Friends

We all are passing thru challenging times. New definitions and words have become buzz words these days. Recession, Depression, Global meltdown, slow down etc. etc. are being used in most of the conversations. Surprisingly every one also agrees that the boom was excessive and they know it is going to happen. No one agrees it is unexpected.

This is the real test for all of us and once the test is over, those who would survive this will grow faster and those who do not learn the lesson would have to go through one more recession. In my view the recesion period is just like an annual examination which is must for elevation to next class. If you pass, it is great , if not then again cyclical recession would be there soon . We learn, grow, earn, build teams, net workings, relationship during boom time. It is always fun to have all in that time and then the cycle comes to the recession and every thing is put to test. All business principles, friends, teams, relationships have to pass thru this test.

The result teaches many lessons and helps in correcting ourself and move further. This is the time when you again prepare your self to enjoy the coming boom time.

My point to share with you is that recession is must for our consolidation and growth and we shall accept it as part of the business cycle. It is like bitter medicine needed for a sick body after lot of enjoyment, parties and fun.

And once this cycle is over, we will gain get chance of enjoying boom time. So enjoy and cheer up. This time is not going to come soon.

cpjain

The Ten Commandments for Business Failure

Friends

Just finished a nice book "Ten Commandments for Business Failure" by Mr. Donald Keough (ex President Coca Cola). He has rich experience of about 60 years in business and has concluded that sure shot guarantee of failure in business are following 11 commandments:

1. Quit Taking Risks

2. Be Inflexible

3. Isolate yourself

4. Assume infallibility

5. Play the game close to the foul line

6. Don't Take time to think

7. Put all your faith in experts & outside consultants

8. Love your bureaucracy

9. Send mixed messages

10. Be afraid of the future

11. Loose your passion for work- for life

A great book, so compact that a person of such a high stature telling the crux of his life experience. I would say it is a great gift by Don to the world present and future.

cpjain

Price of Failure: Much Higher than the cost of Success

Friends
Whenever we pass through the market of a city, we notice lot many people sitting on roadside waiting for job. To be specific there are points in every city where the daily wage earners gather in flocks and as soon as some one come to offer work they surround him and hardly one or two of them gets job and the rest wait for another such customer. It happens every day in every city of our country. Almost 60% get job and the rest go back to their homes after finishing their tiffins or may be with tiffin still filled up. Their spouse prepare the tiffin in early morning so they reach to the point in time and then try for the job. I believe out of 30 days, they get job only for 18-20 days.
Similarly, whenever we pass through the streets of any city, lot many people sleep on road side in all weather. They dont have good clothes or household equipments. May be they struggle whole day for their bread and sleep late night. They woke up early too and never dream any thing. Their kids inherit the same or even worst situation and life goes on. It is touching more in rainy and winter season.
Also, Whenever we go to temples lot of beggers await for some donation. They use every trick of earnign money but rarely are able to earn comfortable bread for them and family. These days we can find such people outside the restaurants, theaters, shopping mall and railway stations.
My point to discuss is what price they are paying for failure? Isnt it the price of failure which not only they paying but also forcing their kids and future generations too? Isnt this price too much as compared to the price of success which is only some efforts on the part of education, some days of poverty or may be some days of avoiding bad habits?
In my view the price of failure is much higher as compared to the cost of success. However initially cost of success looks much higher than the price of failure. Sometimes we give more preference to the social obligations then the study of kids or give excess love so the kids avoid study. The ultimate result: A huge price of failure.
cpjain

Political System: Does it need to be changed?

Friends
The atmosphere around our country is quite uneasy. people are not comfortable with the happenings in last couple of weeks or rather in last one year. Politicians are quite smart to guage the mood of the public as they know how to tame us, and hence just doing some adjustments to show the public that they are acting for our benefit. Probably we know and understand too but our memory is not long lasting and that is what they misuse. Soon we would forget and move closer to politicians for petty individual benefits.
I strongly feel that the existing electoral system needs to be revamped as per the prevailing situation. It can be like the USA where the head of state is elected by public and not by the MPs we elect. In present system the regional parties are too strong and the whole nation dance to the tune set by them. If we are really serious to save our self, our country and ofcourse the coming generations, we need to seriously looked into this issue and urgently. Let there be open discussion on this topic. I know there would be strong resistence, particularly by those who are masters of manipulative and short sighted politics, but still it should be definitely debated.
Present political system lures towards manipulations, corruption, short sightedness and irresponsibility in politicians.
cpjain

Do We Deserve Democracy?

Friends
Every Indian knows what is happening to us and what our kids are going to inherit from us as an asset. They will get the hate, regionalism, terrorism, polluted world and all.This mess is our own creation and this is the result we are facing now. It is really disgusting to even discuss this issue but what else we can do? No wrong, we cant take shelter behind these silly words, "what cant we do". This should be the slogan now for all indians.
In my view, this seems to be the result of democracy we are enjoying since last 61 years. A democracy which is totally dependent on vote bank politics, appeasement of various casts, creed and clolour. This is the Democracy which is fully supported by the politicians who always have limited vision, never care about the nation but we allow them to rule. This is the democracy which basically is run by about 10000 families of the country. Any adition into that is not possible unless one gets licence from these powerful politician families. What else we can expect friends?
We Indians in last 5000 years of civilised history, as far as I understand have never been into democracy except for the past 61 years i.e. almost 1% of the civilised period. Do we really deserve this type of system? I think we need to shelve this system for some time and let the government run by the dictators who would at least take strong steps in the direction of curbing terrorism, who would work above vote bank politics and would have strong will power to act. In present political system, every politician is busy in holding his vote share at any cost. They are since long doing this by appeasing different communities or the region. In my view it is high time that we unmask the politicians in the best interest of the country or else face the dictatorship.
Wish you agree to my comments.
cpjain

To be Rich you have to Own Stapler

Dear Friends
Recently I came accross to this comment by a very legend managment cosultant. He mentioned that you are Rich or definitely going to be rich if you own stapler. As per him, even senior executives use office stapler and other stationery of very small value at home. This keeps them below the richness , and the person who owns that stapler (company promoter) is the real rich.
So if we want to become rich, we need to develop habit of owning small things even and behave like rich person. I wish we take notice of this habit.
cpjain

Friends

In the present recessionary time, one of the most talking topic is how much one should save out of his total income? I have asked many friends about the level of saving one should maintain in any case to tide over all the turbulant phases. A normal person struggling for his daily bread & butter feels it is impossible to save more than 10% of the income earned whereas a person just reached to a millionaire level suggests that one should save minimum 60% of the total income. It is without doubt that the savings are the only tools to help you overcome the challenging times but do we really give good attention to savings. Often we turn our focus to income and believe it would continue for long period and hence dont save much. Rather we discount our future cash flows also by committing more EMIs and bind ourselves. In my view the level of saving depends on the income and its nature but it should be minimum 25% at any level. This can be further increased upto any level depending on the income.

Related to this is another topic most talking about in the present time is "Frugality". This also a very sensitive issue which one gets aquainted only after spending. I believe we should not tempt to costly brands, pomp & show and expenses which are really not required or sheer wastage. It does not mean that we should try to become millionaire by saving . Please be aware that no one in this world has become millionaire by saving but yes to stay millionaire saving is required. Infact we should spend freely where ever needed.

We therefore should be frugal and good saver.

cpjain