Wednesday, April 16, 2008

Widening the perception

I remembered an incident, which happened in my life many years ago, during my college days in London.

It was a lazy Sunday morning and I had taken my dirty linen for wash to the coin operated washing booths, located nearby. Having stowed my laundry, I walked out and sat on the bench of a nearby garden.

As I was sitting there, enjoying the gentle rays of sunlight, a drunken British beggar came near me, and started talking to me in abusive language. In London, as you walk down the streets you could see some beggars, who come and ask you, “hello, can you spare a few pence, please”. This person was one such kind, but because he was drunk he was behaving a bit differently. He seemed to be disturbed, which in turn disturbed me. It was a very uncomfortable situation for me, sitting there and listening to all his blubbering. I showed I was not interested in hearing what he says, by turning away my face ( just like what the British do).  He said, “You, …….. (abusive words) guys, have come and robbed away all the jobs and we British or on the streets”.  I understood he was jobless and he was finding a vent to his feelings, by abusing me.. I was just seeing, how fast I could get away from this situation, just when a British lady who passed by, saw this happening and came to my rescue. She came and told the drunken guy to move out of the place or she will call the cops, in a commanding tone. She also told the drunken guy something, which I still fondly remember. She said, “He is our guest and it is not good manners to treat him like this”.

Both were British, but both had a different attitude towards a Indian. One person treated me like a “robber”, while the other person treated me like a “guest”.

Often in life the fact remains the same, but the way we perceive the fact makes all the difference. There are people who choose to live with a positive attitude, while there is a majority choosing the negative attitude.

While I lived in London, some of my Asian friends, used to say, these whites have a scorn towards the Asians & Blacks.  I used to revert back saying that, why should we think that way.  I believe that, no can make us feel inferior without our permission. It is only by we letting go our self esteem, we get into such a complex.

If alone we can keep our self esteem high, nothing in this world can affect us. If some one looks down at you, there is no reason to shun away from them. You can look straight into their eye and re-affirm that you are an equal. This is what Gandhiji, too preached. We do not have to allow external influence to have an effect on the way we look at life. In fact, by looking straight into their eye, you make a bold statement that you are honest and open about the relationship. This will help the other person to come in terms with you.

It is the same British people who treated the Indians, like dirt during our pre-independence time, who have conferred, the Man of the Millennium title to Mahathma Gandhiji.

We human beings, are evolving not only in our life style, but also in our consciousness. The more our consciousness grows, the more peaceful our lives would be. It is time, we widen our perspective and be willing to change our perception. The world is changing. Are you changing with the world?
 Happy Reading,

D. Senthil Kannan
Article dated April 2008

Friday, March 14, 2008

GR=IP2 to CHINA



A 44 member team from India, headed by Jci. Sen. Ramesh Batavia, went on a 10 day business exploration tour to China, from 25th January to 4th February 2008. The group consisting of prominently businessmen from diverse fields, undertook this tour to have a first hand information of the business prospects and culture in China.
The Thai airways flight from Hyderabad, touched base at Swarnaboomi airport, Thailand and after transit arrived at Hongkong. From Hongkong, we were transferred by coach to Shenzen. Shenzen, is primarily a electronic city with options to buy a whole gamut of hi-tech electronic items at cheap prices. Barring the brand imitations part, there was a huge selection to choose from ranging from LCD panels, LED Lights, Laptop computers, Mobile phones, Memory Sticks, Camera and other devices. One evening, we visited the famous “Window of the World” theme park, which had miniature structures of important world architecture and natural places. The highlight of the , Window of the world is the evening stage performance, where over 1000 artistes perform a dance drama. A must see attraction, for those traveling to Shenzen.
We then proceeded to Guangzho. Guangzho is the third largest city of China and has a wide range of products ranging from electronics, clothing, hardware, automobiles and furniture. 100kms away from Guangzho is a furniture city called Shunde, where a whole range of furnitures are available at cheap prices. For those working on or considering a big budget building project, this would be an ideal place to see before you finalise on the interiors.
After spending 2 days in Guangzho, we proceeded to Shanghai. Shangai welcomed with a snow fall. We proceeded by Van to Yiw, which is a gifts market place of China. Unfortunately, owing to heavy snowfall and Chinese new year celebrations, the market was closed and we could visit the market only for a day. It is the destination, for those who are looking into the gifts business.
From Yiwu we arrived Shanghai and spend a day there. In the evening, we visited the famous “acrobats of china” show, which was a splendrous show. We visited the famous Jade Buddha temple, visited the pearl and silk factory outlet and also took a ride on Maglev train. Maglev runs on magnetic tracks at the speed of 430kms/ hr. The 32 kms distance from airport to city, is covered in 7 minutes. It was  a thrilling ride.

From Shangai we proceeded to Hongkong. We visited the Hongkong Disney land, the Victoria peak, Aberdeen fishermen village and the gem factory. We had a wonderful time shopping at the night market, the day before we started back.
While a major part of the group extended 2 days of tour at Bangkok, I returned back to Bangalore with happy reminiscences of the tour.
Mr.Vikranth, beautifully captured the essence of the tour, through his SMS, which reads: “Nihao/ Se Sa Jing!!/ Se Sae/ Remember the times in de ice/ de train ride from Yiwu to Shanghai/ Disneyland/ Veronica/ Charlie/ Ramada Inn/ Maglev Ride/ What fun/ Great team/ de excess luggage/ great wasn’t it.”
Thanks team members for making it happen. The interesting part, was that 14 out of 44 participants, were the participants of the CEO Summit and Winning Edge programme organized by PALMS in the fag end of  2007.  Dear friends, thanks for your continued patronage to PALMS and our initiatives.
Happy Reading,

D. Senthil Kannan
Article Dated Mar 2008


Tuesday, February 19, 2008

Can taxation be simplified?

The Union Budget that is presented at the parliament, in the month of February, every year draws a lot of anxiety.. There are pre-budget meetings conducted by various trade bodies like CII, FICCI, which consolidates the recommendations from trade and industry and presents it to the finance minister, before the budget is made. Well , as most of us have become so acclimatized to think how better or how worse the impact of this country budget could be, we do not think radically different

I personally have a recommendation to make. It may sound insane, but this is just what you call a “out of the box” thinking. I would like the country to stop collecting all existing taxes, such as income tax, sales tax, property tax, luxury tax, service tax, excise duty, customs duty and the whole gamut of it. Instead we will have just 3 taxes

  1. Wealth tax of 1% on assets, which comprises of land, building, gold, business investments and cash.
  2. Citizenship tax at Rs.500/- per year
  3. Forex spending tax of 20%

So how do I think these 3 taxes alone can support the Indian economy. If you take a look at the last year Union budget, you will find that the net revenue of this country from all taxes put together, was 200 billion of which only Rs.3.15 billion came from Wealth tax. While most of you are aware that anyone holding assets above Rs.15lakhs is liable to pay wealth tax, how many people pay wealth tax? Most of the wealth is undervalued. The wealth tax is not a serious tax consideration, by the government. Why? Is it because so much of undisclosed wealth is held by the politicians? Now let us say you collect 1% wealth tax from every person, without any minimum ceiling, the country will have more revenue generated than what it generates now. Imagine the amount of wealth available in this country hoarded with few individuals.

My argument is based on the simple logic, that earning should not be penalized but hoarding should be penalized. While the concept of savings is good, creation of unfair amount of wealth will help continue the trend of the rich getting richer and poor getting poorer. You can also call it the first mover advantage.

The second tax will be citizenship tax, which is the basic tax every citizen has to pay. A billion citizens paying Rs.500/- each will be 500 billion rupees. This tax amount should entitle everyone to receive a Citizenship card, similar to a social security card issued to the US citizens (a compulsory document for every Indian, which also serves as the voters card or identity card). This amount should be used for developing and maintaining the needed infrastructure, which provides for free schooling and free health care for all. In other words by collecting this Rs.500/- from every citizen, the country promises to take care of the basic necessities of every citizen.

The third tax will be on “forex spending”, which will substitute all taxes such as import tax, custom duty etc.  It is just a simple method to prevent people from,  excessively spending their untaxed income on foreign goods or foreign travel which will be detrimental to the economy.

This idea may catch the imagination of some or have the criticism of many. However, it is a idea born out of my intuition and intelligence and I felt it is worth sharing.

Without straight away rejecting this idea, if someone can refine this idea taking into consideration many other parameters, it will be a great new start. It will make life very simple for the common man in this country.

No where in the world, this type of tax structure exists. So what? Would not we Indians like to call ourselves as “trendsetters”.

Happy Reading,
D. Senthil Kannan
 Article dated Feb'08

Wednesday, January 23, 2008

Guanxi - An Important Chinese Business Element

 What is Guanxi?  Guanxi, like many other foreign words, this word too does not find any single word parallel in English, however the closest translation is “relationships" or “network of relationships”.
Guanxi is a network of relationships among various parties that cooperate together and support one another. The Chinese mentality is very much that of "You scratch my back, I’ll scratch yours." In essence, this boils down to exchanging favors, which are expected to be done regularly and voluntarily. Therefore, it is an important concept to understand if one is to function effectively in Chinese society. Regardless of business experiences in ones home country, in China it is the right "Guanxi" that makes all the difference in ensuring that business will be successful. By getting the right "Guanxi", the organization minimizes the risks, frustrations, and disappointments when doing business in China. And moreover, the inevitable risks, barriers, and set-ups you’ll encounter in China will be minimized when you have the right “Guanxi” network working for you.

Although developing and nurturing the "Guanxi" in China is very demanding on time and resources, the time and money necessary to establish a strong network is well worth the investment. It is very common for individuals of an organization to visit the residence of their acquaintances from other organizations, bringing gifts (such as wine, cigarettes, etc.). They can indirectly link you to new acquaintances and information resources, thus helping you to develop other right "Guanxi" you need.

Keep in mind that "Guanxi" can take on many forms. It can take form of giving money to people who have helped you in getting a business order. While we would deem it as a bribe or kickback, it is completely legal in their culture. So, there is no need to feel uncomfortable about it. Trustworthiness of both the company and individual is an important component. Following through on promises is a good indication of this. Treating someone with courtesy while others treat him or her unfairly is another aspect. Frequent contact fosters friendship as well. Chinese feel obligated to do business with their friends first.

Though the word Guanxi sounds foreign, I presume that the concept is not foreign at all. As it is true to China, this basically is true to any country as a whole. This is about people and how people expect to be treated.  Of all the human needs that exist today, it is this need for appreciation and recognition that is in great demand. In a fast evolving world, where networking is the mantra, let us learn and practice the art of Guanxi.
·  Wear a big SMILE on your face
·  Give gifts, when possible.
· Remember people’s name and call them by their name often.
·  Shower words of praise and show genuine appreciation
·  Keep up promises you make
·  Be willing and volunteer to help others in time of need.
·  Develop a sense of fair play, in all your dealings.
By consciously practicing these skills, you will soon realize that the network of your friends and business contacts are not just growing, but zooming beyond proportions. The power of networking, will make you feel stronger and stronger, day by day.

Happy Reading,
D. Senthil Kannan
Article dated Jan'08

Saturday, December 15, 2007

Subjective reality



If I ask you a simple question, “From which direction the sun rises and sets”, you would think I am kidding. Even a small kid would answer that the sun rises in the east and sets in the west.

Now if I were to challenge your answer and give you a different answer, that the sunrises in the north and sets in the north in some part of the year and it rises in the south and sets in the south in the other part of the year, and sometimes it does not rise or set at all, you would probably think that I have lost my brains. Right?.  But this is the truth in an island called Tromso, located in Northern Norway. This is not a myth but a proven fact.

What we consider a fact is not necessarily a fact in every part of the world. It may be false.

We know the sun doesn’t move but our perception of its movements have become our reality and we live our lives accordingly.  Seeing the midnight sun and its impact on the local people really will turn one’s assumptions upside down. You realise that at the physical or metaphysical level, there is no “One Reality”.  For nearly six-billion people, the reality is that the sun rises in the east and sets in the west, but for a half-million people the sun rises and sets in the north or south. The minority reality may be experienced by only a few people, but it’s as real and valid as the majority  experience, however contrary, unreal or absurd  it may seem at first.

And that’s a message the majority community of any nation would do well to learn, understand and accept.  The minority experience is a reality.  Seemingly contrary multiple realities can and must coexist harmoniously in a country as they do in nature.

The development of human intelligence should not always be objective in nature, it has to be subjective, as well. This above illustration is a classic example of subjective reality. We often fail to see the larger picture. This holds true for different religions too, different communities, different economic classes, etc. 

Therefore every time there is a difference of thought or opinions, before blindly arguing to justifying our point, let us try to listen with empathy what the other person is trying to say and then decide. Let us learn to accept the fact that,  our life’s reality is limited to our perception and it is not the wholesome truth.

Galileo was killed for telling the world, that the earth was round like a ball, when the whole world was living by the assumption that the world was flat. Killing the person did not kill the truth. After a few years it was proved that the earth was round.

Happy Reading,
D. Senthil Kannan

Article Dated Dec 2007
















                                              

Wednesday, November 14, 2007

Automation is the Future

“One machine can perform the work of a hundred human hands, but no machine can perform the work of one human brain”

In a country like India, where the population is very high there is a huge amount of uneducated man power. While the educated manpower get to reach the top positions, these uneducated manpower continue to remain as human machines. Infact, many of the  MNC are interested in capitalizing the potential of the uneducated manpower, available in these third world countries.

When I visited Finland, on the Rotary Group Study Exchange programme, I had the opportunity of visiting a number of industries. What was very striking to me the was the level of automation these companies have employed in the work place. When I looked at the production capacity of these units in relation to the manpower involved, I was thrilled. Big industries,  have just 20 to 30 employees. The simple reason is labour is not available. For instance, in a paper making factory, I saw robots at work. These manlike machines were carrying reels of paper from one point to another point and stacking it in allotted spaces. As simple as, the worker in the Indian factory who carries loads of material, from one point to another point.

For a moment I thought, what would be the fate of a country like India, if robots became so common that there will not be a need for uneducated man power.

What I then realized was that, as of today the economies of cost are not likely be in favour of these industries, but in the near future this may be the in thing. Let me explain. Assume, that the cost of a robot is 1 crore rupees. Now to make a investment of 1 crore in a robot, means that on a conservative basis the interest cost would be approx 12%, which means the cost of employing a robot will be Rs.12 lakhs per year. The uneducated manpower in India is roughly earning about Rs. 150/- per day which means it is just approx Rs.50,000/- per year. Where is Rs.50,000/- as compared to 12 lakhs. So, Robots are not a workable proposition.

Now assume that these robots are made available to industries by mass production at Rs. 5 lakhs per robot. Now the interest cost is Rs. 60,000/- per year. This would mean that the robot would become a more dependable work force for industries. They won’t get tired, they won’t form groups, they won’t fight for a increase in pay, they won’t talk and waste time, they will give you the maximum production you desire, there would be precision and therefore no quality problems, and endless benefits.

Today we talk about labour shortage everywhere. All of  a sudden we do not get labourers to perform the menial work like we got before. We see every industrialist brooding about this issue. In spite of the temptations, such as free food, free medical expenses, free education for children, free van pick up and drop, production linked incentive, in addition to the daily wages, there are no people to come and work.

The employers who once felt like kings are now feeling so helpless without this much sought after work force. What we need to understand is we have to invest in automation in a big way. Even a country like China, which has a higher population than India, seems to have realized the fact, much earlier. Their factories today have enormous production capacity, not owing to its labour force, but owing to the high level of automation.

Let us wake up to the fact that , in India the transition of the physical workers to knowledge workers is on the rise and the availability of uneducated manpower is in a steady decline and unless we bring in more automation at our workplace, it is going to be difficult.

Start looking at the bigger picture. Automation is the future.

Happy Reading,
D. Senthil Kannan 
Article dated Nov'07

Wednesday, October 24, 2007

Sundays are Fundays

Sunday is a holiday, everywhere in the world, excepting for the Islamic countries, where Friday is a holiday.  This drives home a point that everywhere in the world, people have acknowledged the need for  ONE DAY break , at the end of  6 days of work.

Take a look, at what you do on Sundays. Do you catch up on some pending office work? Are your children busy catching up on their school work?  Is your wife busy, with her daily chores? If yes, then don’t you think you are wasting a  precious Sunday.

Sunday is a day of rest & recreation. Nothing more. A day to reward yourself for the good work you have put in throughout the week. A day to recharge your physical, mental and emotional batteries, to face the challenges of the week ahead.

Remember the proverb, “All work and no play makes jack a dull boy”. While a 24 x7 ATM is a brilliant idea, thinking about a human being as a 24 x 7 mechanism is really ridiculous.  So, next time your boss gives you a weekend assignment, tell him NO, even if the monetary rewards are tempting. The purpose of earning money is to enjoy your life, but what is more important  is,  you need to have time to enjoy the money you earn.

So, now on, when it is Sunday,  get up from your bed and shout out loud,  Eureka, today is a holiday. I am going to enjoy this day to the fullest. Think of creative ideas to make your Sunday’s interesting.  Spend more time in your shower.  Pamper yourself. Pack your bags and take your family on a one day picnic. Have a light heart, with a mood for fun and laughter.  Make it a “no rules day”.  Don’t catch your children wrong, and spoil their day. Don’t talk to them about school, exams, marks so on and so forth. Let your kids enjoy doing whatever they like to do. Allow them to get dirty in the garden. Say NO to  Computers, that has been a week long strain to your eye.  Instead, go watch the  latest kids movie in town, with your family.  Laugh loud  along with the kids, even if  you think the joke was too silly. Play a game of chess or checkers, with them. Allow them to win and make them feel proud. Lose a bet and buy them their favourite chocolate. Go to the beach or park.  Make sand castles and play with your children.  Take them  to a restaurant and let them choose from the menu.  Don’t say no to ice-cream. Just one day let them know that you are there fully, for them. The ideas are endless.  The Sunday can create the desired bonding your family needs. So don’t waste your Sundays working.

Happy Reading,

D. Senthil Kannan
Article dated Oct'07