Vol . xxxxi No.2 fountainhead of excellence MAY-JUN 2015 Contents New Insurance Bill 2015 In Conversation with the Mystic 5 D D Singh 10 Sadhguru Jaggi Vasudev Voices & Choices New Insurance Bill Vision and Paradigm Shift... 13 Voices of Triumph 16 D K Mehrotra From an Unknown Blogger to a Best Selling Author Preeti Shenoy 20 Building High Performance Teams Using ‘S.C.O.R.E’... 22 Prof Sattar Bawany How to benefit from the Indian stock market? N Kannan 25 EDITOR Gp Capt R Vijayakumar, VSM (Retd) Designed and Published by LAYOUT EXECUTIVE D Rajaram No.21/11, 3rd Cross Street, Seethammal Extn. (Opp. SIET College), Teynampet, Chennai 600 018 Phone: 2433 3757 / 2431 3757 / 4207 4220 e-mail: [email protected], [email protected] www.mmachennai.org, www.facebook.com/mmachennai Printed at Shree Balaji Printers Pvt Ltd SECRETARIAL ASSISTANCE K Pandiarajan MADRAS MANAGEMENT ASSOCIATION From the editor Dear Members, The month of March dawn with enjoyable weather and was eventful with a flurry of activities. We are just on the brink of summer and the heat is already on and driving people to head for cooler locations. But at MMA, the heat is on to extend high quality management event including MMA Awards, Election to MMA Managing Committee, AGM and many more. I am also happy to inform you that our endeavour and hard work for the last four years with the support of Senior Advocate, Ms Pushya Sitaraman resulted in an Income Tax Order in favour of MMA. This is an important judgement by the Income Tax Tribunal that would enable MMA to enjoy the benefit of exempt from income tax and continue to offer high quality educational events to propagate management movement in this part of the country. But the saga continues...... We win one to fight another... Story of all Indian businesses. The recently concluded MMA Women Managers Convention on the theme “Voices” was a grand success attended by more than 700 women delegates. The Convention was addressed by a galaxy of speakers from all over India and we are delighted to present to you in this edition, the transcript of interesting sessions on “Voices & Choices” and “Voice of Triumph” for your reading pleasure. MMA organised a Conclave on the theme “New Insurance Bill 2015: Vision and Paradigm Shift Facilitating Opportunity” in association with CAMS Repository Services in April 2015. The country has a long history of the thought and practice of insurance. The Insurance Laws (Amendment) Bill, 2015 becomes important against the backdrop of this historic, present and an evolving insurance industry landscape. The bill has several provisions that can enable Indian consumers, as well as domestic and foreign companies, to benefit from India’s vast and at present an almost unpenetrated market. The experts from the regulators shared their insights on the New Insurance Bill 2015 and I am happy to present to you the transcript of the Keynote Address by Mr D D Singh and Mr D K Mehrotra for your understanding of the farsighted Insurance Bill. Should the internet be touched? Net neutrality is the basic right of every individual as it gives them choice to access. In one way, it represents freedom of expression which is the hall mark of our democracy. In the present times, it can be very well said that the “Internet is freedom” as it has the power to make a person believe that nothing in this world is beyond his/her scope of achieving it. On one hand we have a visionary government focussing on a “Make in India” and on the other we gave telecom and eCommerce giants who envision a competitive – free market by scraping Net Neutrality. We need to express our views and save the internet. India offers highly attractive investment opportunities for domestic and international investors. Such investments are critical for fostering entrepreneurship and innovation. India already enjoys a strong reputation. It is a global leader in delivering quality services at low cost – demonstrated by the extraordinary uptake of mobility phones and banking services by rural Indians. Innovation is the key driver of growth in any economy. Innovation is a reality of today’s integrated economies. What industrial revolution was to the 18th and 19th century, mass production was to the 20th century, innovation is to the 21st century, the pivot of effectiveness and of obtaining an edge. In the Indian context the focus on innovation must follow a special path of inclusiveness – involving everyone in the country not just those who produce and consume at the high end. In this direction, MMA joined CavinKare to celebrate the spirit of entrepreneurship & innovation to recognize young businessmen/women running small and tiny scale industries by instituting the Award - Chinnikirishnan Innovation Award - the man who pioneered the sachet revolution. This Award will be an annual event focus on the overall value of the innovation in terms of its uniqueness, its benefit to the people and its ability to be scalable. The proud winners will also have access to marketing advisory services facilitated by MMA & CavinKare. PepsiCo CEO Indra Nooyi’s Convocation Address to the class of 2015 at IIM Calcutta was thought provoking. Ms Nooyi’s exhortation to the management students to learn, earn, and return and to always stay humble is timely advice especially when families are increasingly becoming nucleus and the concept of old age homes is catching on. Ms Nooyi’s move to ask the students to give their parents a round of applause was indeed thoughtful. I do hope our young managers and students emulate the advise of Ms Nooyi and lead a happy life! Gp Capt R Vijayakumar, VSM (Retd) Fountainhead 0f Excellence In Conversation with the Mystic Sadhguru Jaggi Vasudev Founder, Isha Foundation This article is a summary of conversation with the Mystic Sadhguru Jaggi Vasudev by Mr Venky Rajgopal, Managing Director, Indian Terrain Fashions Ltd and Past President, MMA at MMA Annual Convention held on 20th February 2015. Venky Rajgopal: Sadhguru, at the outset, let me express the immense gratitude of the Madras Management Association. You have fulfilled a number one on the wish list of the MMA, which has endured for many years. I was President a few years ago and you were always the first target. So, very grateful, Sadhguru, and personally it is a great privilege to be sitting with you and having this conversation. You are cool on the outside and hot on the inside, Sadhguru, that is what I can see. Can you tell us what is it that emanates this cool persona? Sadhguru: Anyway, the language has gone through a certain amount of transformation. In the sixties and seventies, to describe the same quality, we used to say, “Oh, he’s hot.” Now they say, “He’s cool.” Probably the impact of global warming, changing our language. So what is it? Let’s come down to something very mechanical. If any machine has to work with a certain level of efficiency, for example, a simple air conditioner, look at the amount of noise it is making. So improving technology means one day, there will be an air conditioner that you will not notice, but it will just do what it has to do. It is supposed to just cool the hall, but it is making bad music. So, this is happening with human beings. They are supposed to do one thing, but so many other things are happening with them. They want to handle one issue on the outside, but they themselves are one big issue. One thing I did with myself was make sure that I am never an issue. Because I am not an issue, we handle the outside issues, to the best of our ability and in the time that it allows. Why I was talking about machines and being efficient within is because whatever aspirations you have, business or otherwise, essentially it is about functioning at a higher level than you are functioning right now. Every tool that we create, every machine that we build is only about enhancing our existing capabilities. Because we can speak, we made up a microphone so that we can speak clearly and loudly. Then we made up a telephone because we can see all kinds of scope for this. Essentially, every tool, every machine, whatever we create is only to enhance our already existing faculties to different dimensions. By turning inward we could enhance 5 BUSINESS MANDATE | MAY-JUN 2015 ourselves immensely, but that would need some work. Technology means someone else will do it for you. You do not know how your cell phone really works, you just have to learn to use it. With the inner dimension, you have to do it – no one else will do it for you. Today modern science is beginning to talk about this, but the yogic science has been talking about it forever: whether it is an atom or the whole cosmos, the fundamental design is the same. It is only the complexity and sophistication which is improving. Whatever the technology, the fundamental science has not changed, only the complexity and sophistication of arrangement is changing. You can rearrange the complexity and sophistication of your own existence in so many ways. One person is more sophisticated than the other simply because he has arranged a few things little better. How smoothly something functions on the physical level is a question of geometric perfection. The whole physical existence is a certain type of geometry. Whatever is not geometrically correct will collapse into itself. Only what is geometrically correct will exist and continue in the universe. Right now for example, if you take the solar system, all these planets are keeping their beat of going around the sun because they are in a geometrically correct pattern. If you disturb them a bit, it is finished, the whole thing will collapse. The same is true with you. If this system is geometrically in a correct state, its existence will be smooth; its existence will not be a struggle of any kind. To sit here, it is perfectly easy. Because I am at ease, you say I am cool. That is your word for me being at ease. It is just that, if you bring something to a certain state of geometrical perfection, everything is at ease. If you check my pulse rate right now, I have just had breakfast and come, it is somewhere around fifty-five probably. If I was hungry and I just sit quietly, it will settle down below forty, because the geometry is correct. Because of that, whatever else you do happens with the least amount of friction – with the least amount of effort. What is the big difference between an Ambassador car and a BMW that you drive today? Just geometric perfection. When I was riding motorcycles, we used to do our own engines. We would buy a brand new Yezdi motorcycle and Fountainhead 0f Excellence dismantle the whole engine – we called it “blueprinting.” We had to re-align the whole engine before we rode because we want to ride in a certain way. The stock engines would never ride like that. But today, you buy it off the showroom and just go away. It is simply geometric perfection which has made the difference. The same thing goes with you. The whole system of yoga is to rearrange your system. Your genetics and so many other things might have given you various levels of distortions. If you do a little bit of work with yourself, you arrive at a certain level of geometric perfection physiologically, psychologically and energy-wise, where your system functions with ease. That means you are never an issue. There are issues in the world, but depending upon our interest and time, we will do whatever we can. Venky Rajgopal: Sadhguru, I have been in the business of building an apparel brand for many years and I have yet to get it right. Which brings me to the question Sadhguru, I see you perfectly attired and you carry it off with so much elan. There is a brand of the Foundation and there is a brand which is Sadhguru. I would like to know is it a happy coincidence or by deliberate design that you know who you have to attract, and you know who you have to embrace, if this country has to change? And this persona is important to make them part of your vision. Please help us understand, how do we arrive at this? Sadhguru: I am not targeting any particular group of people. We are doing programs and events for the highest level of corporate, academic and scientific communities. But almost seventy percent of our work is in rural India. And we spend almost ten to fifteen percent of our time, resource and energy in the prisons of the world. So what is the relationship between you and the man who is a convict in the prison? It is just that both of you happen to be human. Whether someone is a criminal, policeman, politician, corporate or tribal person, essentially they are human. My interest is human beings. When you come as a human being, you have come with a possibility that other creatures on this planet do not carry. For every other creature on this planet, nature has drawn two lines. Within those two lines, they must live and go. Once you have come as a human being, there is only a bottom line – the top line is gone. So the struggle of the human being is, he is not able to grapple with the freedom that nature has given him. People are not struggling with their bondages. They are struggling with their freedom. They are trying to create a comfortable bondage within which they can live. At every point in their life, they create a bondage and within some time they realize it is a different kind of torture and from one torture to another torture, they keep moving. But what they are struggling with essentially is their freedom; they do not know how to deal with it. If a tiger is born, a tiger is not sitting and wondering how to become a good tiger. There is no such thing. If he eats well, he becomes a good tiger. All he has to do is find enough food and eat well. But once you come as a human being, see how many 6 BUSINESS MANDATE | MAY-JUN 2015 things you have to do to become what you consider as a good human being, forget about others. And however much you do, still you do not know where you stand by yourself. In comparison to another person, you can say, “Oh, I am better than this person.” By yourself, you do not know where you stand. When you think you are doing well, someone will come by and say you are no good. Because we know what is a perfect earthworm. We know what is a perfect tiger. We know what is a perfect mango tree. We know what is a perfect elephant. What is a perfect human being, you do not know because there is no top line. It is a limitless possibility. Because it is a limitless possibility, people are trying to create a comfort zone of limitation, but no human being is ever comfortable with his limitations. He always wants to be something more than who he is. If that happens, he wants to be something more and something more. Human struggle is with their freedom, not with their bondage, and that is a tragedy. If you are struggling with your bondage, there is a solution – liberation. But if you are struggling with your freedom, what is the solution? Bondage is a solution? People are trying to find bondage as a solution and it has not worked. You see, as people become more and more successful, generally they are becoming more and more joyless. So you are sending out a message to the world, “Success is suffering” – which is a very bad message. If you keep doing it, the next generation will not seek success. Any society which does not seek success is a wash away generation; it is down the drain because success is the sweetest thing in human life. Whether it is a small thing or a big thing, you want it to be successful. That is how important success is. But successful people in the world are sending out a message that success is suffering. This happened in the ‘60s in United States. The successful people were so straitjacketed and you could barely ever see a smile on their face. The youth said, “What is the point living like this?” So they thought smoking pot on the street side is a better thing than working for your success, because at least they are happy. That is the argument, and you cannot beat that argument because what is really the point, anyway? All this is in pursuit of human wellbeing and that is one thing that has been forgotten. The first time I was in the Economic Forum, a few people saw me and they were Fountainhead 0f Excellence almost resentful. Two of them came up to me and they said, “What is a mystic doing in an economic summit? What are you doing here?” I looked at them and asked, “What do you do?” He said, “I am the CEO of a computer hardware company. We are the second-largest manufacturers of computers on the planet.” I said, “See, whether you are manufacturing a computer, a safety pin or a spacecraft, it does not matter, the essential purpose of all this activity is human wellbeing. The fundamental business is human wellbeing, and that is my business too. That is why I am here.” You might have forgotten in the process of doing it, but essentially every activity is about human wellbeing. Wellbeing will not happen to you because of what you wear, what kind of car you drive or what kind of home you live in. You are well only when you are truly joyful within you. When your insides are really pleasant, that is when you feel well. If your body becomes pleasant, we call this health. If it becomes very pleasant, we call it pleasure. If your mind becomes pleasant, we call this peace. If it becomes very pleasant, we call it joy. If your emotion becomes pleasant, we call this love. If it becomes very pleasant, we call it compassion. If your very life energies become pleasant, we call this blissfulness. If it becomes very pleasant, we call it ecstasy. If your surroundings become pleasant, we call it success. To make the surroundings pleasant, you need the cooperation of many people and forces involved or you need a certain skill to organize those things. But all the other aspects of pleasantness are entirely you and you alone. At least that much everyone should do if they want to be successful. At least you must be pleasant. The rest we do according to our capabilities. Each human being is capable in a different way. How much pleasantness you can create outside is subject to capability, time and inclination. But this much is clear – for you to be a pleasant and wonderful human being, it does not take any time. It does not matter if you were born a thousand years ago, today or a thousand years later, you can be pleasant within yourself. External pleasantness is subject to various realities. We may manage it in a large way or in a small way, but if you and me are pleasant within ourselves, what is the problem with the external situation? It is very simple to manage. So that is all the business is. Don’t make too much out of it. Venky Rajgopal: Sadhguru, you have built a fantastic organization called Isha, you have hundreds of thousands of people who follow what you say and revere you for your teachings. And your lifestyle is so accomplished, and is what every entrepreneur would want to be – driving fast cars, piloting helicopters, playing golf. These are the trappings of a successful business person. Yet, you do not seem to be in it. These are things you do and these are things which we all pursue, but there is a tremendous difference in the way you have embraced it. Whereas we make it the end all of what we strive for, what part of your life is it? Can you help us understand what is economic pursuit? 7 BUSINESS MANDATE | MAY-JUN 2015 Sadhguru: I am not driving fast cars or flying helicopters all the time. Somewhere once a year, when I drove something or rode a motorcycle here and there, someone records it and plays it every day because that is what excites them. So it looks like I am doing this on a daily basis. Now the thing is just this. What we do in the world should not be about us, because what we do should be relevant to the situations in which we exist. Whatever I do in the world is never about me because I do not have to do anything. If I close my eyes and sit, I am done. I can sit here till I fall dead. There is really no need to do anything. If I close my eyes, the world is gone for me. This is very simple. Some fundamental things have not happened to people and they made it very big. For example, a camera. If you put a lens cap on it, it cannot see anymore. It does not see any light or any image. So, what you call as your eyelids are like lens caps. Once you put them on, you should not see anything. But most human beings on the planet, if they close their eyes – not just one world, twenty-five worlds will happen at the same time. Madness will go on because things have not been taken charge of. In the sense, see you are sitting with the iPad and missing the “I.” You are really padded up for life. Padding up for life means you do not want life to hit you. What I am asking you is, have you come here to experience life or to avoid life? Venky Rajgopal: Experience life, Sadhguru. Sadhguru: But right now, just see how many strategies you have as to how to avoid life. Venky Rajgopal: True. Sadhguru: First of all, if I utter the word “life,” for most people, they think about their work, their family, their car, their house and whatever else. No, these are all accessories to life. If you were here 200 years ago, your idea of accessories to life would be to have a nice buffalo in your house. Maybe now it is a BMW or a Bentley but it used to be a buffalo at one time. So accessories change according to the times in which we exist and where we are. This does not make life; these are just accessories. What you call as “life” is within you, but that dimension has never been touched, people are just busy with accessories. When I say accessories, I am not only talking about your home, car and clothing. I am even talking about your body and mind because you gathered these also. What you call as your “body and mind” you gathered over a period of time. Everything that you gather, at the most, you can temporarily claim “It is mine.” You cannot say, “It is me.” So because this one fundamental fact has not been grasped experientially, and what is “you” and what is “not you” is not clear to you, this whole struggle is going on. Give whatever you want to people, they are struggling with it. If they are poor, they are suffering their poverty. You make them rich, they suffer the taxes. If they are uneducated, they suffer that. You send them to school, eternal suffering. They are not married, they suffer that. You get them married – I won’t say anything. No children they suffer that; give them children, daily suffering. What is it that people are not suffering? If you suffer every aspect Fountainhead 0f Excellence of life, naturally you will pad up with an iPad. If you are padded up for life, that means “nothing should hit me.” No, life should happen to you in every possible way. your hallucination versus my hallucination, it will go on endlessly. After all it is a dream, we can change it. But they will not change it, because it is fixed dream. People come to me and say, “Sadhguru, please bless us, nothing should happen to me.” I say, “What kind of blessing is this? My blessing is let everything happen to you. Everything that is life, let it happen to you.” If you want to avoid life, there are more efficient ways to do it. If you want to avoid life, death is the most efficient way to do it. If you are alive and you try to avoid life, you will make yourself half alive – this is going to be torture. If we want to torture you, we won’t kill you. We hold your throat half down, then it is torture. Being half alive is always torture and that is all human beings are suffering. Out of fear of what may happen to them, they have made themselves half a life. Whatever happens, they suffer, whatever does not happen, they suffer. Nothing in particular needs to happen to them. The next step that is happening now is, in search of human wellbeing, we are looking outward. In looking outward, we are destroying our very sustenance of life. The Living Earth statistics say that if all the seven billion people acquire the kind of comfort and convenience that an average American citizen enjoys today, we need four and a half planets. But we have only half a planet – not even a full one. So, our idea of business, talking in trillions of dollars, is just a pipe dream that is going to burst. It has to burst. Anyway a whole lot of people are taking a one-way ticket to Mars, that may be a saving grace. Please export as many as you can, then maybe it is okay, not otherwise. On this planet, only that many people and that much can be done because physical material is limited. People come to me and say, “Sadhguru, I cannot take my mother-in-law, she is too much. My wife, she is impossible. My boss, I cannot.” I say, “Don’t worry, your mother-inlaw, boss, wife, husband, nobody is going to enter this ashram. You don’t worry, I’ll give you a nice place to stay, nice food to eat. You don’t have to do anything, no work. Just sit in the room. Every day, we’ll feed you, we’ll take care of you for the rest of your life. Only thing is, whenever I come and check, you must be joyful. That is the only condition.” Twenty-four hours you keep them in one room, they will go crazy without the mother-in-law, without the wife, without the boss, without the husband. The important thing is to know, when it comes to any kind of suffering, you are on self-help. You do not need anyone else’s help, you just sit alone for twenty-four hours and see, how many things you go through. When you are alone, if you are suffering, obviously you are in bad company. You have to fix that. If you fix this one thing and this company is pleasant and wonderful, then being with anyone, working with anyone, doing whatever we have to do is a natural outcome. Whatever is needed in the world, we will do. Otherwise there is no need to do anything. But right now, it is compulsive action. Whether the world needs it or not, you have to do it and in the process, the world is getting destroyed. In pursuit of human wellbeing, people have looked up for a long time. Now, you are sitting on a round planet. Not even on the North Pole – at a certain latitude, in Chennai, probably twelve degrees. And the planet is spinning. If you look up, invariably you are looking up in the wrong direction. You do not know what is up and down in this cosmos. Is it marked somewhere, “This side up?” You do not know and you are incapable of knowing. You cannot know what is up and down, you cannot know what is forward and backward. It is only contextually for practical purposes we say this. But in reality, you do not know. So if you look up, you become hallucinatory. The world has suffered because of these hallucinations. For the last 2000 years people have been fighting continuously – because 8 BUSINESS MANDATE | MAY-JUN 2015 Especially now, everyone of us have become superhuman beings in our ability to do things. When such tremendous capabilities have come to us, it is important that our consciousness is not still about how to make ourselves bigger than someone else. It is a stupid way to live. Our way of existence has to become far more inclusive. Our way of existence has to come from a deeper dimension than the way we are functioning right now because we are no more ordinary creatures. We are all superhuman beings by any context. Even people fifty years ago would consider you superhuman beings with the capabilities you have today. Do not take this for granted, this is not a small thing. This is a phenomenal time, that we exist here as superhuman beings compared to any other generation ever on this planet. But this intelligence and this competence could be our nemesis if we do not handle it intelligently. In 2008 when I went to the Economic Forum, just then the recession was hitting the Western markets and these 1200 people who control almost eighty percent of the world’s economy were all carrying long faces. Only the Indians were bursting around a little bit because they were running an “India Everywhere” campaign in Switzerland. So, they asked me to handle a session “Recession and Depression.” I said, “Recession is bad enough. You do not have to multiply it with depression. You always complained about work, this is the time to take a walk on the beach.” I told them, “See, the way you have structured the economic engine on the planet is such – if you fail, you’ll be depressed. If you succeed, we will be damned. I prefer that you are depressed.” Because right now, we have structured everything in such a way, if we really succeed, we will fail. This has to change. If this has to change, first of all the direction in which we search for our wellbeing has to change from outward to inward. If your wellbeing is within you, now you will look at what is the best thing to do. If you are searching for your wellbeing outside, you do not care what happens, somehow you want to do it. That is where we are still. We need to change because we are no more small creatures. We are super human beings. Fountainhead 0f Excellence New Insurance Bill 2015 D D Singh Member (Distribution), Insurance Regulatory & Development Authority of India (IRDAI) This article is a summary of the Keynote Address delivered by the Chief Guest Mr D D Singh during the Conclave on ‘New Insurance Bill 2015’ held on 20th April 2015. I would like to thank MMA and CAMSRep for giving me this opportunity to be here today and share my views on the New Insurance Bill. The previous speakers, Mr. Mehrotra and Mr. Manickam have touched many of the aspects of the bill in their speech. The Insurance Bill is generally perceived in the public brain as 26:49 transition and the Indian ownership of Insurance companies. These were the two most predominant headlines, which occupied the space of the print other media. There are however quite a few aspects in the bill which are focused on the Development of Insurance industry and the Benefit of the Customers. These customer centric aspects in the bill have unfortunately, not hogged the headlines. I don’t expect them to hog the headlines but at least these should be discussed and elaborated by the Consumer Activists and the Consumer Groups for the benefit of the customers. It is heartening to note that MMA is doing a good job in bringing out the important aspects of the insurance bill, which intends to give a lot of benefits to the customers. Agents to give best financial solution to customers…. The first and most important thing, which the Insurance bill provides, I think, is enabling and empowering the insurance advisors to provide good ‘insurance advice’ to the customers. It is not explicitly put that way; but it is what the bill implies. The bill states, all of you know, that the insurer shall be responsible for all acts of omissions of its agents including violation of code of conduct and liable to a penalty which may extend to one crore rupees. Good financial advice by Insurance advisors is possible only if the Insurance Companies provide good training to their agents and they make the agents totally adequate to give very good financial advice to the customers. Agents should understand the financial need of the customer; do a proper need analysis and give a very good financial advice to the customer. The insurance agents have now to become a true financial advisors and it will be the responsibility of the insurer and the insurance agents to develop this expertise. IRDAI has issued the first set of guidelines on ‘Appointment of Insurance Agents-2015’. The IRDA Agents’ 1 0 BUSINESS MANDATE | MAY-JUN 2015 Appointment Guidelines 2015 ensures that interests of the insurance agents’ are protected; the consumers’ interests are protected; and the Insurance Companies take keen of interest in building the capacity of the agents to guide the customers. The guidelines specifies that the Insurance Companies will provide training to the agents and build up the capacity of the agents to provide good financial advice to the customers. It is the responsibility of the insurance company to give a good training to the agents so that the customer’s finances are safe, and customer’s don’t feel that they have got a wrong advice. Insurance companies can use the resources available to them, external or internal, to adequately develop their agents knowledge and skills. The Agents Appointment Guidelines 2015 also prescribe there that agents can be given training in Skill Development. National Skill Development Corporation (NSDC) has been suggested for this purpose. The BFSI Sector Council has also been recommended as one of the channels for developing the skills of the agents to work in the market very effectively. Financial products cannot be sold just by anybody. All these words like ‘mis-selling’ which has dominated the newspapers for the last couple of years should not continue, and there should be ‘good financial advice’ rendered through trained and skilled agents. Multiple Options of Distribution Channels… IRDAI also tried to develop good distribution channels so that the customers can approach the distribution channels and purchase insurance. I hope, the day when you go and purchase insurance is very near! One such channel is the Common Service Centres (CSC). The insurance wing of the CSC channel has been developed in such a way that it is fully automated. A customer can go to the CSC center, select the product he wants, and decide on the sum assured, premium, mode of premium payment and the term of the policy. This will be the customer’s selection. After selecting this, the customer can put his biometric authentication through fingerprint; the entire ‘Customer Data’ is pulled from UIDAI – Adhar - and his proposal form populated. There is connectivity between Adhar and CSC for obtaining the data. If the nominee accompanies Fountainhead 0f Excellence the customer, the nominees biometric identification is also captured, the nominee data including the bank account where the money has to go in case of claim is also populated. The customer has already selected the product and the transaction is completed on the spot and the customer is issued the policy. This process is operating in one-lakh CSC centers, which have been enabled to provide on line insurance marketing. Customers should be educated to select and buy insurance products. Financial literacy is very important and the customers should understand that he has to select the product suitable to him. IRDAI has also developed other channels like the Insurance Marketing Firm (IMF). An experienced salesperson or agent can set up a Finance Outlet, get a license and sell all financial products there. The draft regulation is in public domain for comments. We have allowed the web-aggregators to advice on products. You will see advertisements from some of the web aggregators like Policy Bazaar. Web aggregators help the customer to compare different products and buy the product that suits the need of the customer. Online Marketing has also been approved for products, which the insurer wants to offer such products online and where the insurer does not have any conflict with other distribution channels. Wider Insurance Penetration…. Giving options to the customers to have multiple distribution channels options where he can make selection of product is the most important work, which has happened in the last couple of years in IRDAI. The Government is launching Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY); Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY) from 1st June 2015. These are the most innovative insurance schemes. These schemes are the successors to the Pradhan Mantri Jan Dhan Yojana in which around 12 crores of Bank accounts have been opened. All persons with bank accounts including persons enrolled under the Pradhan Mantri Jan Dhan Yojana will be covered under the PMJJBY and PMSBY. These are not subsidized schemes. The premiums are fully contributed by the customers. Anybody who has a bank account can buy this scheme. The maximum cover offered under Pradhan Mantri Jeevan Jyoti Bima Yojana is Rs.2 lakh of death cover and the accident cover under Pradhan Mantri Suraksha Bima Yojana is Rs.2 lakhs. The premium is Rs.330 per annum for Pradhan Mantri Jeevan Jyoti Bima Yojana and Rs.12 for Pradhan Mantri Jeevan Suraksha Yojana. On a total combination of Rs.342 per annum, that is Rs.1 per day roughly, you get Rs.2 lakh life insurance cover and Rs.2 lakhs accident cover. The customer can enroll under these schemes through the bank. These schemes will make a big impact on Insurance penetration and Insurance density in India, and will be the biggest paradigm shift. The insurance 1 1 BUSINESS MANDATE | MAY-JUN 2015 penetration that is at 3.9% is bound to reach new peaks. A lot of work is happening there. Some of the developments in the insurance sector will be the contribution of the Bill, some of the development will be because of the initiatives of the Regulator and some because of the initiatives of the Government. It cannot be said that the insurance bill alone is going to be the reason for paradigm shift; it is the insurance bill, the regulator, and the initiatives’ of the government, which will bring about the paradigm shift. Ultimately the people of this country are going to witness a paradigm shift in the insurance and financial markets. If every insurable person in the country has a bank account and an insurance account, I think, that will be the most creditable thing. It looks to me that it is going to happen much sooner than we ever thought. Hopefully in the same hall we will be talking about the new figures of Insurance penetration and insurance density in the MMA meeting next year! Stand-alone Health Insurance Vertical… The FDI increase from 26% to 49% was one thing and Indian ownership was another thing most of us know because they were hogging the newspapers. The new bill recognized Health Insurance as a separate line of business. Earlier health insurance was generally taken as part of Non-life insurance. Now it as a separate vertical. There are five Health Insurance Companies operating in this country. Every citizen needs health insurance, and I think there will be many health insurance companies operating in the future, which would fulfill the great demand. If we have more companies operating here, the cost will definitely come down which will again be good for the country. The Insurance bill has created that separate space for health insurance. Reinsurance Entry… All Indian insurers are eligible to set up IFSC Insurance Office (IIO) in SEZ to carry on Reinsurance Business. IFSC Insurance Office (IIO) is an office registered with the Authority to transact Reinsurance Business in SEZ. An insurer registered with a foreign Regulatory or Supervisory Authority can also set up IIO in a SEZ subject to certain conditions laid down in the IRDAI International Fountainhead 0f Excellence Finance Service Center Guidelines 2015. This will help in the development of reinsurance business. We have one Reinsurance Company, which is GIC-Re. Lloyds will also be coming into this country. The bill has allowed Lloyds to enter Indian market as a branch but even as a branch it will make a very significant impact. This is also a very important aspect of this bill. Redefined Nominations, Assignments… The previous speakers have discussed the changes in the provisions of Nominations and benefit thereof. The Insurance Act now states that policy can be assigned “Wholly or in Part”, which implies that now EVEN a portion of benefit proceeds of any Insurance Policy may be assigned as per terms agreed between the Assignor (P.H) and the Assignee, with or without consideration. Now a person can assign for Rs. 4 lakh for his housing loan and still have the other Rs. 6 lakhs and can assign the same to another bank for his child’s education. With the new Assignment clause, a person can use the Insurance policy very effectively. Most of the policies today have riders such as health rider or accident rider. These riders are also attached to the policy and the rider also goes to the assignee. If the policyholder suffers a health condition and if the policy is assigned, there are various questions as to who will get the rider benefit and because it is assigned, the assignee should give the discharge etc., the technicalities are very complicated. Now a person can assign the main policy and keep the rider with him. A person may need your Health Rider or Critical Illness rider at any point of time. This is another important aspect of the New Bill. Section 45 Emphasis… As per the Section 45 of the Insurance Laws (Amendment) Act, no policy can be called into question after three years of it being into force. This was an amendment to an earlier provision of the Insurance Act 1938 that said that a policy cannot be called into question after two years except cases of fraud. This will definitely protect customers interest. Removal of Licensing of Insurance Agents by IRDAI.. Licensing of insurance agents has been removed. This was one of the central points, which was often referred to as hindering the progress of the distribution channel. No more going to IRDA to get a license. In one stroke it has been said, “No licensing”. An eligible candidate just has to pass the insurance exam and approach the insurer with the insurance pass certificate to be appointed as an agent. It is as simple as that. A Class X pass certificate and insurance exam pass certificate are the basic requirements to be appointed as an Insurance agent. Insurance exam pass certificate is a must because the company is responsible for the act of the agents. Agents should have a minimum good amount of insurance knowledge. Many of these changes, which have been brought about, are mostly customer focused and they will ultimately help the customers to become more empowered to have his insurance policy well serviced. Summary These are the important aspects of the Bill. The Finance Ministry has almost finalized the two schemes viz. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) and they are likely to be rolled out by June. These two insurance policies will bring about a change in ‘insurance coverage’. ¾¾ PMJJBY and PMJSY will enable ‘insuring the uninsured’, ¾¾ Pradhan Mantri’s Jan Dhan Yojana will enable ‘banking the unbanked’ and ¾¾ MUDRA will enable ‘funding the unfunded’. If these three financial schemes work out, all the good things, which we wish to happen, will definitely happen! SAVE THE DATE! Dear Members, You are cordially invited! MMA Awards Function and MMA 59th AGM Friday, 3rd July 2015 at Hotel ITC Grand Chola, Guindy, Chennai-32 2.30 pm Seminar on ‘Managerial Excellence’ 6.00 pm MMA Awards Function & MMA 59th AGM 8.00 pm Cocktails & Dinner AGM Notice & Invitation will be sent to you shortly. Kindly block your diary and register your participation: [email protected] / 2433 3757 1 2 BUSINESS MANDATE | MAY-JUN 2015 Fountainhead 0f Excellence New Insurance Bill Vision and Paradigm Shift Facilitating Opportunity D K Mehrotra Former Chairman, Life Insurance Corporation of India & Chairman of the Board, CAMS Repository Services Ltd This article is a summary of Special Address delivered by Mr D K Mehrotra during the Conclave on ‘New Insurance Bill Vision and Paradigm Shift Facilitating Opportunity’ held on 20th April 2015. I would like to thank the organizers of this conclave, the Madras Management Association (MMA) and CAMS Repository Services Ltd. who have jointly organized this conclave on a very pertinent and important issue as on date. I would like to welcome the distinguished guests, the eminent personalities on the dais, friends from media and ladies and gentlemen. the exposure to 26% through FDI. The Industry opened up in 2000 and people thought that LIC being a public sector organization would face a big set back. But LIC had learnt, being in the process, to survive. More and more companies gradually started setting up in this country because of the large market potential. Penetration was very low at that point in time and is still low even today! Today we are meeting here to discuss one of the very important bills that has been enacted in the Parliament, the Insurance Bill 2015. As rightly said by my predecessor, the story of insurance is not new to this country. It goes back ages. Global players started entering India and forming small and big companies in life and non-life segments. At this time, the the industry faced a capital crunch and policymakers wanted to increase the FDI cap from 26% to 49%. The thought to first increase FDI limit to 49% occurred in 2008. Since then it had been deliberated upon over the years. Finally in 2015 the Parliament enacted the Bill that FDI can be increased to 49%. Now the questions before us are: Is this a paradigm shift? Is it going to give an opportunity to us? We know that $2 billion will flow into the country now and $10 billion in the long term. Is capital the only requirement to spur the industry growth today? Or are there other challenges also which we have to identify? As we all know the first insurance company in India, Oriental Life Insurance was set up in 1818 and it wound up in 1834. Subsequently the country saw many companies being established, both - private life insurers and non-life insurers. Today the oldest existing insurance company in India is the National Insurance Company that was founded in 1906 and is still in business. Taking stock of the performance of insurance companies, the policymakers in their wisdom decided to have one entity under which all these companies could be clubbed together and as such an ordinance was issued on 19th January 1956 nationalizing the life insurance sector. Thus, LIC came into existence on 1st September 1956 on amalgamation of 245 companies. Thereafter the journey started for insurance, moving along smoothly. LIC was a monopoly. We insured people; people came to us and we did not make much effort to reach out to people; they came to us because they had no choice. However, in the mid 1990s once again, the policy-makers thought that it was time to shake up the equilibrium, time to shake up this monolithic organization and see how to restructure this industry. Malhotra Committee was set up to look into the restructuring of the Insurance Industry and seek suggestions on the same. Subsequently post numerous discussions and deliberations on the subject, in 1998 the Cabinet decided that India will allow foreign participation in insurance through the route of FDI and FII to the tune of 40%. But a year later, in 1999, it was decided to restrict 1 3 BUSINESS MANDATE | MAY-JUN 2015 Every constituent of this industry has to understand and find out what are the challenges and the roadblocks. If you look into the performance of the industry, it is not a very happy scene. Performance had peaked in 2008 but subsequently there has been a slowdown in the pace. And today I believe that there is some de-growth in the industry. Even after almost 60 years what is it that is stalling growth? Is it capital or are there some challenges that we have to find out? Is it the distribution? Are the challenges pertaining to regulatory issues? Should there be innovation of products and technologies? Can all these challenges be addressed by increasing the FDI limit? Today we know that there is lot of euphoria. Money is going to come in; a lot of capital would flow and everybody is jubilant about that. But can this inflow of capital take the industry to a sustainable level over the next 10, 20 years? That is the real issue. If this capital is the only trigger, will it ensure that the industry reaches a level of sustainable growth or we need some other interventions? This is Fountainhead 0f Excellence what we are going to learn from the eminent speakers and panelists on the dais today. What are the issues we are facing today? How is it going to impact insurers? How is it going to impact the common man, existing and prospective policyholders. Suppose we believe that there is going to be geometric growth in the insurance sector in the next five years with this capital flowing in, are we prepared to manage this growth? Growth management is a very big challenge. This is the right time that MMA and CAMS Repository Services have come together to organize this conclave. The Insurance Bill has provided a lot of relief to the customers in terms of servicing and claim settlement. It has also taken care of the insurers’ interests of managing growth by envisaging that in future e-Insurance should be preferred, thereby giving relief to insurers considering the scale of operations they are likely to have. Can the 5 Repositories approved by the IRDAI play an important role in mitigating some of the issues or the pain points which the insurers are going to face in managing growth? The deliberations today will definitely address the inherent challenges which are faced by the industry and the challenges which we all can together as a team try to solve. We should start creating awareness among the people about the importance of insurance because I believe, I may be wrong, that Insurance is the most discussed subject but the least understood subject in today’s environment! A subject which was not discussed much four decades ago is attracting attention today and rightly so as insurance forms an integral part of the lifecycle of an individual. This is the forum where we request the experts to help us understand insurance; talk about the challenges and the benefits that would flow out of this new Insurance Bill to the customer, the insurer and the general public at large. giri brothers 43 Year rd Since 1973 For All Your Weighing, Billing Counting Machines & LED Lights Needs The Only Indian Company With International Quality Approval Weighing Machines From 1mg To 200MT Weigh bridges and Crane Scales LED LIGHTS Counting & Billing Cash Counting with Fake Note Detection Tamil ,Hindi , Marathi & English Billing Machine #24/51, Rajaji Salai, (Opp Clive Battery), Chennai-600 001.INDIA Ph: 044-2522 5401, Mob : 9841436535 Email: [email protected] , web : www.giribrothers.in 1 4 BUSINESS MANDATE | MAY-JUN 2015 NEW Fountainhead 0f Excellence Voices & Choices This article is a summary of Special Sessions on ‘Voices & Choices’ and ‘Voices of Triumph’ during the MMA Women Managers’ Convention held on 14th March 2015. As part of Annual Women Managers’ Convention 2015, with the central theme on Voices, a session was conducted by MMA on the relevant topic ”Voices & Choices”. Justice Prabha Sridevan, Former Judge, Madras High Court, was the Chairperson of this session. She is named as one of the 50 most important persons in the Intellectual Property World in 2012 (the only Indian) and in 2013. The speakers for this session were Ms. Apsara Reddy, Editor– in-chief, The Red Kite, Ms. Pushpanjali Banerji, Brand Director, Kyndal Group and Ms. Vasudha Chakravarthi, Nature Photographer, Film Maker and Entrepreneur. Justice Prabha Sridevan initiated the session stating that while the theme is on “Voices and Choices” she was not really sure whether the voices of women were really heard as loudly and clearly as they should be. She said that the women in the audience are the fortunate few who have a platform to raise their voices while most of the womenfolk in India are invisible. She insisted that our voices should speak of the ‘informed choices’ that we want to make. She read inspiring writings which reflected several views, including that of a Buddhist monk from the 6th century BC. She narrated a real life story of a woman who was a victim of acid attack by her husband. Apart from the scars, she almost lost her eyesight. The striking point of this case is that this woman did not sit back and suffer. She approached the court of law; took all possible legal remedies against her husband. She later forgave her husband, but decided that she would start leading her life on her own Justice Prabha Sridevan also narrated another story of a woman who was a victim of physical violence and was driven out of the house by her husband. This woman was not aware of the laws related to domestic violence and shared household. However, she was aware of what her rights were. She was strong enough to say that she would stay in the house and fight for her rights. Justice Prabha insisted that every woman should know her rights. She pleaded that we as the fortunate women should help make audible the unheard voices of the voiceless women. Ms. Apsara Reddy, a transgender woman approaches life with a simple goal, ‘to be true to herself’. She studied in Australia and London and completed a BA in Investigative Journalism and a MA in Developmental Economics. She has worked as a News and Current 1 6 BUSINESS MANDATE | MAY-JUN 2015 Affairs Journalist at BBC Radio London before handling the features operations of two leading dailies in India – The New Indian Express and the Deccan Chronicle. At the very outset, she made it very clear that she did not want to gain love and tolerance from everyone; what she needed was only acceptance. According to her, everyone deserves acceptance. She shared the battle, agony and trauma she underwent in the process of becoming who she is today. She said she does not believe in tiptoeing around who she is. She feels we should be comfortable in our own skins. She always takes pride in who she is. She stated that her success in breaking the glass ceiling, made it easier for other transgenders like her to be empowered. Everybody in this country of a billion plus people has the right to voice. She stated if her voice in India and in Tamil Nadu could be heard, then everyone should be bold to make their voices heard. According to her, the choices that we make are very important. She was of the opinion that being who you are should come from within. The choices you make should empower you to be a better individual; not to be someone based on others’ validation and approval. She has come through a rocky journey but she claims that such a journey would not be painful if one envisions one’s outcome. Fighting for women’s rights is tough; it is even tougher to fight for the rights of transgenders. She realized that before people could accept her, she needed to first accept herself. She expressed her gratitude to her family who were willing to accept her as she is. She stated that she was strong in using her voice to convince them to accept her as she is. She also believes that one should have a voice of reason and a voice of dignity. She appealed to the audience to withdraw from treating individuals as Asian, American, and European, Hindu, Muslim, Christian, male and female and connect with each other as human beings. She asked the audience why we are not able to connect with others as one talent pool with dignity and respect. She is very strong in her stand. She believes that God has a plan for everything. While some people asked her to change her choices, she was bent upon her convictions and continued to believe them. She insisted that we should have the courage to fight small-minded attitudes and follow through our choices. She said that there will be voices of dissent, discrimination and discouragement Fountainhead 0f Excellence but we should be determined to not give up on the course we have chosen. Ms. Vasudha Chakravarthi studied photography from Light and Life Academy, specializing in nature, travel and fine art. Her research led her to start Green Gurukul – a Vision house focusing on environmental balance, education and sustainability. Ms. Vasudha spoke on the lack of support for women entrepreneurs. She pointed out the various challenges faced by women entrepreneurs such as lack of financial support and other road blocks that are encountered in a patriarchal society. She quoted research papers of Nehru and Shubra Bharadwaj – assistant professors in Mathura University who have written papers about women entrepreneurs. According to their research, entrepreneurs play a very important role in the socio economic welfare of the country. They are innovators, researchers and risk takers of a company. Today business is built around human capital and women are one of the most valuable factors of production. Globalization and liberalization have encouraged women to become entrepreneurs and start new ventures. She also walked us through her own life journey. She shared the challenges she faced in accomplishing her goals. Against the wishes of her parents, she decided to enter the field of nature photography. She faced a lot of physical, mental and social stress in order to be successful in her field. The next speaker on the Panel was Ms. Pushpanjali Banerji, Brand Director, Kyndal group. She attributed her success to sheer luck of having been brought up by an educated, affluent family. At the same time, she also felt that attributing one’s success to luck may be one of the biggest mistakes women make. She quoted some research statistics which concluded that women feel external factors are the reason for their success whereas men feel success is dependent on them. She pointed out that women don’t negotiate for themselves. They have a negative co-relation to power and success whereas men have a positive one. Men reach out for opportunities without fear and women are afraid they will not be respected if they speak out too loudly. Her main concern is that very few women hold top positions in corporate houses worldwide. The situation is worse in India where only 9% of senior management level positions are occupied by women. Globally 20% of senior management positions are held by women in 2013 down from 24% in 2009. According to Grant Thornton International Business Report, about 38% of businesses worldwide have no women at senior management level! The situation is better in the Asian subcontinent as women representation is comparatively higher in Thailand, Singapore, Hong Kong and China. 1 7 BUSINESS MANDATE | MAY-JUN 2015 She feels that women’s economic equality is good for business. Companies will greatly benefit from increasing leadership opportunities for women which in turn will increase organizational effectiveness. It is estimated that companies where women hold three to four senior management positions score higher in all dimensions of organizational effectiveness. To her, the benefits are not only economical; they are linked with many other factors. When more women work, economies grow. She also shared about her personal life where she gets the utmost support from her husband and family members. She has passed through rough waves in her career as a woman living in a man’s world. She also expressed her distress over women who live a double life – who marry for the sake of parents or for getting a better life style. She says that these women have a lot of potential, but they give up and give in. Lack of self-confidence and their love for parents holds them back. After marriage, the husbands object when they want to take serious career decisions. The session was followed by a question & answer round. The questions were highly insightful and they were addressed by the three speakers and the chairperson in a stimulating manner. When questioned regarding the quota system for women, Justice Prabha Sridevan categorically answered that there is no need for a quota system for women. She said men and women are equal and one is not less than the other. More so, women are not neutral like watercolorless, odorless and tasteless. Women bring their varied experiences and diversity to the places where they work. Justice Prabha Sridevan concluded the session by thanking the panel members for their inspiring talk based on their experiences in their journey towards becoming successful women. Fountainhead 0f Excellence Voices of Triumph accomplishments include building up internal roads and connecting the village with the main road, opening up of a Bank and Computer Lab and setting up of Self-Help Group Centers to cater to 1000 women to make their livelihood, building up of toilets (for 900 houses, 800 toilets have already been built) etc., to mention a few. She narrated her journey as a Sarpanch of Soda village and the challenges she faced in transforming the village Soda on the development path. She spoke about how many of us living in urban areas choose not to live in rural villages which form the foundation of our country and are yet to be developed. She calls for a revolution to bring about positive change in rural India. City dwellers should work together and take the responsibility to improve the lives of their counterparts in villages. As part of the Women Managers’ Convention 2015, MMA organized a Session on the theme “Voices of Triumph”. The session followed the journey of women who have beaten the odds and excelled in their respective fields. Ms. Sarada Jagan, Managing Director (HR), The Sanmar Group was the Chairperson of this session. The Speakers were Ms Chhavi Rajawat, Sarpanch of Village Soda in Rajasthan, Wg Cdr Pooja Thakur, Indian Air Force and Ms Rasheeda Bhagat, Journalist. Enriched with over three decades of management consulting and industry experience, Ms. Jagan initiated the session with her insights. According to her, in most cases the ‘villain’ for women, tend to be other women and not men. She substantiated her stand by her own life experiences. After her marriage, she wanted to pursue her studies in a top management school in Mumbai. However her aspiration of getting a management degree was hampered by the Director of the college. The Director, a woman herself rejected Ms. Jagan’s application stating Ms. Jagan was married and hence supposedly would not be serious about her studies! Nevertheless, Ms. Jagan, fortified with her strong determination, did get admission into IIM Ahmedabad the following year and came out with flying colours, despite her other commitments. Ms. Jagan also added that today’s women suffer from the ‘superwomen syndrome’; they want to excel in every sphere, which can get tiring. There are many things that a woman has to manage and balance in her life. According to her, women should break stereotypes and become successful in their lives and career. Ms. Chhavi Rajawat holds the credit of being the first woman MBA Sarpanch for the village of Soda in Rajasthan since 2010. During the first five years of her tenure as the Sarpanch, she put her heart and soul in transforming the village into a model community that would serve as an inspiration to rural areas in India. The highlight of her 1 8 BUSINESS MANDATE | MAY-JUN 2015 She narrated the inspiring episode of her struggle to desalt the water reservoir in the village. The ground water in the village was declared unsafe even for the purpose of irrigation owing to natural contamination. The reservoir in a village is the lifeline of its people. For desalting the reservoir, huge financial support was needed. While the government and politicians did not come forward to finance the desalination project, she managed to raise some funds with the support of her own family and friends to kick start the project. The rest is history. With the will to succeed, Ms. Chhavi Rajawat has tackled challenges diligently and hence her re-election as Sarpanch for village Soda is no surprise! Ms. Rasheeda Bhagat, another woman of substance has broken many stereotypes, started her talk with a sharp protest on the ban of the documentary film on Daughter of India recently produced by a British Journalist. Being a journalist for 36 years and her versatile experience in writing stories mainly on rural issues, she expressed her distress over the development of village girls. She says the predictable dreams of village girls to become a teacher or a doctor or even a Chief Minister, will hardly become true given the condition of schools in villages. Her concern is that if girls in villages are pulled out of school on attaining puberty, there is no scope for them to pursue further career prospects. As an avid traveller, Ms. Bhagat has travelled across countries during her profession as a Journalist. She narrated her visit to Iraq during the US War on Iraq and the dilapidated condition of women in Iraq. She was shocked to see educated career women being forced to leave their jobs after the Shia Fundamentalists took charge of Iraq following the war. She voiced the concerns of women she came across during her travel to Afghanistan. Being one of the first women reporters, she faced gender discrimination in her career after the birth of her first child. According to her, male dominated corporate world Fountainhead 0f Excellence cannot stand the growth of a woman. However, she was strong in her convictions and battled all odds to reach where she is today. She feels that violence against women begins at home. “Although we talk of rapes on roads, many children are molested at home itself. Many mothers keep quiet about this and do not want to expose the real situation. Some don’t even want a girl child to be born. Under such circumstances in the society, some women still rise to the top. Salute to them!” The next speaker in the panel was Wg Cdr. Pooja Thakur. The first Lady Officer to head the inter-services Guard of Honor during the visit of the US President Mr. Barack Obama to India during the Republic Day Parade, Wg Cdr. Pooja Thakur needs no introduction! Ms. Pooja joined the Indian Air Force in 2000. She feels that difficult experiences help stretch our capability. She substantiates this with her own experience after joining the Academy where she had grueling routines, waking up at 4 am and running 10 kms with a heavy back-pack. When her parents asked her to drop out on witnessing her troubles, she followed the 5-seconds rule and decided to stay back in the Academy and here she is today! She says that women play multiple roles in life – a daughter, mother, daughter-in-law, and wife and so on. 1 9 BUSINESS MANDATE | MAY-JUN 2015 Women not only have voices of their own hearts but also voices of commitment at home, commitment to career, dreams and so on. Small or big, everyone fights a battle every day. So, women should listen to their inner voices in order to choose the right path, whether it is with respect to their career or with respect to their married life. When she had a 2-month old child and had to report back to duty, she took a conscious decision of returning to work knowing that she will receive support from her in-laws and also from her own family. She says that there is nothing wrong in taking help from others. Taking help does not mean that one is weak. As a woman who is open to new and challenging experiences, Ms. Pooja took up sky diving. She feels sky diving has increased her internal and external strength. Though she desired to learn sky diving, she had some apprehensions and fears while actually trying it out. By taking help and support from her instructor she was able to succeed in her passion. The session concluded with a Question and Answer round where the speakers and the chairperson provided some very valuable insights to the thought provoking questions. Edited and Summarised by: Anisha Sequeira Consultant, Cerebrus Consultants Fountainhead 0f Excellence From an Unknown Blogger to a Best Selling Author Preeti Shenoy Best Selling Author This article is a summary of Keynote Address delivered by Ms Preeti Shenoy during the Validctory Session of MMA Women Managers’ Convention on the theme “Voices” held on 14th March 2015. I have a strong Chennai connection as I finished my schooling in Kendriya Vidyalaya located in IIT Madras. I attended all the sessions during the morning and it was wonderful to hear all the women speak. Keeping in tune with today’s theme which is Voices, I am going to take you through my journey from an unknown Blogger to where I am today. I must tell you that I keep hearing voices from my head. My job is to translate those voices into books. That is what my connection with voices! I think, six years back I don’t think MMA would have invited me. Six years back I was an unknown someone. How did I get to being an unknown someone to where I am today, one of the highest selling authors in the country? More importantly, I am going to share what are the lessons I learnt along the way. Before that let me tell you something about my work. I have written six novels so far, the first one came out in 2008 and every year since then there has been a book from me and they have all been on the Best Seller List. Apart from writing, I also make portraits. I make pencil portraits. I also do Surreal Art. Apart from this I do paper quelling which is an 18th Century Art from Italy. People used to wonder at my works and say that I am good at multi-tasking. Honestly I do only one thing at a time. What are the key things which have helped me to come to where I am today? If I look back at my journey I could pin point a few key things which I did and I want to share them with you. I would call them as the “Five lessons for personal growth”. Get out of your comfort zone… The one thing that is very important if you want to take that one step ahead is, get out of your comfort zone. Most of us are so cozy in our comfort zone; we don’t want to get out because getting out is uncomfortable and none of us likes to feel uncomfortable. In my case too, it was the same. I was happy doing what I was doing -workshops for children. But in 2006 a very big tragedy happened with me. I lost my father with whom I was very close. One moment he was with me and in the next moment, in the middle of a conversation, he passed away! He was hale and hearty and nothing was wrong with him. That came as a huge blow to me. I did not know what 20 BUSINESS MANDATE | MAY-JUN 2015 hit me. I sunk into a black hole; there was no other way but to claw my way out of that hole and it was something which I had never experienced before. But I had two young children and so I had no other option but to put on a smile on my face and attend to them. To get over this deep grief, what I did was that I started a blog. At that time I did not even know what a blog was. I started it anonymously under the name of PS and no photograph of mine was published. I was so scared to reveal my name. Gradually lot of people started reading my posts and my posts became very popular. It was nothing great, I used to post little snippets and I posted only positive thoughts. I did not want to feel down and my blog grew in popularity. I suddenly found readers from all over the world, from UK, US, Australia, Poland, Netherland and they started writing back to me. They all wanted to know who this PS was. They wanted me to put up my photograph. I was so frightened and put one small pixilated photo by which even after enlarging, they could not make me out at all! In January 2007, one of my blog posts got picked up and that post won the Perfect Post Award. That post was about my dad! That came as a huge pat on my back. I realized that my writing was good and there were lot of readers for my blog posts. At that time my greatest desire was to see my name on print. All along I was writing only online. Now I thought I should write in some newspaper and my name should be printed there. I approached one of the local papers which are given free in the neighbourhood, showed them the prizes and certificates that I had won during my college days and told them that I had no background in journalism but I wanted to write for their paper. They gave me my first assignment to write 500 words on calendars. After all there are day, date and month in a calendar and I was appalled how I would write 500 words on calendars! I had already dived in and there was no way to swim back! The Executive of the Paper asked me to go with him in Pune and meet people and take their views on calendars and go ahead writing about calendars. I was initially scared about that person but he turned out to be a gentleman. I wrote the piece and it got published and it was the moment that I actually could see my name in print. After that I continued to write for them. Then I approached Times of India. The Editor loved my work and took me on board of Fountainhead 0f Excellence Times of India. Then I wrote for Readers Digest and many other magazines. My poetries got published in the Sulekha book series. Some of my pieces got published in the Chicken Soup for the Soul. The result of all of these is my first book “34 Bubble Gums and Candies” which was the first creative nonfiction to ever come out in India. It was all a collection of my blog posts. That is how my first book came to be. Embrace your Rejections… However, it was not a smooth sailing from there. Publishing one book does not make things easy for the author! At that time I moved to the UK and there was a big lesson waiting for me to learn which was, ‘embrace your rejections’. In UK I came across what is called Bipolar Disorder and I researched on Bipolar Disorder for two years and wrote the book “Life is What You Make it”. What happened was that it got rejected not only in India but in UK too. It got rejected 39 times! The rejection was across the world as though nobody would want to read anything about mental disorder. But I have invested two years of my life to that book. Finally a small time Publisher from Delhi agreed to publish my book. He looked at the book and asked me to cut out the number of words from 1, 00,000 to 60,000 words. I did that and modified the book which turned out to be a great book and the title continues to be the highest selling even today. In 2014, it was the highest selling title. After that many Publishers came back to me and said that they wished they had accepted this title when they initially got it! The lesson I learnt is that “If you are rejected, don’t ever take it to heart because you will get real rejections in life”. The rejection what I mean here is the real rejection in life say a promotion that you are due or the job you are hoping to get. When you have invested something of yours and you have not got it, embrace such rejections because it is happening for a reason and you are destined for something better. Discipline your routines… The third lesson which I think has stood me in great steed is discipline. I cannot emphasize enough the importance of discipline. When you say “best selling author” most people think that my life is really rosy and glamorous surrounded by photographers and audience surrounded for autographs! Yes! My life is like that, but only for 10 days of a year. The other 355 days of the year is really strenuous. I sit day after day and night after night and I write, write and write! In any field, I think discipline is paramount. When you say ‘discipline’ what comes in your mind is the PT master standing with a stick in the hand in the school! I don’t mean that kind of a discipline. What I mean as discipline is choosing between what you want now and what you want most. Make that choice. You have to give up what you want now in order to achieve what you want most and that is discipline. That is going to take you a long, long way. Whether it is to lose weight or to write a book, when you really want to accomplish something that you have always wanted, discipline is paramount. 2 1 BUSINESS MANDATE | MAY-JUN 2015 Branch out, innovate… Sometimes what happens when you are going along our chosen path, you might come across road blocks. You may not be able to move any further and grow any further. A little plant grows up to certain level and stops growing. At that time, what we do is that we branch it out. In my writings, I do different kinds. I write a news paper column, (It is out in the Financial Chronicle on every Saturday). I write novels. I write opinion pieces. I write different kinds of things which are essentially ‘branching out’. Lot of people ask me whether I am facing writers’ blocks. I have never faced any writers blocks because I am doing different things. In your career life, if you are facing a road block, may be, the universe is telling you to try something else. May be it is directing you on a different path. It is extremely important to branch out, innovate and to do different things. Of course, if you are happy doing the same thing day-in and day-out, and you don’t want to do anything else, that is fine too! But according to me, if you keep doing the same thing every day, you stop growing at some point. I think growth is extremely essential. I think you grow old when you stop your personal growth. Mentally if you are alert and trying out new things, I think you remain young forever. Gratitude.. I cannot tell you how important it is to be grateful in life. All of us sitting here are extremely privileged. We have access to the computer. If we are able to communicate with each other, and if we are able to connect to people like this in a hotel, we are so privileged for which we have to be grateful. I get thousands of letters every day and I shall share some of them with you with their prior permission. People tell me how much my writing has changed their lives. This is a letter from a young boy whose mother is a single mother and how my book helped him to get acceptance. This is a letter from another person who had a psychological problem and how my book had helped him overcome his mental imbalances. I feel so grateful to be able to impact someone’s life in a positive manner. It is important to feel grateful because what we think we create; what we feel we attract; what we imagine we become. Trust me; you can attract anything to yourself. These are the lessons I learnt which I hope will help you all too. Fountainhead 0f Excellence Building High Performance Teams Using ‘S.C.O.R.E’ Framework Prof Sattar Bawany CEO & C-Suite Master Executive Coach of Centre for Executive Education & Senior Advisor to Eduquest International Institute Introduction “Every company faces specific performance challenges for which teams are the most practical and powerful vehicle at top management’s disposal.” - Jon R. Katzenbach and Douglas K. Smith (The Discipline of Teams, Harvard Business Review, 1993) Many of us find ourselves working on teams these days, and are probably quite familiar with the advantages and frustrations of this type of work. In many ways, working on teams can be a positive and productive experience. It provides opportunities for collaboration, the synergy of diverse skills, and collegial support. However, team work also raises issues of less autonomy, accountability to colleagues, the requirement of frequent communication, and group problem solving. A consistent challenge is getting individuals to work together effectively on teams when individual members have differences in communication styles, project management priorities, time management, information gathering and decision making. From our consulting experience, in Developing High Performance Teams in both regional and global corporations, we found that most, if not all, of their senior leadership teams advocate teamwork. And they should. Teamwork represents a set of values that encourage listening and responding constructively to views expressed by others, giving others the benefit of the doubt, providing support, and recognising the interests and achievements of others. Such values help teams perform, and they also promote individual performance as well as the performance of an entire organisation. But teamwork values by themselves are not exclusive to teams, nor are they enough to ensure team performance. Leading Teams to Success Jon Katzenbach and Douglas Smith, in their ground-breaking 1993 HBR article, The Discipline of Teams, define a team as “a small number of people with complementary skills who are committed to a common purpose, set of performance goals, and approach for which they hold themselves mutually accountable.” That definition lays down the discipline that teams must share to be effective. Katzenbach and Smith discuss the four elements - common commitment and purpose, performance goals, complementary skills, and mutual accountability - that make teams function. They also classify teams into three varieties - teams that recommend things, teams that make or do things, and teams that run things - and describe how each type faces different challenges. Groups don’t become teams just because that is what someone calls them. Nor do teamwork values alone ensure team performance. So what is a team? How can managers know when the team option makes sense, and what can they do to ensure team success? Katzenbach and Smith answer these questions and outline the discipline that defines a real team. The essence of a team is shared commitment. Without it, groups perform as individuals; with it, they become a powerful unit of collective performance. The best teams invest a tremendous amount of time shaping a purpose that they can own. They also translate their purpose into specific performance goals. And members of successful teams pitch in and become accountable with and to their teammates. The fundamental distinction between teams and other forms of working groups turns on performance. A working group relies on the individual contributions of its members for collective performance. But a team strives for something greater than its members could achieve individually: An effective team is always worth more than the sum of its parts. The authors identify three kinds of teams: those that recommend things—task forces or project groups; those that make or do things—manufacturing, operations, or marketing groups; and those that run things—groups that oversee some significant functional activity. For managers, the key is knowing where in the organisation these teams should be encouraged. Managers who can foster team development in the right place at the right time prime their organisations for top performance. 2 2 BUSINESS MANDATE | MAY-JUN 2015 Fountainhead 0f Excellence ‘S.C.O.R.E.’ Framework for Developing High Performance Teams Teams have become a principal building block of the strategy of successful organisations. With teams at the core of corporate strategy, your success as an organisation can often depend on how well you and other team members operate together. In today’s highly networked business environment, teams are critically important to getting work done. Yet not all teams are created equal. Some fail to perform, or they perform below expectations. Some start out well but later lose their focus and energy. Teams are extremely valuable if they are working well. They are very costly if they are not. It is critical for managers and team leaders to find ways to ensure their teams are working effectively and are achieving their results. In most teams, the energies of individual members work at cross-purposes. Individuals may work extraordinarily hard, but their efforts do not translate into team effort, and this results in wasted energy. By contrast, when a team becomes more aligned, a commonality of direction emerges, and individual energies harmonise. You have a shared vision and an understanding of how to complement each other’s efforts. As jazz musicians say, “You are in the groove.” From experience gathered through team effectiveness consulting engagements, it is found that a high-performing team demonstrates a high level of synergism – the simultaneous actions of separate entities that together have a greater effect than the sum of their individual efforts. It is possible, for example, for a team’s efforts to exemplify an equation such as 2 + 2 = 5! High-performing teams require a complementary set of characteristics known collectively as ‘S.C.O.R.E.’ (See Figure 1): 1)Cohesive Strategy and shared purpose, 2) Clearly defined roles and responsibilities, 3) Open and transparent communication, 4) Rapid response in adapting to a changing environment, and 5) Exemplary and effective team leadership. FIGURE 1: Characteristics of High-Performing Teams 2 3 BUSINESS MANDATE | MAY-JUN 2015 Fountainhead 0f Excellence The characteristics of each element of ‘S.C.O.R.E.’ are outlined in Table 1 below. Tabel 1 Characteristics Description S: Strategy and Purpose High-performing teams with a cohesive strategy and team purpose will demonstrate why they are in existence by articulating a strong, uniting purpose that is common to all team members. They will describe how they work together by defining team values and ground rules or team charter. Finally, they will be clear about what they do by defining key result areas. C: Clear Roles and Responsibilities Successful teams determine overall team competencies and then clearly define individual member roles and responsibilities. High-performing teams realistically examine each individual’s responsibilities in terms of personality, interest and ability, resulting in an accurate understanding of each member’s accountability and contribution to the team. O: Open Communication Communication is the key component in facilitating successful team performance; its lack limits team success. Effective communication relies on the proper use of communication channels such as e-mail and voicemail. R: Rapid Response A high-performing team needs to be adaptable and respond quickly, as necessary, to changes in the environment, using creativity and ‘outside the box’ thinking. When faced with a problem, these teams brainstorm possible solutions and create innovative resolutions. E: Exemplary and Effective Leadership An effective team leader is able to adjust his or her style, as necessary, depending on the task at hand and the skill level of each team member performing that task. The team leader also plays a critical role in raising morale by providing positive feedback and coaching team members to improve performance. Case Study – Turnaround of a Highly Dysfunctional Team The client is a leading Fortune 500 Information Technology company dispatched a team of highly qualified and experienced IT engineers to deliver a large-scale strategic project for one of their clients in the mobile telecommunication industry. Sustaining market leadership for this client is critical for the success of this firm. However, high employee turnover, especially amongst the mission critical talents, had created misalignment in what was once a strong performing team. Moreover, as competitors encroached, relationship management was critical with this strategic account. All this transcended the sound technical expertise of the IT engineers whose demonstrated primary form of communication was email. There was a lack of direction and clarity on the respective project team members’ role and responsibilities, which was compounded by the relatively ineffective team communication which resulted in poor performance and results. We introduced the CEE ‘S.C.O.R.E.’ Framework through facilitation of a series of team effectiveness meetings and workshops. The project team achieved breakthrough results in customer satisfaction, company, employee, and operational value. Thanks to the team’s shortened response times and improved communication, project delivery was achieved within budget and on time. Relationship management became second nature as team members became more expansive leading to the early exploration of new business opportunities. A post customer satisfaction survey confirmed acknowledgement of the value that our Client provided to their customer. Finally, our Client preserved its strategic account and strengthened the customer relationship thereby sustaining market leadership. The project team’s ultimate proof of transformation was its unanimous decision to distribute among all team members annual performance bonuses previously assigned to a select few. This presents evidence that high performance teams not only impact the organisation and marketplace but above all, the gratified individuals that constitute them. Conclusion The success of a team should be measured at regular intervals so that team spirit can be encouraged, either through celebrating achievements or through sharing problems. In terms of measuring success, it is perhaps easier to gauge the progress of a sports team than it is to rate the performance of work-based teams. For example, the performance of a sports team can usually be tracked by league tables. Working as part of a successful team makes work enjoyable. It provides employees with a supportive work environment and enables them to address any conflict that might arise in a constructive way. In high-performing teams, leadership shifts during the stages of team development based on team needs. Unlike organisational leadership, which remains somewhat constant, team leadership can shift from very directing, when the team is being formed, to more delegating, when the team is functioning effectively. To transform into a high performance team, an easily implementable framework such as ‘S.C.O.R.E.’ would assist towards achieving that end goal. 24 BUSINESS MANDATE | MAY-JUN 2015 Fountainhead 0f Excellence How to benefit from the Indian stock market? N Kannan CEO, Wealthbull Services Exhibit 1.2 We live in a world of instant gratification, the world of the quick fix. Retail investors want quick money in the financial market. However they seldom realise that it is too difficult to make money in a short term. Staying invested in the market over the long term has historically paid off. Plenty of research suggests that investing in the stock market over the long term produces a return that can beat inflation Take for example the case of Infosys 1993 Infy IPO investor gets 100 shares at 95 /Share Year Corporate action Shares 1994 1:1 Bonus 200 1997 1:1 Bonus 400 800 1999 1:1 Bonus Split to Rs Nov-99 5 face value 1600 2004 3:1 Bonus 6400 2006 1:1 Bonus 12800 2014 1:1 Bonus 25600 The above table informs if one would had invested a paltry sum of Rs 9500 in the Infosys in the year 1993 now it would be worth around 5.5 crores. It is not only Infosys which rewarded the investors. Almost all the quality stocks have rewarded the long term investors may be not to the extent of Infosys but they have all out beaten the other investment classes. Many stocks have rewarded the long term investors and here the some of the pictorial representation of them. The following stocks inform how investors would have made killing money in stocks if they preferred staying invested in the stock market for long term gains. Exhibit 1.1 shows that if one would have invested 1 lakh in Astral polytechnic in the year 2010 would have reaped in 50 lakhs in a span of 5 years. Exhibit 1.1 Exhibit 1.2 shows how a 1 lakh in invested in the Symphony in the year 2010 would have transformed into a whopping Rs 15 lakhs. 2 5 BUSINESS MANDATE | MAY-JUN 2015 There are plenty of examples in the Indian equity which could have fetched decent returns if one looked for long term gains. The problem with the retail investors is that they tend to judge success or failure over very short periods – a day or maximum a month. The simple nature of the market to show the price has put the retail investors in a quandary. The volatile nature of the market has forced the retail investors to trade in the market. If you are planning to invest your money into the market, or have already invested with a goal to achieve capital appreciation, staying invested makes more sense than moving in and out of the market. Every good financial advisor preaches and practices the mantra - “time in the market is more important than timing the market”. But this is easily said than done. That is the reason why 97% of the retail investor loses money in the stock market because they try to time the market and would like to be traders. In order to cultivate a better investing habit it is better to follow Peter Lynch advices. Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, during which time the fund’s assets grew from $20 million to $14 billion. More importantly, Lynch reportedly beat the S&P 500 Index benchmark in 11 of those 13 years, achieving an annual average return of 29%. This record is not beaten so far by any fund managers in the US. Lynch after his retirement wrote several books on how to beat the market but one of the best advice of Peter Lynch is: Buy what you know: Lynch believes that the average investor knows more than they think. Not only do you consume an array of products and services on a daily basis, but you’ve developed unique career insights that can give you a leg up on the Street. Put them to use! Invest in what you know, understand, and are comfortable with, and leave the rest for the “pros.” Let me explain how you would have benefitted from this simple concept given out by Peter Lynch. Indians have been in love with Pizza in the recent times. Domino’s pizza is a dominant player in pizza markets and Jubilant Food Works Ltd holds the master franchise for Domino’s Pizza in India, Nepal, Sri Lanka and Bangladesh, and also for Dunkin’ Donuts in India. If you loved pizza you would have bought it in IPO at the issue price of Rs145 in the year 2010! Even on the listing day the stock commanded 58% premium. Today the stock is trading close to nearly 1500 which mean we could have gained 10 times of our initial investment. Having understood about the benefits of long term investment let us milk money from the Indian markets. Fountainhead 0f Excellence Registering Memories Gp Capt R Vijayakumar, VSM presenting memento to Mr G S Ramesh during the MMA-Cambridge English workshop on ‘India: a world-class workforce? What is needed?’. Ms Angela ffrench delivered the Keynote address during the event Mr R Srikanth, Vice President, MMA welcoming the dignitaries during the conclave on ‘New Insurance Bill 2015’ organised by MMA in association with CAMSRep (L to R) Mr C Siva Kumar, Mr Narain Karthikeyan, CA T N Manoharan and Mr Achanta Sharath Kamal during the talk on ‘Success Stories - How it was done!’ organised by MMA (L to R) Ms Apsara Reddy, Ms Pushpanjali Banerji, Justice Prabha Sridevan and Ms Vasudha Chakravarthi during the Special Session on ‘Voices & Choices’ during the MMA Women Managers’ Convention 2015 (L to R) Ms Rasheeda Bhagat, Wg Cdr Pooja Thakur, Ms Sarada Jagan and Ms Chhavi Rajawat during the Special Session on “Voices of Triumph” during the MMA Women Managers’ Convention 2015 Mr Ajay Antony, Vice President. T.I.M.E Pvt Ltd during the Special Session on “Athena – The Great Mind - Quiz” during the MMA Women Managers’ Convention 2015 (L to R) Dr Renuka David, Ms Sangeeta Shankaran, Ms Pavitra Singh, Ms Sushila Ravindranath and Ms V Sudharma during the Panel Discussion on “Voices Through the Ages” during the MMA Women Managers’ Convention 2015 Mr Raju Venkatraman, President MMA presenting memento to Ms Shobhana Ramachandran, Convention Chairperson & Managing Director, TVS Srichakra Ltd, during MMA Women Managers’ Convention 2015 26 BUSINESS MANDATE | MAY-JUN 2015 MAKING INDIA THE GLOBAL TALENT HUB AREAS OF TRAINING LEADERSHIP AND PEOPLE MANAGEMENT PROGRAMME for all levels of Working Professionals CEE-CLPM MASTERCLASS WORKSHOPS for CEOs, CFOs, Directors and Presidents INNOVATIVE LEARNING SOLUTIONS (eLearning) Over 200 eLearning Modules Across 10 Strategic Areas EMPLOYABILITY SKILLS AND PERSONAL EFFECTIVENESS PROGRAMME (ESPEP) GLOBAL EXPERIENTIAL LEARNING PROGRAMME (EDUTOUR) Eduquest International Institute Pte Ltd 1, Sophia Road, Peace Centre, # 07-13, Singapore 228149. Tel: (65) 6338 7151 | Mob: (65) 8499 7151 Email: [email protected] | www.eduquest.com.sg Eduquestindia Institute Pvt Ltd 21 Krishnama Road, Nungambakkam, Chennai-600 034, Tamil Nadu, India. Tel: (91) 44 4238 2200 | Mob: (91) 988 404 2200 Email: [email protected] | www.eduquestindia.in
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