is very greedy, he may use any means to get what he wants or on the other hand we may be able to buy him at a price. If the other person is very proud and hot-headed, it may not be a good idea to needle his pride.

We have to also factor in how powerful, the person with whom we have a conflict is. The more powerful we are, in relation with the other person, we have a better handle. But we need to keep in mind, that the power is determined by not just what he possess or what his position is; but, also by what he perceives that he has to lose. That is why one suicide bomber, can inflict more damage than a battalion of regular soldiers.

“In a war, just or unjust, in the end nobody wins”

“Vanity my favourite sin”

Nuremberg trials are a series of military tribunals held by the allied forces who won the Second World War. These trials were held to prosecute members of political and military leadership of the Nazi Germany for their crime against humanity. In most of these cases, they were being prosecuted for what they did, for their obedience to their superior’s commands as expected from a disciplined officer of any organisation, more so of the armed forces. Therefore, a certain set of principals had been evolved to determine what constitutes war crime. These principals called the ‘Nuremberg Principles’ had been created by the International Law Commission of the United Nations.

It is now accepted at a philosophical level, that when we act as per the directions of the superiors, we also have the moral responsibility to assess the fairness of the actions and express our dissent when those actions are against the larger interest of the society.

The issues associated with ‘blind following of the order from the superior officer’ are not just a concern in military actions. We face it in our day-to-day life as an officer of the government or even of commercial entities. It is practically difficult for many of us to act on a moral choice to “blow the whistle” as the potential retribution of such action could have an adverse impact in our personal life.

In many cases, the individuals who have questioned the actions of their superiors have been harassed and had to suffer significant damage to their life and career. This include dismissal from job, coming in the way of he getting alternate employment, tarnishing his image so on and so forth.

Society has been trying to evolve legal structures to protect and encourage citizens to ‘blow the whistle’ when they come across un-ethical or fraudulent actions and to give them the right to demand information that could elicit truth.

The listing agreement between the stock exchanges and the companies has a provision (though still non -mandatory) that all listed companies should have a published ‘whistle blower policy’ for employees to report instances of unethical behaviour, actual or suspected fraud or violation of the Company’s code of conduct or ethics policy.

The “Right to Information Act” tries to provide a strong tool in the hands of the citizen to demand access to information regarding the actions of the government.

This legal enablement has helped to bring about more transparency in administration and corporate governance. One of the main criticisms against these provisions is that many a time these are misused to further private agenda, inter-personal conflicts or even to clog the pipes of the administrative machinery.

In spite of all these, India is still rated high on corruption both in private and government sector. The tag line of an article written by Mohan Murti (former Europe Director, CII, and lives in Cologne, Germany) in Business Line titled “Is the nation in a coma?” reads “Europeans believe that Indian leaders are too blinded by new wealth and deceit to comprehend that the day will come when the have-nots will hit the streets”

Corruption is not just with respect to monetary returns for favours dispensed or deviation from law; it is also applicable to the actions of commission and omission by the so called clean and honest people, that pander to their needs of ego satisfaction, self glorification and just plain megalomania. As John Milton played by Al Pacino in the award winning movie quips “Vanity definitely my favourite Sin”. And un-ethical actions that satisfy this vanity is equally despicable as the actions that layers the pocket.

While continuous evolvement of the legal framework can help the cleansing process, each us has a responsibility; the responsibility to act ethically and to question ethical violations (especially the ones which are technically and may be even legally correct) that hinders the path to building a cleaner society that respects decency and fair play more than the smell of greenbacks and self edification.

“Nearly all men can stand adversity, but if you want to test a man's character, give him power”. Abraham Lincoln

Question of Existence

We humans are part of a giant living system. We are unique, independent, and self contained; but we are also part of the whole and have no existence in isolation. Take a handful of mud from the top soil of a river bank. Is it live? Ask a farmer. He will tell you that it is bustling with life. From micro-organism that we can’t see to insects, to worms! Does it have a collective property? Yes it has. It is fertile. As a combination of those millions of creatures that goes about its routine it becomes a fertile block. Devoid of these teeming life forms, this same mud would be dead.

Look at our human body. Ask a doctor! He will tell you that our various body parts are swamped with multitude of micro-organisms and without them there, we would not survive. If by some magic we manage to get rid of them, we can no longer sustain.

Sometimes some of the organisms mutate and grow too fast or virulent that it destroys the balance. Then the nature has its own way to contain and curtail and bring the balance back.

Our mother earth too, with multitudes of creatures, collectively makes a living system. Though often we see ourselves, fallaciously, as masters of this planet, we are nothing but one of the component that sustains her (or that is sustained by her). In the recent past, we humans have been multiplying too fast and turning virulent to the detriment of our environment, threatening its balance and our own survival.

We humans are endowed with intelligence to understand and we are also way up the chain of enlightenment that we can observe and realise the consequences of our actions.

We have two choices. Learn to discipline this run away plundering or let nature come at us with a heavy hand.

Let us look at our life from a different perspective. All through the past few thousand centuries some men, to some extent attempted and managed to be in synch with the nature and understand, appreciate and connect with the big picture of cosmos. From this connection they shared their insights as Bible, Vedas, Upanishads, Khuran, etc; the windows to this cosmic force and a tool for our spiritual linkage. We have seen, that in spite of rational thinking and scientific progress these truths still remain and sustain, though the rationalist may point out the conflicts and disconnects.

With a large majority of human beings being restricted by this rationalist way of thinking, the link that human beings have with the ‘cosmic truth’ appears to be getting weaker and weaker and the progress in our spiritual maturing appears to have been arrested.

From both perspectives, it appears that unless we realise our irresponsible exploitation of our ‘mother ship’ earth and unless we try to re-synch with the cosmic forces, the nature will soon hit “ctl, alt, del”.

“It is not that science and religion are in conflict; it is just that science is too young to understand” Unknown