Nine easy ways to beat stress

Radhika had lost weight. Yet, this young homemaker from Pune was not rejoicing. She was sleeping less at night. She did not feel like meeting family and friends. She always seemed preoccupied.

Ask her what was wrong and she would say, "Aren't you scared? There's swine flu, there's panic at my son's school, my husband's job pressures are ever growing, and oh... the list is endless."

Radhika may not have much reason to worry about swine flu. But she definitely has a larger problem to worry about and that is: stress.

We all know stress, but here are some quick facts:

• Stress contributes to heart disease, high blood pressure, strokes, and other illnesses in many individuals
• Stress also affects the immune system, which protects us from many serious diseases
• Almost 75 per cent of people experience 'some stress' every two weeks (National Health Interview Survey)
• Of these people, half experience moderate to high levels of stress during that two-week period
• Worldwide workplace stress is growing by the day. A report estimated billions affected
• The use of tranquilisers, antidepressants and anxiety-relief medicines has gone up considerably in our country
• Stress plays an important role in alcoholism, obesity, suicide and substance abuse
• Excessive stress can cause many physical and emotional symptoms, including headaches, fatigue, muscle pain, lethargy, overeating, anxiety and depression

So how can you help yourself deal with stress?

We spoke to a few health professionals and they came up with some easy tips on how to deal with stress, irrespective of the cause.

1. Create a balance in your life, says Mumbai-based psychiatrist Dr Dayal Mirchandani. You have to make time for activities that are important to you -- spend time with family, friends.

2. Make time for rest and regeneration, he adds. Listen to music, watch movie, take walks, whatever you like doing. Carry your iPod wherever you go.

3. Don't let small things bother you. If something is on your mind, find out more about it instead of relying on undependable sources. Dr Adhiraj Joglekar, consulting psychiatrist says, "Take for example swine flu. The first thing to acknowledge is that the virus is contagious (spreads) but not virulent (deadly). If it was deadly, then deaths would have been a lot higher than they are." Learn how you can protect yourself instead of panicking.

4. Exercise. "Even if it means walking for 10 minutes everyday or climbing the stairs, do it," says Dr Mirchandani. Exercising releases endorphins that help in keeping you positive and happy.

5. Make time to relax at work. "Take those five minutes to look out of the window when you are at office. It is better than later undergoing a stress workshop for two hours a day," says Dr Mirchandani.

6. Rekindle that hobby -- it could be shopping or painting or whatever you like. Do activities that make you happy and take your mind off the routine.

7. Meditate. Cliched as this sounds, there is no shortcut out of this, says Dr Mirchandani. Take short breaks during your work-day to meditate in a quiet corner of your office. Do some deep breathing exercises to calm your mind.

8. Change your habits, if need be. If something is bothering you, a change in habit can work wonders.

9. Change your mindset. "Ultimately, it is how you look at life. Don't let stress get the better of you," says Dr Mirchandani. "If something bothers you, look at it rationally and see how you can reduce its effect on you or eliminate it. Don't let it reach a stage where you need professional help."

(http://www.rediff.com/getahead/2009/aug/28health-nine-easy-ways-to-beat-stress.htm)

Why the Rs 1 lakh tax-free investment limit is useless

A case study on why the Rs 1 lakh (Rs 100,000) tax-free investment limit for Section 80C of the Income Tax Act is ridiculously low and impractical.

There are a number of approved methods to reduce out tax outflow. The major among them, for salaried employees, is the provision under Section 80C of the Income tax Act.

Before getting into the case study we need to get a better understanding of Section 80C.

Benefits of 80C

Section 80C provides for reduction in taxable income up to Rs 1 lakh if certain investments or expenses are made. There are a good many benefits from this section:

• Taxable income itself reduces. For a person earning Rs 2.5 lakh (Rs 250,000), an investment of Rs 1 lakh will bring him below the taxable income bracket. For women, the income can be as high as Rs 2.8 lakh (Rs 280,000) before they pay tax if they use Section 80C to the full limit.
• Forced Savings Habit. Section 80C will ensure that some amount is saved every year for future use.
• Easy Access to 80C instruments. The investment options that are covered under Section 80C can be accessed and availed very easily.

The Options Under 80C

The items that are included in Section 80C, which are available in the market currently are as follows:

• EPF (Employees Provident Fund) upto 12% of the basic salary
• School Fees for Children (No sub limits. Only school tuition fee is acceptable. Transport, special fees, private tuition, etc, cannot be included)
• Life Insurance Premium (only if the premium is less than 20% of the sum insured; in other words life cover has to be at least five times the premium). This includes ULIPs (Unit Linked Insurance Plans) and traditional plans from all insurance companies. No sub limits.
• Pension Plan Premium without any sub limits. This was earlier under Section 80CCC with a sub limit of Rs 10,000. 80CCC has now been merged into 80C itself.
• Housing loan Principal without sub limit. The interest comes under a section 24 with a limit of Rs 1.5 lakh.
• Equity Linked Savings Scheme (ELSS) Mutual Fund schemes. No sub limits
• 5 years Tax Saving Bank Deposits. No sub limits.
• National Savings Scheme Certificates. No sub limits.
• Public Provident Fund (PPF). The limit is Rs 70,000 per person per year. Investments in children's names will also be included in the limit for the parents.

Limit of Rs 1 lakh

Though we have a lot of options for investments and one expense item (school fees) too, the limit to which the tax benefit can be got is only Rs 1 lakh. The investments can be in any proportion and there is no minimum amount that needs to be shown.

In case the tax payer has invested cumulatively say Rs 1.35 lakh (Rs 135,000) and earns Rs 5 lakh (Rs 500,000) per year. The taxable income will be reduced only to the extent of Rs 1 lakh (Rs 100,000) and will be assessed at Rs 4 lakh (Rs 400,000).

Limit not enough

The limit may be enough for those who have income in the less than Rs 3 lakh (Rs 300,000) category. Once the income is more than Rs 3 lakh per year (Rs 25,000 per month), the benefit of this section is on a reducing scale.

Let up see an example of an actual salary slip of Ramesh* (*Name changed for protecting privacy). He is a sole earning member of the family, working as a finance executive in a BPO company. He is married with 2 children in school.

Salary Slip Analysis of Ramesh related to Section 80C
(all amounts in Rs.)
		Per Month	Per year
Salary		25,000.00	300,000
Basic		10,000.00	120,000
Section 80C investments
EPF		1,200.00	14,400.00
School Fees		2,000.00	24,000.00
Life Insurance		3,000.00	36,000.00
Pension Plan		1,250.00	15,000.00
Housing Loan Principal			29,601.00
Total Section 80C Investments			119,000.00
Note
1.                   Terms plans for self and spouse -- Rs 6,000, Children' plan ULIPs -- Rs 30,000
2.                   EMI on Rs 8,00,000 loan for 15 years at 10% interest -- Rs 8,600 per month started 2 years ago
3.                   Two children. Both in same school.

The section 80C limit as seen above is quickly exhausted. In another scenario, for a person earning Rs 50,000 per month,  the EPF alone may cover as much as Rs 30,000 out of the available Rs 1 lakh.

Need to increase 80C limits

One of the requests from the salaried classes to the finance minister has been to increase the Section 80C limit to Rs 250,000 in the forthcoming Budget. The increased limits can bring in much required investments to build our nation's infrastructure.

This will benefit the country more than the actual tax received as the quantum of investment through such investments will be at least three times more than the tax received (at the 33.3% income tax slab).

To save tax Ramesh (10% income slab) has invested Rs 1 lakh. If he has paid tax till March, it would have been only Rs 15,450 (10% of income between Rs 150,000 and Rs 300,000 plus Educational cess).

In a few days more, we will get to know whether our wishes have been granted.

(http://business.rediff.com/report/2009/jul/03/budget09-why-the-rs-1-lakh-tax-free-investment-limit-is-useless.htm)

Cisco joins the DOW at GM's expense

With GM now in bankruptcy protection, it's getting the boot from the prestigious Dow Jones Industrial Average. In GM's place, the DOW  is set to add Cisco (NASDAQ:CSCO) to the index.

Cisco could be added to the DOW as soon a June 8th (according to the Wall Street Journal). It is no surprise at this point that GM is in bankruptcy protection and similarly no surprise that a bankrupt company (though once one of the world's largest) is getting kicked off the DOW.

The addition of Cisco should also not really be seen as a big surprise. Cisco with 65,000 plus employees and multiple tech divisions spanning consumer, enterprise and governement networking and collaboration gear is a stalwart of the US economy. It is, and has been for some time a good leading indicator for buyer sentiment in technology.

Cisco CEO John Chambers was among the first tech leaders to point out that the current economic slowdown was global and would affect technology vendors like Cisco. The buying patterns that Cisco sees from government, enterprise and consumer customers gives it a broad cross section of the economy and makes it a decent benchmark for buyer sentiment in my view.

Cisco is also a company with some $30 billion or so of cash on hand, and despite the challenging economy, seems to be staying the course of sustainability for its business.

The addition of Cisco to the DOW also marks an interesting milestone for tech. Cisco is the first "pure" technology vendor to be added to the DOW since Micrsofot (NASDAQ:MSFT) and Intel (NASDAQ:INTC) in 1999.

Though Cisco today is already among the most heavily traded stock on the Nasdaq, I would expect that with its inclusion on the DOW it might receive just a bit more interest from an even broader base of analysts and investors.

The addition of Cisco to the DOW, ultimately will not likely make any real difference to Cisco's technology initivatives. It does however give them even more prominence as a key element of one of the world's leading financial indicators.

(http://blog.internetnews.com/skerner/2009/06/cisco-joins-the-dow-at-gms-exp.html)

8 amusing facts about your home loan

A loan agreement is the document that lays out the terms and conditions of the lender. It also informs the lender of the borrower's consent. It is very important to read what you sign for that very reason. Be informed before you agree.

The agreement could be the last thing you want to read. The miniscule font size alone is a turn off. Add to that, too many asterisks, and more than ample number of sections. So, even if reading the document seems to be a mind-numbing task, you have to get it done. This document is legal and once you sign it, you are bound by its terms and conditions.

But you must read the document very carefully. Because not only will it inform you, it has immense potential for amusement. Are you ready for some fun then?

1. If you have a dispute with the bank during the loan tenure, as a borrower, you cannot issue a stop-payment instruction with respect to post-dated cheques for as long as the 'facility' (loan) or any part of the dues is outstanding. In case such an instruction is issued, the bank can initiate criminal proceedings against you under the Negotiable Instruments Act (1881).

2. If you, the loan borrower, do not understand English, a declaration in vernacular language needs to be executed and signed by you in the desired vernacular language. There is a special instruction in the agreement regarding the same.

3. There is a special 'Memorandum Regarding Signing' for those who understand a vernacular language, for an illiterate, and for a blind person.

4. According to the agreement, you cannot sell, exchange, partition, mortgage, charge, encumber, lease, or dispose the property till you have got 'discharge' from the bank in writing.

5. You cannot hold the bank responsible for any delay in construction, giving possession of, completion of property by developer, promoter or society even if the bank has approved or sanctioned any facilities to such a person or entity.

6. If you are a resident Indian, you cannot leave India for employment or business or stay long-term outside India without fully repaying the loan. You cannot stay out of India for any purpose for more than 60 days. There should not have been a change in the citizenship nor should you have made any earnings or income during this period from abroad.

7. If you have taken a 'home equity' or a 'top-up loan' you cannot let out your property for use/ occupation by another person without prior written permission from the bank.

8. Oh yes, and this one is a personal favourite, see if it's yours too. It is not clear whether banks are bound by law to notify you of changes in their policy. But, the agreement binds you to remain acquainted with a bank's rules/ terms and conditions affecting or relating to the loan taken.

(http://getahead.rediff.com/report/2009/may/29/eight-amusing-facts-about-your-home-loan.htm)

When You Buy A Good Company, Eat Your Ego

It was the largest acquisition by an Indian company in the technology space. But that was not all that set apart HCL Technologies’ takeover of Axon in September. HCL Tech had countered Infosys Technologies’ bid of 600 pence a share for the UK-based SAP implementation firm, with an aggressive offer of 650 pence a share. Just when it seemed like the two bidders might engage each other in an endless game of bids and counterbids, Infosys withdrew and Axon became the fourth company to fall into HCL Tech’s M&A kitty last year. The other three, though smaller, were US-based Control Point Solutions and CapitalStream and British Liberata Financial Services. BW’s Binu Kwatra spoke to HCL Technologies’ CEO Vineet Nayar on how he makes mergers and acquisitions work in times of a global economic crisis.

What should be avoided after acquisitions such as Axon, for instance?
Impose on them the HCL brand. Call them an HCL SAP division. Give them an HCL e-mail id. Put HCL hoardings in their offices. Number two, they are used to using tools and technology and conducting business in a certain way, which works for them because they are five times more successful than I am. So, eat your ego and kill your own ways of doing business and adopt their ways. The third is what I call trust. You acquire a company because they are good; then you don’t trust them and you put somebody from your side on top of them. For God’s sake, why are you doing that? So, leave them alone. The last — the value is between that company and its customer. The value is not in the interface between HCL and that company. So, focus on how you can enable that, so that the company can create a higher value for its customer.

How crucial is this ‘enabling’?
The critical question that your reader should ask himself is — what were the fundamentals under which you wanted to do the mergers and acquisitions? New capability acquisitions, access to new geographies and making your non-performing business performing? In the slowdown, has any of the three factors changed? If they have not, then M&A is not a three-letter word. It should be pursued vigorously. If anything, it has become easier.

So, the Axon management stays and your SAP head reports to it?
Yes… and all the 2,500 people.

Global business environment has changed considerably since the Axon takeover. To what extent have you lowered revenue expectations from your acquisitions?
I think the global economic slowdown has given us the ability to absorb these acquisitions. Because we are growing at a lower growth rate, there is a better management banquet, there is more time to absorb, there is more time to do re-orientation. So, the pause button that has been pushed in the global market is the most wonderful thing that could happen to you from the acquisition point of view.

How long will it take for these acquisitions to contribute to HCL Tech’s growth?
Starting this quarter, I think. Why should they not contribute to growth? Now would you see the growth in the business that we acquired? Maybe not.

In terms of profit as well…
Yeah, why not? I don’t see any reason why you would not see growth. But the way the street looks at growth is wrong. If you have acquired X, (they ask) and has X become 2X. (This is) Wrong. It is like camphor the catalyst — you acquired X because you wanted to convert the milk into cheese, because cheese is more expensive. Now you are asking me what has happened to that catalyst. It does not matter. But has HCL transformed, has HCL’s image transformed and hence has the business grown? Yes.

Are you facing greater challenges integrating these companies into HCL Tech because of the recession?
Most companies, when they try and do that, they fail, predominantly because they do it at a pace that is not required or they are so obsessed with their own so-called goodness that they ignore the culture and the structure and everything that is good about the acquired company. So, I would say that integration is the least important thing in any acquisition, predominantly because if you are acquiring a successful company, then you should surround them and enable them. So, I change the word integrate to enable. So what we did was, from day one, we reverse-merged our teams into Axon. So actually Axon, which is a high-performance team, bought HCL’s SAP practice, which became HCL Axon.

So, there were no re-designations, no re-orientation of salaries and no restructuring?
No.

Will they never be merged?
Will they be merged if we don’t change our business? Never. Will they be merged if we change business? Yes, because we have acquired Axon, not for its SAP practice alone. We have acquired Axon for two capabilities — consulting capabilities and SAP capabilities. Its SAP capabilities need no merger. As far as consulting is concerned, the bigger question is, where it fits into HCL’s scheme of things. Once we answer that question, then obviously Axon will have to play a deep role in that.

How have you handled the technological, marketing and distribution challenges after the acquisitions?
From a relative point of view — between growing organically and acquisition — acquisition. the way we have constructed it is the least challenging option. However, if you grow using only HCL people, then there are significant challenges regarding cultural integration, ways of working, alignment of objectives… all those issues. But I think options, and I think of the least challenging option.

Technologically, did the two organisations come together? Were they using different sets of technologies?
All business-facing solutions and technologies of HCL have been scrapped and Axon’s have been used. So, the front is only Axon. The back office system is one standard system, which is HCL’s.

(Businessworld Issue Dated 27 April-04 May 2009 - http://www.businessworld.in/index.php/Corporate/When-you-buy-a-good-company.html)

How to handle a bad boss

It happened again. Maybe the boss broke his or her word, bad-mouthed you, or torpedoed your promotion. You're not surprised. Your boss already ignores your ideas, talks down to you, and expects you to be a mind-reader. And that doesn't even count the eavesdropping. What's worse, your boss won't talk about it with you, telling you to "move on." as if nothing ever happened. OK, you've been saddled with a bad boss.

Having to answer to a boss is a fact of working life. But what are your options when you're undermined by the person whose goodwill you need? Sure, you can lash out or call human resources. Unfortunately, companies are like Vegas casinos: The house always wins. Still, you have options. When the anger starts to boil, consider the following:

Don't act immediately

Initially, you'll want to fight back. You may fantasise about writing a blistering critique of your rotten boss. . . and e-mailing it to the CEO. And those thoughts aren't necessarily harmful. But thoughts don't have to lead to action. Sure, your boss may be small-minded, two-faced, spineless, and technically inept. But would a dramatic gesture be worth the lost salary? Is it worth a hole in your resume, the one you'll be explaining for years to come? This isn't the economy to choose pride over practicality.

Play the game

You were cheated or unfairly smeared. Welcome to the real world. But don't let it turn you sour or sloppy. And don't let your boss get to you, either. Nod and smile when he delivers another self-serving sermon. Maintain a can-do attitude, like you have your dream job. Respect and defer, even when trust is lost. You'll work with plenty of jerks over your career. You may as well start practicing now.

Prepare

Start collecting references and recommendation letters from clients, peers, industry pros, and local leaders. Keep a file of positive citations to your work too. Even more, focus on activities that position you to lead and produce measurable results. No one can take those experiences away from you. And they'll enhance your credibility when the next opportunity arises.

Forge alliances

Identify the job you eventually want. Get to know the players in that department. Grab lunch with them. Help them out during downtime to prove yourself. Build a relationship with a mentor or your boss's own boss, too. They can provide direction, intelligence, and even a reference. Beyond that, get involved in corporate initiatives, such as community outreach or strategic planning. Your boss has the power and network to blackball you. Stay visible and broaden your circle to counter that.

Don't jump to conclusions

Sometimes, there is more going on than meets the eye. The higher-ups may veto your boss's efforts. Conditions change or extenuating circumstances emerge. Your boss probably has a full plate - and you may not be his or her top priority. And your boss may simply be unaware of his or her behavior and its impact on you.

Bottom line: Management is often grueling and thankless. We all need someone to blame, but give your boss a little empathy. Don't mistake the person for the perception. They're usually far more complex than your caricature.

Keep your boss in the loop

Everyone likes to feel like an expert and give back. Your boss is no different. Maybe you need to reel your boss closer, rather than pushing him or her away. Ask what traits or skills you need to develop to reach the next level. Ask for specifics; look at establishing benchmarks to measure your growth. What's more, become a true partner with your boss.

You know your boss's flaws: Train yourself to ask the right questions, clarify, and work through the details. This is perfect training for what's really important in business: anticipation, flexibility, relationship-building, collaboration, and execution (not to mention making your boss look good).

Focus on the big picture

Your boss will betray your trust, then tell you to stay positive. Your boss will chastise you for your behavior, then act the same way. Sure, you can quit, but have you gained anything besides an ulcer? Instead, make the most of your time. Focus on gaining the right experience, building your interpersonal skills, and policing your attitude. They are your ticket out.

Absorb those daily humiliations, so you never become like your boss. Most important, don't write off the message because of the messenger. Your boss didn't reach this level by accident. Be open to criticisms and suggestions. You'll likely miss some valuable nuggets if you completely tune out your boss.

Wait

If your boss really is a jerk, chances are the clock is ticking on him or her. Charm, connections, and reputation only give bosses so much rope. They'll inevitably drop their guard and slip up with someone higher up - and it won't be pretty.

In the meantime, view your job as a means to an end and start laying the groundwork to get there. You have bigger things ahead of you.

(http://business.rediff.com/report/2009/apr/09/how-to-handle-a-bad-boss-8-tips.htm)

How to adjust to the downturn

During the Great Depression, one in four Americans did not have a job. Today, that number is more like one in 10. So things are really not as bad as they can get, claim some experts. What they forget is that the recession this time around is global and almost every working person is feeling the impact. The International Labor Organisation estimates that if the global recession continues, more than five crore people across the world would have lost their jobs by the end of 2009.

What such studies don't reveal is the number of people who have had to take salary cuts, and an even larger number who work in organisations that have announced a bonus freeze. And these companies are spread across the world. It's all very well to say that India is not in a recession; the fact is that thanks to outsourcing and a hugely globalised economy, job insecurity is rife in the country. We all know people who have been asked to leave, many of us know that we won't get a bonus this year, and those who do get it, realise it will be a fraction of what they would have got in happier times.

There's nothing we can do except make the best of what we have. Surveys show that job and career Websites are reporting a perceptible rise in traffic, not just to find jobs but to look for tips on recession-proof jobs (education, healthcare, security, etc), or even part-time work. There are tips galore on how you should sell results, not skills, how you should prove that you can either make or save money for your company, and how you can negotiate a better structured salary so that you don't miss the bonus payment.

Over the next several pages, we take you through the various ways in which you can cope with job insecurity or even job loss. We look at viable alternatives to a full-time 'office job'-by building your existing skills, by striking out on your own, even by taking up part-time or freelance assignments.

A professional in a sunrise sector, who won't get any variable pay this year, and whose salary of Rs 70,000 a month will be cut by 5% from April 2009.

- EMIs (home and personal loans) constitute 50% of his salary. - 5% of his annual income, or Rs 40,000, will be gobbled up by the Ulip premium that he has to pay in March 2009. - Finances are stretched as he was banking on the variable component and possible salary hike this year. - After the pay cut in April, his monthly budget could go awry, with 60% of his lower income committed to EMIs and insurance premiums. - But all is not lost as he can still manage by rejigging his finances.

For those who still have jobs but are forced to take a pay cut or deferred bonus payments, there are ways of negotiating your existing work and salary to allow you to manage. We even look at how a job loss could have a positive impact on your career. Through all these, there runs a constant thread: how to manage your finances.

Whether you consider moonlighting, part-time work, entrepreneurship or skill-building, it's vital that you keep an eagle eye on your finances because jobs are not the only victim of the recession. Prices are going up even as salaries fall or dry up. Yes, the writing has been on the wall ever since the sub-prime crisis hit the US, but we in India have believed that we would be insulated from its ill-effects.

The RBI bolstered this view, when, in its mid-term policy review in September 2008, it estimated that the GDP would grow by 7.5% this year.

Pune-based Vineet Mahajan was so confident that the US economic crisis would not affect him that he bought a house for Rs 40 lakh in late 2008. Mahajan's monthly income was Rs 70,000 and the home loan EMI worked out to Rs 30,000-or over 40% of his salary. He believed that his bonus payment and performance-linked incentives would more than take care of the loan repayment. In fact, he was so confident that he added a personal loan (to buy furniture), increasing his EMI by Rs 7,000.

Mahajan was in his happy bubble till about a month ago, when his company announced that due to low sales, cancelled orders and a sagging bottom line, there would be no variable income next year. And from April this year, employees also have to face a 5% salary cut. In very non-financial terms, Mahajan is in hot water. Apart from the fact that from April, he will be spending over 50% of his income to repay his loans, he also has to shell out Rs 40,000 as annual premium on a Ulip that he bought last March. If he doesn't pay, the policy will lapse and the premium will be forfeited.

It may be cold comfort, but Mahajan is not as badly off as the people who have lost their jobs. Here's a bit of good news. You can still meet your financial commitments. It calls for changes in your investment and spending patterns, as well as some adjustment in your current lifestyle, but these changes will pay off.

 

Repay loans

The first step towards some financial sanity is to draw up a list of your expenses, which includes all loans, bills and regular payments. Sort out these expenses on the basis of priority, keeping the loans upfront. This is because lenders are quick to react (especially during times like these) when faced with a delayed payment or a cheque that's not honoured by the bank. A good credit record is what will separate you from the bad guys (in the lender's opinion), and if you don't default, a lender may be willing to give you a longer rope when you really need it.

But what if you simply don't have enough money to pay the EMI? Banks do offer several repayment options (see box). "Many borrowers have approached us with such problems. While it is not possible to allow zero payments, we do consider rescheduling their loans if their repayment record has been good," says Manish Jain, vice-president, retail banking, Axis Bank.

It's also a good idea to unlock the value of your property in times of a crunch. If your house is not mortgaged, you can take a loan against it. This is better than a personal loan in many respects: the interest rate is lower and you are charged from the day of withdrawal till the day of repayment.

Be realistic when assessing your loan portfolio and repayment capacity. Is your income loss temporary? Are you confident that you will find a job in three-four months? How big will your next increment be? Answer these questions honestly to find out how you are placed. If your auto loan EMI is beyond your means and you still have five years to repay, you might be better off selling the vehicle. A vehicle is a depreciating asset and if you delay the sale by a year, its price will come down by another 20%. Finally, remember this: "It's usually not a good idea to take one loan to repay another," says Harsh Roongta, CEO of Apnaloan.com. "You are only digging a bigger hole if you take a loan to pay for a car that you can't afford."

Cover your Health

Spend money on health insurance. No, we haven't gone raving mad telling you to shell out one more premium at a time when you should be saving all your resources. The sad fact is that if you have lost your job (or a pink slip is imminent), you're not just foregoing your salary but also the perks. One of these is the group medical policy that most companies offer, and one that ends the minute you cease to be an employee.

Many people might see medical insurance as an unnecessary expense when they are low on funds. But this is precisely the time they should consider taking medical cover for themselves and their family. The logic is simple: if someone is finding it difficult to pay a premium of Rs 4,000-5,000 for medical insurance, how will he manage to pay the hospital bill of Rs 40,000-50,000 in case of an emergency? "Health insurance is a must because an unemployed person may not have the money to pay for treatment if somebody in the family requires hospitalisation," says Yashish Dahiya, CEO of Policy Bazaar.

The good news is that there are plenty of policies available. Rahul Aggarwal, CEO of Optima Insurance Brokers, advises a basic floating cover for the entire family. A Rs 2-lakh cover for a family of four would cost about Rs 3,500 per year. That's a small price to pay for your peace of mind for the rest of the year. 

Life insurance

Next on the list of priorities are premiums for life insurance policies. If it is a Ulip and three premiums have already been paid, you can delay (or even skip) the premium. This is because the value of the units accumulated over three years is normally enough to continue paying the premium for several years.

What if you have a traditional endowment or money-back plan? There's some good news here as life insurance companies offer several premium-paying options. Also, unlike Ulips, insurance companies are willing to restart endowment and money-back policies even after several years of missed payments. “Many people make the mistake of assuming that if they don't pay the premium and the policy lapses, it cannot be revived,” says U.S. Roy, CEO and MD, SBI Life Insurance.

If you are sure that your money crunch is temporary, you can take a loan from the insurance company to pay the premium. LIC charges a flat rate of 9% on such loans, while private insurers charge a little more. You can even switch from an annual option to a monthly payment option. “The monthly option is psychologically less intimidating than the annual option in case of high-premium policies,” says Debasis Sarkar, senior director and chief marketing officer of Max New York Life.

Many people have a bouquet of insurance policies-money-back, endowment, Ulips and term plans. While the premiums for almost all plans can be deferred, the term plan premium has to be paid when it is due. “One should pay the term plan premium first,” says Roy. This is because if the term plan lapses, it cannot be revived and a new policy will come at a higher price.

Lifestyle changes

For over a year, Money Today carried a regular feature on how small savings over time can result in the creation of wealth. That was not an academic exercise. It might be a good idea to take a look at some of those ideas now (visit www.moneytoday. in and search for 'Small Fortune'). For instance, don't send out for your afternoon pick-me-up from a coffee shop. The stuff dished out by your office vending machine may not be as good as a frothy cappuccino from, say, Barista, but it's not going to cost you Rs 50. “While the prices of coffee have come down in the past decade, the prices of cappuccinos at coffee shops have gone up,” says Subramanyam. Saving Rs 50 a day can add up to Rs 1,500 a month. Similarly, instead of eating out four times a month, just go once a fortnight and save about Rs 1,500 a month. Make these two small lifestyle sacrifices and save Rs 36,000 a year. Do the same with stuff like a floor-cleaner, where an unbranded version costs a fraction of the branded one, but does pretty much the same job. To repeat a cliche, little drops of water make a mighty ocean.

Simple Strategies

Insurance policies

Traditional insurance plans offer several options to policyholders if they are facing a liquidity crunch and can't pay the premium.  

Strategy 1 Skip premium for 3-year-old policy

The impact: Life cover will stop but policy can be revived by paying penalty.
Watch out for: Policyholder will not be covered if the premium has not been paid. This defeats the purpose of insurance.

Strategy 2 Take loan on policy to pay premium

The impact: LIC gives loans at 9% per annum. Other insurers also offer this option. Life insurance cover continues.
Watch out for: At best a stop-gap arrangement. Avoid adding to debt burden if income crunch is likely to get extended.

Strategy 3 Convert it to a paid-up policy

The impact: The insurance cover will come down but will not end completely.
Watch out for: Reduction in life cover compromises financial security of family.

Strategy 4 Change the payment option
The impact: If unable to pay a lump sum, switch to a monthly or quarterly payment.
Watch out for: Premium is higher in these options. Also, it adds to paperwo

Budgeting Expenses

Too much month left at the end of your money? Here are a few simple strategies that could help you tide over the financial tsunami.

Strategy 1 Cut down on luxuries

The impact: Cut down on eating out. Avoid coffee breaks at Barista. Don't go for big brands. Join a car pool.
Watch out for: Sudden lifestyle changes can be difficult and emotionally traumatic.

Strategy 2 Shift to a smaller house

The impact: Shifting from a 3-bedroom swanky apartment to a modest 2-bedroom flat can cut the rental cost by almost half.
Watch out for: Location is crucial. If the new area is far flung, the gains from lower rent may be offset by higher cost of travel.

Strategy 3 Unlock value of fixed assets

The impact: Credit against a house or car can help get over a crunch. Such a loan is cheaper and more convenient.
Watch out for: Use this facility carefully. The sudden infusion of liquidity can be dangerous for the undisciplined spender.

Investing & Saving

If there is uncertainty about future income, your first step should be to reduce the risk in your investment portfolio and focus instead on capital protection.

Strategy 1 Exit from stocks completely

The impact: Eliminates risk in the portfolio. If you have lost your job, stick to risk-free deposits to protect capital.
Watch out for: Selling stocks when markets are low may result in losses. Also, you lose out if markets recover.

Strategy 2 Reduce equity exposure to 10%

The impact: If household income has declined, reduce the risk but keep a window of opportunity open. Useful for former double-income families.
Watch out for: Reducing equity exposure can result in opportunity loss.

Strategy 3 Sell shares, buy index funds

The impact: Index funds are less risky than individual stocks or regular mutual funds because they invest in a basket of blue-chip shares.
Watch out for: Index funds may not be able to match the returns from direct investments in equities or diversified equity funds.

LOANS & EMIs
Unable to pay your EMI? If your record is good, your bank may offer you easy repayment options. But sometimes you may be better off disposing of the asset.

STRATEGY 1 Extend tenure of the loan

The impact: The home loan EMI comes down, freeing the cash.
Watch out for: The interest cost of the loan goes up. The total interest paid on a 15-year loan is 60% higher than what is paid on a 10-year loan.

STRATEGY 2 Convert to a step-up loan

The impact: EMI comes down in the initial years, freeing some cash for the borrower. After a few years, the EMI increases progressively.
Watch out for: The interest outgo is higher because your principal does not reduce. Also, the EMIs later in the term are higher than in a normal loan.

STRATEGY 3 Foreclose loan and sell the asset

The impact: Eases liquidity crunch for the borrower. Proceeds from the sale can be used to repay other debts and for living expenses.
Watch out for: Distress selling in a depressed market usually does not fetch a very good price. If you sell a house that had been rented, there would also be a loss of income.

(http://in.finance.yahoo.com/insurance_basics/10/how-to-adjust-to-the-downturn/)

What an IBM-Sun deal could mean for India

The news of global IT giant IBM buying Sun Microsystems has been doing the rounds for years. So, despite the Wall Street Journal reporting that an approximately $6.5 billion buyout is imminent, analysts remain sceptical.

 

However, if the deal were to happen, analysts feel IBM and Sun have a lot of overlaps in technology and in product offerings. Hence, it would be an integration challenge.

 

In the short term, there may be no impact on the 1,200-odd Indian employees of Sun. In the long run, some could get impacted due to platform and technology consolidation. Sun, though, has been cutting staff over the past few quarters.

 

"IBM will be the clear market leader (if the deal fructifies) in the server market in India, dominated by HP. But there will be conflict of platforms for IBM," said an analyst.

 

There's a lot of software overlap in databases -- IBM has DB2 and Sun has MySQL.

 

India is now an important market for Sun Microsystems, both for its products and creating intellectual property (IP). For instance, the number of programmers working on Sun Microsystems' platforms in India is 780,000, retaining the country's position as the leading developer location in the world. This is over half the total developer community in the country.

 

In fact, the Rs 1,700 crore (Rs 17 billion) Sun India, with around 1,200 employees, has consistently witnessed close to 30 per cent q-o-q growth in the country, according to Dataquest India estimates.

 

Servers garnered around Rs 800 crore (Rs 8 billion), storage Rs 300 crore (Rs 3 billion), and software and professional services accounted for the rest in FY08. Sun's presence in services is negligible.

 

An attempt was made to address the anomaly in 2008 with Sun Learning Services, which accounted for Rs 50 crore (Rs 500 million). Its professional services, under Sun Tech Consulting, took off as well.

 

Sun's India Engineering Centre (IEC), the first in Asia, was set up in Bangalore in 1998. The company has also set up its APAC's first Control Centre in Chennai --  the third such centre globally.

 

The India R&D centre has also played an important role in creating IP. Of the total 11,000 patents awarded, over 170 are from the Bangalore R&D centre.

 

However, for engineers at Sun India, this is much more than just an acquisition. "It's about the culture that Sun promotes. Some of the people working at Sun India have never shifted to any other firm," said a source.

 

Java is Sun's best asset, but the platform was never monetised. IBM could help it do so. Sun also has some interesting ideas on cloud computing, IBM's forte. Finally, Sun can allow IBM to consolidate a data centre rival and bring things back to equilibrium, now that Cisco has entered the market.

 

Globally, IBM -- which also has a significant presence in India, with over 70,000 employees -- can acquire server and storage share. With Cisco entering the server market, profit margins could be squeezed, especially if the server essentially becomes a storage and networking box, too. By acquiring Sun, IBM could get more scale. The same argument holds for storage hardware.

 

Sun is a powerhouse in Unix, still a key platform, but isn't exactly making waves. IBM could acquire Sun and establish both Linux and Unix. Sun would enable it to put pressure on HP's Unix-based businesses, too. However, IBM sells AIX Unix servers, while Sun sells Solaris.

 

There are issues to be worked out on hardware. IBM has refrained from commodity servers and Sun plays in that space. Hardware is often the entry point for IBM's software and services. With a stronger hardware business, it can fend off HP in the marketplace.

 

(http://business.rediff.com/report/2009/mar/19/what-ibm-sun-deal-could-mean-for-india.htm)

How IT revolutionised politics

There were a couple of successful electronification initiatives, which, by demonstrating the capability of technology to millions of Indians across the country, were transforming popular opinion in its favour. One was the electronification of India's elections with the introduction of a colourful, pop-art style, easy-to-use voting machine, which became an enormous hit with Indian voters.

 

'It took us twenty-seven years to implement electronic voting from the time we conceived and built the machine,' the Chief Election Commissioner N Gopalaswami tells me. 'When we tried to use the machines in a 1981 Kerala by-election, one of the contenders challenged their validity but lost at the state's high court, so we went ahead.' But in the election, the politician who had fought against the machines won, and the loser challenged the result at the Supreme Court. 'The SC tossed out the results because the law required paper ballots.'

 

Amending the law took six years, and then the machines went on the backburner. In 2001, after a long hiatus, the Election Commission again tried the machines out. In Tamil Nadu, the All India Anna Dravida Munnetru Kazhakam, AIADMK leader J Jayalalithaa made a fuss, alleging that the machines were unreliable. 'This time, the Supreme Court threw her case out,' Gopalaswami says. 'Good for her, because she won that election.' Since then, it has been smooth sailing -- in 2004 all elections across the country had electronic voting, with one million machines deployed across over 700,000 polling booths.

 

India's elections have typically been corrupt and chaotic, with 'ballot-box stuffing' part of the nuts and bolts of getting yourself elected, and voting fraud in some areas have been as high as 40 per cent. The electronic voting machines (EVMs) considerably reduced the problem of ballot stuffing.

 

As Gopalaswami says, 'When one vote is cast, the machine takes twelve seconds to reactivate. So the "productivity" of the fraudsters goes down, since you can't just stuff bunches of paper into a box.' The time delay has also helped the Commission figure out when 'stuffing' has happened with a machine. 'If we spot a series where votes were cast every twelve seconds, we simply cancel that result,' he says.

 

Gopalaswami seems to take these challenges of our elections in his stride, and when he tells me of his technology-aided solutions to stop box-stuffing, I cannot miss the twinkle in his eyes. Recently, the commission began to clean up the system by digitizing other parts of the process -- such as using randomizing software to choose the presiding officers for election booths. 'There are exclusion parameters that the software uses, which eliminate, for example, the guys whose home town is in the district.' In addition, these presiding officers used to be selected a week before the election, which gave candidates enough time to ply him with his weakness of choice -- alcohol or money. The new software, however, chooses the name of the presiding officer on the day of the election. It has, the commissioner tells me cheerfully, really annoyed some candidates.

 

And the sincere ballot-stuffers bring artistry and skill to their efforts. As Gopalaswami points out, 'They can figure out elegant ways around regulation and anti-corruption measures. But IT helps us make it a lot harder for them.'

 

Another major initiative that transformed the popular perception of IT and brought India's masses in direct contact with it was the electronification of the railways. The Indian Railways is a huge part of travel for most Indians; it cris-crosses the length and breadth of the country and transports fourteen million passengers a day. The computerised reservation system could not have been a better introduction to the value of IT systems -- it was highly efficient and allowed the poor to bypass the long queues for tickets and the ineffectual, often exploitative bureaucracy.

 

At the railway ministry, I meet Sudhir Kumar, an IAS officer with a wide, infectious smile, one of the sharpest minds I have known, and a tendency to quote the management gurus Gary Hamel and C K Prahalad to get his point across. He is animated about how much computerising reservation and ticketing has helped the rail traveler. 'We transformed lives for a lot of people with computerised reservation systems,' he says. 'We freed up passengers from long queues, the mercy of touts and tickets being sold in the black. But there is so much more we can do with IT.'

 

One of his plans, he says, is 'electronic dispersal of tickets through railway kiosks'. He is hugely optimistic about the options technology offers in future services. 'Software, intelligently applied, can help us mine a lot more information on customer behaviour, and build dynamic pricing systems,' he says. I get a sense that while people in India see the present transformation of the railways as dramatic, for Sudhir things have just started rolling.

 

(from Nandan M Nilekani's book Imagining India)

Satyam's path to disaster

Following is the chronological summary of events which saw IT major Satyam Computer Services, founded in 1987, on its path to disaster:

1. December 16: Satyam gets board's approval for acquisition of Maytas Infrastructure and Maytas Properties for $1.6 billion.

2. December 17: Defers Maytas' acquisition on stiff investor resistance.

3. December 18: Schedules board meet for the proposal of buyback of shares on December 29.

4. December 18: British mobile solution provider Upaid files a law suit against Satyam in a district Court in the US over Maytas deal.

5. December 24: World Bank bans Satyam for 8 years on charges of data-theft.

6. December 25: Satyam objects to World Bank's statements; asks Bank to apologise to the company or face legal action.

7. December 25: Mangalam Srinivasan, non-executive and independent director resigns from board.

8. December 27: Postpones board meeting to January 10, 2009 to consider buyback of shares.

9. December 27: Promoters disclose that their entire holding in Satyam pledged with institutional lenders since 2006.

10. December 28: Two independent directors - Krishna G Palepu, Vinod K Dham - resign from the board.

11. December 29: M Rammohan Rao, another independent director, resigns from board.

12. January 1: Satyam-Upaid case hearing over the Maytas deal in Texas court on January 7.

13. January 2: Promoter holding in Satyam drops to 5.31 per cent from 8.27 per cent after sale of pledged shares by lenders.

14. January 5: Satyam brings up old report by research firm Forrester complimenting company's innovation strategy.

15. January 6: IL&FS Trust company sales 2.45 crore shares of Satyam pledged to institutional investors by the promoters

16. January 6: Raju family holding in Satyam falls to 3.16 per cent after sale of pledged share by lenders

17. January 7: Satyam Chairman Ramalinga Raju sends letter to board tendering his resignation and admitting to fraud in accounting books.

18. January 7: Satyam Managing Director B Rama Raju also resigns.

19. January 7: DSP Merrill Lynch terminated its advisory engagement with company.

(http://us.rediff.com/money/2009/jan/07satyam-path-to-disaster.htm)

Govt rules out bailout package for Satyam

The government on Thursday ruled out any bailout package for crisis-ridden Satyam Computer, but assured to do everything required to save jobs under the framework of its responsibilities.

"This is a decision that the new board of Satyam would take. This government is not going to directly or indirectly subsidise wrong doing and fraud in Satyam," Minister of State for Industry Ashwani Kumar told reporters on the sidelines of a Petrotech-2009 conference.

When asked, is government not in favour of bailout package for Satyam as such, Kumar said that the new Satyam board "... are the ones to decide. The government would try and support within the framework of its responsibilities and do whatever it can to preserve and save jobs and to protect the good name of India in corporate sector".

He said, "The government will try to ensure to the extent possible that the brand equity of the country and Stayam in terms of its intellectual capital is preserved and the jobs are secured to the extent possible".

The minister said, "I do believe that Satyam aberration should not in any way take away from the great success story of India in the IT sector."

Earlier speculation was rife that the government is considering a package of up to Rs 2,000 crore to bail out Satyam Computer. But shortly after the Prime Minister Manmohan Singh's review meeting on Satyam on Tuesday, there was media speculation that government would be considering a financial assistance ranging between Rs 500 crore and Rs 2,000 crore but the PMO office declined to comment on it.

However, Commerce Minister Kamal Nath, who attended PM's review meeting, had said that the government was open to consider a financial package for Satyam Computer.

The official sources had also indicated that the government appointed Satyam board had written a letter to the finance ministry raising concerns about the liquidity crunch in the troubled company.

Satyam has 53,000 employees and needs over Rs 500 crore a month to meet the staff cost. Satyam had plunged into a deep crisis following the founder-chairman B Ramalinga Raju's admission that he fudged the company accounts to the tune of Rs 7,800 crore.

(http://in.news.yahoo.com/48/20090115/1238/tbs-govt-rules-out-bailout-package-for-s.html)

Success tips from world's top management guru

He's the world's most influential living management guru and the first Indian-born to be so honoured.

Which is why, in these troubled economic times, when countries are slipping into recession, companies are going bankrupt, CEOs are taking pay cuts and pink slips are the norm, it makes sense to take Coimbatore Krishnan Prahalad's sage words of advice.

Strategy is about stretching limited resources to fit ambitious aspirations.

Management is a lot of blocking and tackling.

Many companies don't understand yet that outsourcing isn't about exporting jobs. It's about importing innovation.

You have to have faith. You cannot lead if you don't believe.

The technology eliminated the tyranny of the few over the many.

 

Invest time in languages and intercultural awareness. Focus on becoming part of the global citizenry. In exchange for the opportunity to participate everywhere/ anywhere in the world, you have the obligation to do something productive which will improve the world. Develop a personal mission, a desire to leave personal legacy.

You cannot solve the world's problems in a small company. The goal is not to say that we are going to do it anyway, with or without money. It's a nice, brave thing to say, but very soon you'll be running out of cash.

The negative side of a small company is that there are no dampers. Just because you can make a change quickly, the temptation is to act. Speed is nice to have, but going faster to hell is not how I want to run a company. I want somebody to keep pushing the organisation. I also want somebody to say, 'Let's be thoughtful about getting this done right.'

It is the bamboo that bends in heavy winds that has another day to live. The trees that don't bend get uprooted.

If you do precisely what you're supposed to do, and you're boxed in, then you're going to do that very well. But if pressed to do things that aren't in your normal job description, the challenge can push you to a new level of achievement.

 

If you want new ideas, you have to push yourself into the periphery.

How many senior executives discuss the crucial distinction between competitive strategy at the level of a business and competitive strategy at the level of an entire company?

Especially in troubled times, leaders must behave like emotional and intellectual anchors. You must steady the organisation and have a passionate belief that what you are doing is important.

Leadership is about what you do when the going gets tough� The critical issue is about faith, passion, and, most importantly, authenticity -- so that people know you are not pretending. People can see a sham."

I spend a lot of time talking about what we're doing in terms of strategy. You have to give the same message over and over again.

 

Consumption can and does increase income. Consider health care. If you are legally blind with cataract, you can't work and neither can the family member who cares for you. But if you get access to inexpensive cataract surgery, now you can see and both of you can work. Have you consumed eye surgery or increased the family's earning power? You've done both. It's two sides to the same coin.

In an organisation, one unique person makes a difference, but you need teamwork to make it happen.

In a company like ours, if we want to do something, we can just call a meeting. But in a small company, you have to exercise caution and build your own personal dampers so that you don't act on everything. Sometimes not acting may be smart. But if I get the feeling that everybody's becoming so thoughtful that nobody's doing anything, I want to go and light some fires somewhere.

If you are a good manager, you always worry about your competitors. To take the competitors for granted is a mindset of a closed economy. Nobody in the open market takes anybody lightly.

Leaders do not allow themselves to be weighed down by the difficulties of the present but are focused on the possibilities of the future. Instinct, passion, courage and confidence are the precious ingredients of managing differently. A vision of the future is critical to motivate people to become innovative.

 

Being anchored in reality and taking small steps towards that vision is equally critical. We have to learn to look at the stars and count the grains of sand at the same time.

Any company that cannot imagine the future won't be around to enjoy it.

Managing differently calls for a major revolution in the way we perceive our own roles as managers. The biggest transition that needs to be made is to move away from managing to leading, from administration to entrepreneurship.

Whether it is quality levels, logistics, costs, scale, working capital management, or capital efficiency, there is no room for the second best. Good is not good enough anymore.

If you want to understand how the future is being created, you have to understand how decisions get made, how people allocate resources, how choices get made.

 

Why don't people have economic opportunities? Because there's no information. You don't know what the price of fish is in the next village. The large-company Internet business models, the Internet poor, the new business models -- they're one big circle. They all interact with one another. But we have to make this a business issue.

A commitment to lead in the creation of new opportunities -- an opportunity-led management system -- is critical. Most often, managers change in reaction to a crisis or a problem, not in search of opportunities

People are intelligent enough to know what they are getting and not getting.

The greater the angst of sales and marketing managers over the decision to sell core products to outsiders, the more likely it is that the firm's in-house channels are less efficient than alternate distribution channels

How to distinguish non-core capabilities from core competence? In the broadest terms, a company many have 40 or more primary skills, but only 5-15 core competencies. Senior management has to focus on which competencies are at the centre of their business.

 

Excitement is manifested strategically by employees seeing how their jobs link up with attainment of a goal. The new strategic intent presents a challenge, and engages employees' intellectual energy. Like Ford did in the early 1980s with its quality campaign, managers must make every employee aware that without their help, the company will not regain or increase its competitiveness.

Companies that create the future do more than satisfy customers, they constantly amaze them.

Beyond reengineering a firm, top managers must know how to reengineer their entire industries, a la CNN, Wal-Mart, and Service Corporation International. Pathbreakers all, they recognized their core competencies and developed strategies to reshape industry structures around their competitive competencies.

Rebuild leadership before you need to.

Business must start with the assumption that consumers don't want to apply the same amount of effort to construct all their experiences. Today, I will take whatever coffee I'm given -- but on another occasion, I might be more particular.

 

Management must be performance oriented. Meritocracy, stretch targets, clear measurements and rewards based on contribution are the keys to a high performance culture.

We have company think, not consumer think. What we make is not what they want.

People shift their priorities, where they want to customise, where they want to invest their energy and expertise.

If you build systems for total participation and co-creation, buying off-the-shelf is a sub-set and is also possible. If you only build a system for what's available and what you make, then people cannot co-create.

Over time successful business recipes become dull -- your success leads to business structures that may become dysfunctional. What we need to ask ourselves is -- is there a different way?

 

To be extraordinarily sensitive and concerned about key competitors, especially those who have more experience and technology capabilities, is not a wise thing to do. I think we have to distinguish between being respectful and being concerned about competitors.

At headquarters, managers are focused on the markets already being served, not the potential markets of the future. When this happens, the company is hostage to existing markets, even though it may possess highly-evolved core competencies which can be leveraged for the future.

By creating a mismatch between aspirations (more) and resources (less) you create entrepreneurship. Entrepreneurs leverage resources and change the business model to get more, for fewer resources. So the task for us is, how to create aspirations that rest outside the current resource base

You have to have faith: otherwise, every time there's a minor problem in the implementation, you'll change direction. Just because you are going north, doesn't mean it's going to go in a straight line.

Start with clear specifications and a clear idea of gaps by auditing your own internal structure. Then create small internal experiments to move one step at a time rather than turning everything upside down.

 

Consumers did not have much share of voice. Now they do. There is a fundamental transition that is taking place -- from a firm-centric society to a consumer-centric society.

Creating a new market is key... not to create new needs for these consumers, but to find new ways to sell the same products and services in an innovative way

It's a question of taking a lot of small steps: don't try to eat the elephant in one big bite.

The social architecture -- the mindset of managers -- must change. You cannot procrastinate. People must be empowered to act. Real time action requires a managerial mind-set. It also requires distributed leadership -- a shared agenda commonly understood, but access to information at very distributed levels.

Everyone should act in a way that's consistent with the broad philosophy of the company, so you enhance your brand, you enhance the experience of consumers.

 

(from http://specials.rediff.com/money/2009/jan/15slide1-success-strategies-from-worlds-top-management-guru.htm)