2008 Oct 03 - Friday Update
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2nd October came and went. It was Mahatma Gandhi’s Birth Anniversary. I have read a lot about Mahatma Gandhi and with my limited comprehension, I can say that Gandhi is one of those few people who had real powers. Powers to communicate, connect with the masses, use un-conventional thinking to get more ideas, lead by example, so on and so forth. If I can develop about one-tenth of his people skills, I can bring about a larger revolution that he got. Anyways, getting back to interesting developments over the past week,
Business
- Jagdish Khattar (the man who ran Maruti for about 15 years and recently retired as Managing Director) is back and has launched his new venture. Carnation Auto India will be a chain of multi-brand automobile sales and service outlets. (link to news release). Awesome idea. This is a one of those industries where the unorganized sector rules the roost and as we have seen in the past, anyone who can “organize” or “brandize” even a small share of market, stands to gain a lot (Organized Retail, Jumbo King Vada Pavs etc.). In terms of competition, the ones I can think of off the hand are Mahindra’s First Choice and another one by Shah and Sanghi Motors. Need to read more about this. And probably write more on this brandizing unorganized sectors. Truly a new new thing that I will look forward to.
- Warren Buffet invests $3bn in GE. This is second investment in a week. Last week he put money behind Morgan Stanley Goldman Sachs (EDIT: I have no clue how I could have got this wrong. Thanks Shefaly.) However this time I disagree with him. I have worked with GE and my limited experience, I can say for sure that the management is over-hyped and is not up to the mark. They simply dont know how to allow employees to take risks. And the mangers have no clue how to run the show.
Interesting Tidbits
- On their 10th anniversary, Google created this page where you can search the index of Google as it was in 2001. Google Search in 2001. The world has changed like anything in last 7 years. Google for things as simple as India to as complex queries as “prime minister of India” and you will be surprised.
- Discovered Jose Gonzalez. His Heartbeat was used by Sony for their Bravia (Balls) commercial. Love the way he strums his guitar. He makes me want to learn playing guitar all over again. May be I will pick it up soon.
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- Finally wrote the Credits page for this blog. It was long overdue. Please check it out.
- Have started using visual thinking and visualizations in my blog post. Although it is more time consuming for me to actually create these visualizations (given my limited skills on an image editor) but I think the image gets the message across faster and better. Thanks to David Armano for inspiration.
- The govt. of India has finally banned public smoking. This I think is a welcome move. I dont know if smoking is any good/bad, it certainly irritates me and I would rather live in a smoke-free India. ITC can crib as much as it can but the move definitely is a positive one.
Even though this has been a short week but so many interesting things have happened. The world moves ahead. One baby step at a time. P.S.: This post is being published on Saturday. I was traveling on Friday.
Shefaly:
You will find Buffett invested in Goldman Sachs, not Morgan Stanley.
A company like GE does not become the behemoth by having management that is not ‘up to the mark’. Innovativeness of the kind GE has is not about risk-taking but about sensible risk-taking. Two of my friends joined GE in their leadership programme and their experiences were very different. It may be fair to say that unless early years in a company have exposed someone to the firm’s greater strategic challenges, the view at the frontline may not be totally accurate.
October 4, 2008, 1:28 pms4ur4bh:
@Shefaly. I guess I have some explaining to do before I make that kind of a remark … ;P
When I say its not upto the mark, I am talking about the leadership at GE Money India. Probably its unfair on my part to comment on the entire company because my interactions with a smaller part of the company were sore. I think I will edit the post.
I too joined the leadership programme and we were TOLD (not advised) things that are really dumb both professionally and conventionally. I cant comment from the ’strategic challenges’ that a firm faces but I can comment on the day to day running on the company (where I was part), the ethos, the culture, the policies, the ‘exceptions to policies’, so on and so forth. On paper we were an exceptional company but in practise we were not. There were more exceptions that policies. I can go on forever but no point. Probably when you are in Mumbai, will give you more ‘insights’ :D
And thanks for reminding that its Goldman that Mr. Buffet invested in. Have corrected it.
Thanks,
October 5, 2008, 7:19 amSG
Shefaly:
@ Saurabh:
GE Money is a very specific case and I daresay your experience would not have been very different if you worked in any other commercial banking establishment. The commercial banking sector is very closely and tightly regulated; violations, and errors of omission and commission all cost dear. One is not meant to use ‘common sense’ because it can give people misguided confidence and create more headaches for management. Hence more ‘exceptions’ than ‘policies’. As it happens, my ‘insight’ into this world comes from working with investors and from knowing a few people here who run the world’s largest bank card transactions business.
October 5, 2008, 7:53 ams4ur4bh:
@Shefaly,
Trust me, even with a commercial banking company like GE, there are so many things that you could have changed.
And I completely agree that sector is regulated and we need to keep a close watch and control on how people work. They do is really really well. And in the process they hinder effective working of employees.
Talking about other companies, GE Money is the only company in India that is struggling with their loans business and cards business is hit by high delinquency rates (Other companies are struggling too but none as bad as GE. Citi was in trouble but they seemed to be going slow on things, Barclays tried and has not even made any dent in the market, other established players are doing fine).
I again dont want to get into specifics, since this is a public forum. Would love to rack my brains with you on this since you have a conflicting opinion. Your Mumbai visit, I shall make sure you are told the “real” way companies function :D
Finally views from the corner offices on the top floor (and the people who “run” things rather than “implement” things) and investors IMHO are often shielded by thick curtains of bureaucracy, red tapes and boardroom meetings. Next time you want real insights, please speak to someone who actually speaks to the customer and tries selling things. I got a rude shock when I accompanied my sales agents. It was an eye opener and since that day I speak to field agents in any business if I need insights or information.
Regards,
October 5, 2008, 8:18 amSG
Shefaly:
Saurabh
“Next time you want real insights, please speak to someone who actually speaks to the customer and tries selling things.”
All I can say is that you presume rather a lot about me :-) And about those who ‘run’ things. Competent people usually do not get parachuted into jobs but earn their stripes and know the ropes of the business. The best people at the top have broad and deep views and they are not shielded bty anything.
I would suggest you seek conversations with some more inspiring ‘corner office’ or ‘top floor’ people, who have seen the various cycles of business - not just the ‘up’ phase - and who can talk in broader terms as well as specifics.
Best wishes.
October 5, 2008, 10:28 ams4ur4bh:
Shefaly, whatever you have said is very very correct. But again its really far from reality. Not at least in India.
And would love to meet more such people. Help me with contacts and references :)
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October 5, 2008, 10:38 amSG