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Showing posts from August, 2010

Lessons from bike maker Ideal Jawa.

I remember ever since I was in the ninth grade in school, I started spending holidays and weekends at the factory accompanying our Uncle Manohar Singh ji. It was great fun and many days were spent absorbing so much by just casually observing things. We used to supply a lot of manufactured components to the famous motorcycle manufacturing company 'Ideal Jawa' in Mysore. At that time they produced 1500 motorcycles each month. Produced under license from the Czech manufacturer Jawa, beyond doubt it was India's finest motorcycle, I often accompanied my Dad, Uncle and quality staff whenever they visited the Jawa plant in Mysore for a number of issues. I observed, but did not realise until much later, that the plant had a rather large workforce yet there were very few managers, supervisors and other staff. Ideal Jawa was owned and managed by the dynamic duo Irani brothers Rustom ji (Commercial) and Farouk ji (Technical). Rustom ji & Farouk ji personally worked very hard, driv...

Don't you know you have committed a crime?

Starting with Nehru, the Indian government has always been anti-business and anti capitalistic.  It favoured state ownership of everything. That approach has not yielded required benefits to the people but it has certainly maimed Indian entrepreneurship, and harmed India's development immensely. I narrate a real life experience of mine. Two things one can be certain of, death and taxes. Once set up, government bureaucracies can never be shut down. On the contrary government departments and their numbers continue to grow until Government strangulates life of the very people who generate wealth. Governments rarely generate wealth but provide governance. Politicians often feed their fantasies, egos, and programs by using government machinery but burdening the people with taxes. Paying taxes is the duty of all earning and consuming citizens, provided the taxes are reasonable. The government's appetite for funds is insatiable and it needs ever increasing amounts of ...

The Lopez Effect

Every now & then things get tough for a lot of organisations. This may be caused by technology, competition, recession or whatever. When the nasty stuff hits the fan, this is what typically happens at large organisations; The CMD (Chairman & Managing Director) will call a meeting and scream and rant on how useless and lazy his entire management team is and how they have let the organisation's profitability slide. blah, blah, blah!!!! The boss desperately searches for a scapegoat. Sometimes sacrificial lambs are found and a few heads roll and the situation only deteriorates because attacking people rather problems never helps . Sometimes the boss realises the truth, that there is no one individual or department or function that can be specifically blamed except the boss himself. After venting his ire, the boss will issue a diktat to the management team. "I want my organisation to return to high profitability so this is what the team is going to do. I want you to...