Sunday, August 21, 2011
Followers
It is good to pursue lofty goals, change begins and ends with the self ... Great souls never attempted to change, they were great followers or people who walked with you ... they never preached ... their disciples wrote the holy books ... they lead by example ... that is what can bring lasting change ... no true leader wanted a revolution ... they helped evolution and allowed nurture to shape human nature ...
Saturday, December 19, 2009
Ethics and Justice in Business
In my view justice and ethics must be integrated and I will support my view by reviewing Hosmer et. al (2005) who posit that “a normative stakeholder theory of firms” based on ethics will relate well to “perceptions of justice” (fairness) and will result in improved attitudinal, behavioral and performance of the firm. They propose a set of hypothesis of which the first is of particular relevance as it states that if “managers logically explain the ethical (not the instrumental) basis of their decisions (informational justice), then stakeholders will more likely believe that they have been fairly rewarded (distributive justice) been fairly considered (procedural justice) and fairly treated (interactional justice)”. The next set of four hypothesis suggest the such a scenario as painted in the first hypothesis will lead to stakeholders being more positive, have greater job satisfaction, exhibit greater organizational commitment and repose trust in management. This in turn will lead to enhanced role based and extra role behavior and result in bettering organizational performance. The final hypothesis provides a beautiful conclusion that sustainability of a firm performance will depend on the continued commitment to “balance the moral claims of all corporate stakeholders, concepts of justice, concepts of duty, and concepts of virtue”.
In a world that seem to head deeper into ethical morass, a discussion of justice without reference to ethics in my view will reek of tokenism. While we need to examine the deontological or teleological aspects of ethics that considers the consequence of an action as being “moral” or “amoral” it seems more relevant to focus on virtue ethics which looks inward and expects to address the character of the individual performing the action rather than its consequences. Mahatma Gandhi is reported as having stated that “the end of education is character” and if this is indeed so the question of willful action that is not morally sanctioned will not arise from a person who has acquired that character. In conclusion it is appropriate to return to the Mahatma who summed it up beautifully saying “commerce without morality (ethics) is sin”.
In a world that seem to head deeper into ethical morass, a discussion of justice without reference to ethics in my view will reek of tokenism. While we need to examine the deontological or teleological aspects of ethics that considers the consequence of an action as being “moral” or “amoral” it seems more relevant to focus on virtue ethics which looks inward and expects to address the character of the individual performing the action rather than its consequences. Mahatma Gandhi is reported as having stated that “the end of education is character” and if this is indeed so the question of willful action that is not morally sanctioned will not arise from a person who has acquired that character. In conclusion it is appropriate to return to the Mahatma who summed it up beautifully saying “commerce without morality (ethics) is sin”.
Thursday, November 19, 2009
On Decision Making
Here I go after a year!
It may be argued that leadership at any level includes a fair amount of decision-making and that all the data required making an informed choice may not be available or human beings are subject to “bounded rationality” (Simon, Herbert) due to the limitations in the information they can process and the cost associated with them.
What comes to mind is the paradox that anyone who makes a decision grapples with consciously or subconsciously. Henry Mintzberg summed it beautifully, “Take your pick, in some sense, between "paralysis by analysis" and "extinction by instinct"! Any decision has with in an inherent risk, as the outcome may not be what is intended and in some instances an outcome that was not anticipated or thought to be probable may present itself a “risk”.
Ashwat Damodran quotes Knight (1921) who defined “only quantifiable uncertainty to be risk” so it may be seen as different from uncertainty. Having seen that decision-making is something we do routinely though the nature of decisions can range from simple to complex, the inherent risk will also vary in magnitude and impact. Additionally as decision-making is one thing that cannot be automated though experts in “artificial intelligence” (an oxymoron) may argue otherwise, it is relevant to the study of human behavior.
So what drives decision making … Watch this space…
It may be argued that leadership at any level includes a fair amount of decision-making and that all the data required making an informed choice may not be available or human beings are subject to “bounded rationality” (Simon, Herbert) due to the limitations in the information they can process and the cost associated with them.
What comes to mind is the paradox that anyone who makes a decision grapples with consciously or subconsciously. Henry Mintzberg summed it beautifully, “Take your pick, in some sense, between "paralysis by analysis" and "extinction by instinct"! Any decision has with in an inherent risk, as the outcome may not be what is intended and in some instances an outcome that was not anticipated or thought to be probable may present itself a “risk”.
Ashwat Damodran quotes Knight (1921) who defined “only quantifiable uncertainty to be risk” so it may be seen as different from uncertainty. Having seen that decision-making is something we do routinely though the nature of decisions can range from simple to complex, the inherent risk will also vary in magnitude and impact. Additionally as decision-making is one thing that cannot be automated though experts in “artificial intelligence” (an oxymoron) may argue otherwise, it is relevant to the study of human behavior.
So what drives decision making … Watch this space…
Sunday, December 28, 2008
Law of Greed
Reflections of the global meltdown
A lot will be written on the global meltdown triggered by the sub-prime crisis … As I reflect on that there are some lessons to be learnt …
There is a law that seems to be universal “The law of greed” ...
If your expectations on the return on investment exceed a greed threshold ... then one law that kicks is the law of diminishing returns ...
This axiomatic expression can be validated when one estimates the amount of money the world spends on gambling ... the returns expected far exceeds the greed threshold ... several million punters gamble as if there is no tomorrow losing more and more money in stocks and casino's...
The other point this brings out is every one at some level is greedy as it maps on to our basal instincts ... These are wired and all we see seems to be the need to eat and mate ... There seems to be an insatiable appetite in humankind to maximize the pleasures derived from satisfying these primal instincts despite the fact that even here the law of diminishing returns is at play ...
Managing greed is better than managing wealth …
A lot will be written on the global meltdown triggered by the sub-prime crisis … As I reflect on that there are some lessons to be learnt …
There is a law that seems to be universal “The law of greed” ...
If your expectations on the return on investment exceed a greed threshold ... then one law that kicks is the law of diminishing returns ...
This axiomatic expression can be validated when one estimates the amount of money the world spends on gambling ... the returns expected far exceeds the greed threshold ... several million punters gamble as if there is no tomorrow losing more and more money in stocks and casino's...
The other point this brings out is every one at some level is greedy as it maps on to our basal instincts ... These are wired and all we see seems to be the need to eat and mate ... There seems to be an insatiable appetite in humankind to maximize the pleasures derived from satisfying these primal instincts despite the fact that even here the law of diminishing returns is at play ...
Managing greed is better than managing wealth …
Thursday, October 2, 2008
Downgraded but happy
Today downgraded is a bad word, especially with the meltdown of many venerable institutions in the financial services industry... Every one wants an upgrade be it at the work front by means of a promotion or better pay, better credit status, possession of credit and other cards named after precious metals or socially through the acquisition of a better lifestyle... This must be read as a larger house, car, TV and the like ... Being upgraded is seen as a path to happiness and any downgrading is seen as something as bad as being socially ostracized...
Everyone seems to want bigger, better and faster… I wonder in this mad rush to upgrade do people slow down, reflect and see at what cost other than in a simple economic sense they are paying for this… Time is an irreversible dimension… An upgrade cannot get you back time you have lost in this mad rush…
Martin Seligman, in his book “Authentic happiness” presents a simple formula…
H = S + C + V
Where H is the enduring level of happiness, “S” the set range of happiness that you will experience that is influenced by you, “C” the circumstances of your life, “V”, the factors under your voluntary control.
Seligman’s goes to show how V or what is in our voluntary control is the single most important driver, determining our level of enduring happiness … These include, satisfaction about the past, optimism about the future and happiness in the present …
I will now comeback to downgrades and why they are not bad as they may help increase enduring happiness …. It is very tempting to view happiness as being obtained from doing things that give perhaps instant gratification and pleasure some of which I referred to as upgrades … However this is fleeting at best…
What we need to focus on are slowing down and savoring i.e. being aware of and conscious of what we are doing and the pleasure it brings, being mindful of every activity we undertake… I bet this will lead to prioritization… Developing a sense of gratification as being different from pleasure… True gratification is one that obtains from the pursuit of right action… Only if one indulges in detached reflection and determined redirection can a sense of purpose evolve which if pursued with conviction and dedication leads to endearing happiness …
In conclusion, I must confess what made me write this … It was a downgrade letter from a frequent flier program I have been a member for over a decade… It announced my second successive downgrade in two years from platinum to gold and now silver … I am sure more will follow till I get to their rock bottom… My happiness has never soared so high in recent time as my feet are planted firmly in the ground with my family and friends … I have upgraded my happiness quotient!
Everyone seems to want bigger, better and faster… I wonder in this mad rush to upgrade do people slow down, reflect and see at what cost other than in a simple economic sense they are paying for this… Time is an irreversible dimension… An upgrade cannot get you back time you have lost in this mad rush…
Martin Seligman, in his book “Authentic happiness” presents a simple formula…
H = S + C + V
Where H is the enduring level of happiness, “S” the set range of happiness that you will experience that is influenced by you, “C” the circumstances of your life, “V”, the factors under your voluntary control.
Seligman’s goes to show how V or what is in our voluntary control is the single most important driver, determining our level of enduring happiness … These include, satisfaction about the past, optimism about the future and happiness in the present …
I will now comeback to downgrades and why they are not bad as they may help increase enduring happiness …. It is very tempting to view happiness as being obtained from doing things that give perhaps instant gratification and pleasure some of which I referred to as upgrades … However this is fleeting at best…
What we need to focus on are slowing down and savoring i.e. being aware of and conscious of what we are doing and the pleasure it brings, being mindful of every activity we undertake… I bet this will lead to prioritization… Developing a sense of gratification as being different from pleasure… True gratification is one that obtains from the pursuit of right action… Only if one indulges in detached reflection and determined redirection can a sense of purpose evolve which if pursued with conviction and dedication leads to endearing happiness …
In conclusion, I must confess what made me write this … It was a downgrade letter from a frequent flier program I have been a member for over a decade… It announced my second successive downgrade in two years from platinum to gold and now silver … I am sure more will follow till I get to their rock bottom… My happiness has never soared so high in recent time as my feet are planted firmly in the ground with my family and friends … I have upgraded my happiness quotient!
Sunday, August 24, 2008
Cultural Myopia
It was disappointed to read the response to a question posed to a management guru and his partner who writes a popular syndicated column that I am sure is widely read. The questioner is direct and seeks a response as to why companies do not address cross-cultural issues in merger until it is too late. The answer begins with a bang and the authors say, “Because you cannot number crunch culture”. This opening sentence urged me to read on but I was disappointed as the rest of article went on to describe the “reverse hostage syndrome” or what is described as the acquirers compulsive need to acquire and the complications that arise due to making concessions in the process of being obsessed to close the deal.
The rest of the answer filling almost half the page of a broadsheet has just one more mention of the word culture! I have begun to use the term “Cultural Myopia”, which I am sure, has been used by many in the past and the title derives inspiration from Theodore Levitt’s classic paper “Marketing myopia”. Let me get back to culture before I go off on a tangent like the management guru’s I am referring to! I will start with a work definition of culture from “A Dictionary of Human Resource Management” by Edmund Heery and Mike Noon, Oxford University Press, 2001. “Organizational culture is the set of shared understandings and assumptions the members of an organization have about what the organization is (beliefs), how it ought to be (values), and how organizational members should behave (norms)”. One of the dangerous assumptions most people (IMHO) seem to make is taking a “Unitarian” view of culture assuming that members of an organization or indeed a community must accept the culture without questioning it. This is where I feel lies one of the points of failure and how cultural myopia becomes a barrier in ensuring the harmonious integration of two organizations created by a merger or acquisition.
A majority of managers do not seem to be comfortable dealing with the so-called softer issues like culture and prefer to seek comfort in the operational aspects of business like managing the growth of revenue and profit. There is no doubt that these are of paramount importance but there is a slender chance of two business which for reasons of exploiting “synergy” come together through an acquisition if there is an enormous amount of “allergy” between their people! The allergy syndrome is in part attributable to a lack of understanding of each other’s culture and hence an inability to embrace the differences that will naturally exist in the way people relate to each other in the course of day-to-day business.
It is not possible to conceive of a potpourri approach where multiple cultures melt and the resultant culture is acceptable nor can both cultures exist as is. Therefore, what are the alternatives available? It is not my intent to be prescriptive and suggest some silver bullets as that will be futile. I propose instead some simple measures that companies can put in place to embrace multiple cultures and thrive without the need for a “Unitarian” approach to culture which include:
1) Senior management spending adequate time to understand both the national culture and organizational culture of each other’s organizations
2) Refraining from making any organizational changes other that what is an absolute must till people have made efforts to soak in each others cultures
3) Constitute an integration team that has “culture” as one of the agenda items and not limit the same to functions like IT, Finance, Procurement etc.
4) Mandate right from the word go that a couple of senior management folk will physically move over to the location of the acquired/acquirer
5) Supplement the above at operational levels as well by identifying cross functional/cultural teams that will demonstrate the ability to work shoulder to shoulder
6) Stepping up on communications between the companies and encouraging an open sharing of information between them therefore curbing the development of any SILO mindset
7) The CEO stepping up as the cultural ambassador and reviewing the effectiveness of both sides being able to embrace each others cultures and accept what can be merged and what cannot on a monthly basis
There are no guarantees that steps such as what I describe above will work, all I can say it will increase the probability of ensuring the creation of a “culture of success” that is based on inclusion.
The rest of the answer filling almost half the page of a broadsheet has just one more mention of the word culture! I have begun to use the term “Cultural Myopia”, which I am sure, has been used by many in the past and the title derives inspiration from Theodore Levitt’s classic paper “Marketing myopia”. Let me get back to culture before I go off on a tangent like the management guru’s I am referring to! I will start with a work definition of culture from “A Dictionary of Human Resource Management” by Edmund Heery and Mike Noon, Oxford University Press, 2001. “Organizational culture is the set of shared understandings and assumptions the members of an organization have about what the organization is (beliefs), how it ought to be (values), and how organizational members should behave (norms)”. One of the dangerous assumptions most people (IMHO) seem to make is taking a “Unitarian” view of culture assuming that members of an organization or indeed a community must accept the culture without questioning it. This is where I feel lies one of the points of failure and how cultural myopia becomes a barrier in ensuring the harmonious integration of two organizations created by a merger or acquisition.
A majority of managers do not seem to be comfortable dealing with the so-called softer issues like culture and prefer to seek comfort in the operational aspects of business like managing the growth of revenue and profit. There is no doubt that these are of paramount importance but there is a slender chance of two business which for reasons of exploiting “synergy” come together through an acquisition if there is an enormous amount of “allergy” between their people! The allergy syndrome is in part attributable to a lack of understanding of each other’s culture and hence an inability to embrace the differences that will naturally exist in the way people relate to each other in the course of day-to-day business.
It is not possible to conceive of a potpourri approach where multiple cultures melt and the resultant culture is acceptable nor can both cultures exist as is. Therefore, what are the alternatives available? It is not my intent to be prescriptive and suggest some silver bullets as that will be futile. I propose instead some simple measures that companies can put in place to embrace multiple cultures and thrive without the need for a “Unitarian” approach to culture which include:
1) Senior management spending adequate time to understand both the national culture and organizational culture of each other’s organizations
2) Refraining from making any organizational changes other that what is an absolute must till people have made efforts to soak in each others cultures
3) Constitute an integration team that has “culture” as one of the agenda items and not limit the same to functions like IT, Finance, Procurement etc.
4) Mandate right from the word go that a couple of senior management folk will physically move over to the location of the acquired/acquirer
5) Supplement the above at operational levels as well by identifying cross functional/cultural teams that will demonstrate the ability to work shoulder to shoulder
6) Stepping up on communications between the companies and encouraging an open sharing of information between them therefore curbing the development of any SILO mindset
7) The CEO stepping up as the cultural ambassador and reviewing the effectiveness of both sides being able to embrace each others cultures and accept what can be merged and what cannot on a monthly basis
There are no guarantees that steps such as what I describe above will work, all I can say it will increase the probability of ensuring the creation of a “culture of success” that is based on inclusion.
Thursday, August 21, 2008
Where have the “Three R’s” gone
Back at school in the analog days, teachers emphasized Reading, wRiting and aRithmetic collectively known as the “Three R’s”. I must confess that I could never take to cursive writing. My handwriting was awful and perhaps some historian could mistake it for a new version of some form of hieroglyphics! I was poor at spelling (being dyslexic) and not known for my dexterity with numbers for the same reason. However, thanks to my grandparents, I took to reading very early and continue this habit even to this day.
In this digital age, we seem to totally lost the “Three R’s” and they have been replace by Surfing, Typing and Spread sheeting (or spread cheating)! There is no doubt that technology and the internet have made a positive impact but sadly as with many technologies that have ostensibly benefitted humankind there is a negative side too. Reading seems to be the indulgence of a minority. I wonder how people seem to be unable to fathom the immense joy derived from reading as fascinating biography, a historiographer’s account of our past, a thriller or a work that dwells into inquiring about the very purpose of our existence. A good book can fire our imagination and transport us into the soul of the characters it features and we can learn from the triumphs and tragedies and benefit from the nuggets of wisdom packed in by the author. Reading also aids in sharpening our creativity, which seems to be stifled today because of the abuse of “surf and search” followed by “cut and paste”.
Folks come on ! Books are very affordable today or there are libraries both analog and digital, go on pick up a book today and discover a friend for life … Happy reading! As Groucho Marx once said, "Outside of a dog, a book is a man's best friend. Inside of a dog, it is too dark to read! I must thank Abhinav for suggesting this appropriate quote.
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