Rs. 1 Black Money outside India = Rs. 6 NPA with Indian Banks

We are concerned about Rs.30000 crs black money outside India but what is our concern for six times of that amount lying as banking NPA? 

When Govt wants to draft a law against the criminals they should involve some of the hardcore criminals. Who better than them know the mindset of criminals? But since we cant do that we involve Police because they deal with criminals therefore second best to know their mindset.  

Similarly when RBI wants to deal with mammoth NPA problems they should not only involve branch managers who deals with borrowers but also should involve financial consultants engaged in fund syndication and advise entrepreneurs. 

New RBI guidelines of asset classification before accounts becomes NPA is interesting but these kind of guideline make banking extremely procedural and only compliance centric. Branch people are finding it difficult to address customer service properly and on top of that so many compliance , reporting & auditing is paralyzing the banking operations. 

Rather than spending time in data analysis of borrowers performance bankers remain busy with compliance and reporting. Asset classification etc is fine but RBI must change the way credit is being managed in the banks. 

Some of the pointers for practice need to stop and new practice to start:

-  Excess funding just because security is adequate should stop  

-  Non adherence of adequate promoters contribution must stop

-  Auditors must be made accountable for fudged data certification 

-  Smart mechanism to be in place to get data filed with Income tax directly

-  Relationship banking which is ignoring financial prudence

-  Surprise check of accounting data and factory/office  

-  Credit monitoring independent of credit processing and branches

-  Involving CAs in monitoring who can understand intricacies of accounting & implication of ratios.Branch people with their work pressure cant do proper monitoring. 

-  Making it strongly deterrent for CAs , Advocates and Valuers to certify wrongly

-  Active monitoring mechanism even during pre SMA 0 level. Bankers need to engage talent who can play consultative role with borrowers who lack financial prudence. 

There are four class of defaulters:

1) Willful Defaulters - Borrowing with malafide intentions (Must come down substantially)

2) Ignorant Defaulters - Borrowing without managing capacity , low financial acumen , not able to understand implications (Needs to be provided desired support)

3) Potential Defaulters - Not willful but neither genuine. Risk takers at the cost of bank's money (Must be monitored closely)

4) Genuine Defaulters - Market, policy and external factors makes them defaulter (Needs support for recovery)

Along with rigorous compliance and reporting , proactive engagement and consultative approach will yield better results in the management of PA & NPA both.

Mr. PM ignite human spirit not animal spirit

We very easily forget the very basic thing about our existence. We all are human being and therefore can and should not live like animals. 

Therefore the phrases killer instinct and animal spirit is highly misleading and I would say anti social phrases.  

We need human spirit to be ignited not animal. To those who want animal spirit to spread must watch animal planet channel to know how they live and whether we need that kind of spirit? 

Animal spirit and killer instinct make us kill one another make us forget about human sensitivity towards fellow human being. On top of that technology focus makes us forget human side of every thing. Recently I was reading a paper on 'How to make Healthcare Human Centric?' Entire process and business of treating human being has become inhuman - technology and money focused. 

Delightful Customer Experience and Pathetic Customer Experience - difference is - One is taking care of all senses and emotions of customers and other is inhuman ignoring all these critical human aspect of customers and treating customer just an object to make money. Companies that are winning in this space are engaged in human side of the business. If your company wants to become customer centric first step is to become human centric.  

All these call centers are another example of inhuman aspect of business. It irritates human and caller gets inhuman response in return from the person being called. In most organisations people are running for quarterly targets and in return not only get remuneration but lots of ailments. Excessive greed for speedy growth and higher return is ignoring human side of the story. 

"The most striking contradiction is China where, despite a fourfold multiplication in two decades in real GDP per capita from a low initial level, life satisfaction has not improved."    - Richard A. Easterlin University of Southern California and IZA 

The above observation by the professor clearly states - Happiness is not directly related with growth and development. Ignoring human side of the growth is what China model demonstrates. 

Development - Yes , Growth - Yes but process should not ignore that we all are Human Being first and therefore measurement of happiness is critical while pursuing ANY growth model.

Mr Prime Minister while mandate is for development and growth please keep approach of Being Human at the core. Involve your HRD minister to keep track on Human Happiness Index along with your growth initiatives.  

Wow ! & Weird ebook is up onsite - For Free

Happy to inform all readers that ebook Wow! & Weird is up on the site & available for free.  

All are welcome to visit the site and join readers club. 

Hope to see you there ASAP. Welcome to the new blog Sunilwrites.com 

Whether College Degree Matters in times of Internet ?

We have country wide discussion since last 2 days about the portfolio compatibility of HRD minister Smriti Irani.  This makes us thinking relevance of  education in life.  Are our formal degrees really critical for success in any field ? 

10th and 12th Standard results and parents are extremely concerned about the future of their child. Which course to select and what not. 

With so many options available and no clue about what each degree and work entails is the real problem of today. Children are not aware about what kind of work they will do in life with the degree they are opting at the age of 16 or 18. Parents are more clue less with multiple options available. Both children and parents are confused , worried and in the state of paranoia.

Therefore decision making abilities give way to explore what others are doing. Well what others are doing also is not based on any scientific research and aptitude of the students. Even aptitude varies student to student. Everyone is deciding on a gut feeling and according to the trend. Herd mentality is playing major role here. 

Parents must remember education and success are two different things. While our immediate Ex PM got the top job because of his higher education while present PM got the top job sheer by his determination and past track record and not education track record. We have examples of Bill Gates, Mark Zuckerberg & DH Ambani all are non graduates and on the other hand Narayanamurthys of the world.  

In his book 'The Professional' wellknown author Subroto Bagchi writes "Our education system measure IQ just based on left brain and completely  ignoring right brain capacity. There are 8 other forms of intelligence like literary, musical, kinesthetic (sports persons posse this), interpersonal, intra personal, spatial (Navigational), naturalists and spiritual."  

Therefore what we do in life depends more upon what drives us and not what we learn during degree college. We have shining example of IIT & IIM A graduate but successful author Chetan Bhagat pursuing writing as a career. He is writing what he saw & learned from life during his student life and not what he formally learned from the books. 

Do not worry much about the degree as one can study whatever but DO WHAT YOU LIKE. Degree will make one aware about the world around us , it will help us interpret the world better. But as we grow we realise our interest and passion & so just follow that. 

We have many Engineers, MBAs and CAs and we also need many musicians, painters writers , film makers. It takes guts to get out of herd mentality and do something what you really savour - now or even after graduation.  Do not waste life in doing things what you don't like just because you did mistake in course section at the age of 16 o 18.

We are living in different times where degree is important but not sufficient for the success. Passion , determination & mission of doing something matter the most and mere degree cant give you that. 

In times of internet we can learn and study anything without formal degree but human skill like determination, interpersonal skills , intra personal skills , communication skills , physical fitness is what we need to learn in universities. I think biggest challenge of the new HRD minister is to bring these elements in our education system which is missing completely.

From MASS production to MASS customisation.

Business Turnaround - Step Number One

Yes CEOs across the globe is putting CUSTOMER at the center when they plan for business turnaround. 

Finding reasons for sickness is certainly a good beginning for turnaround process to begin with however for any business it is CUSTOMERs who pays for its survival - be it good business or turnaround case.

Therefore immediate focus on better customer experience can give CXOs to work out plan and strategise turnaround initiatives. Preserving customers who have not yet left the organisation is critical and first priority & making them company evangelist is next best on agenda. 

Company may be sick for any reason but the moment customers know this they may continue to do the business but search for alternative is on immediately as everyone needs dependable service providers or suppliers. Even best customer experience service providers like Kingfisher airlines started losing customers the moment they know about the financial mess the company is in.  Only hope for their survival was their customer loyalty they had created by offering great experience. 

Imagine what can happen to companies not offering not so great customer experience.

Therefore while working on other issues to  turnaround the company immediate sharp focus on the customers is the key survival tool for turnaround companies. Many a times pathetic approach towards the customers is the reason for the companies to go sick and even die.   

Point is do not wait till your enterprise go sick to focus on customer experience. Focus on customer experience to avoid sickness and even is the situation arise customer can bail your enterprise out with their loyalty and word of mouth support.  

Communication is the KEY but ..

We have had a lot of discussion on how poor communication by our ex PM and poor communication campaign by Cong routed them.  Yes communication is very critical it is about reaching out, it is about informing what is being done and what is possible. It is about what is available and what consumers need , it is also about what one knows and what one did. It is about what is one can do and what one stands for.

Many a times technocrats think that their technical skill can replace need for good communication. We find many poor communicator at higher levels. Verbal Written & Gesture - Marketing Advertising & Social Media , at all levels and mediums.

   

At organisation level and at individual level too communication is very critical. We need communication as main subject in our all college level studies. We are so much obsessed and focused on technical education that need for good communication skill is never considered a basic need for the success. 

But communication will fail if PRODUCT is bad. Good product is a prerequisite for good communication to succeed. Best written book must be able to make it to the list of best selling book. Communication can not make bad product a good one rather in times of social media more communication about not so good product will it make it fail faster.   

We should not worry whether Cong should work on product or communication, as the rule applies to every one and every company. Introspection at all levels is necessary.

NAMO moved the Cheese and ate it too !!

Who Moved Your Cheese is the apt book to read for all our politicians who are doing so called  introspection. 

Mr Narendra Modi has not only moved the cheese and but also comfortably ate it too. Everyone else during the campaign was denying that no cheese is not moving and they remain focused on old cheese. 

Yes , Governance and Development is the new cheese and others remain focused on caste , communal & secular politics.

Inability to see moving cheese happens when you lose touch with the ground reality and remain surrounded by YES men.   

Same rule equally applies to business enterprises. In a highly competitive market cheese is moving and those who can see is taking early advantage. 

Some will not accept till complete loss of business and some will agree after much of a loss to the business. 

New cheese is better Customer Experience (CX).  People have enough of options for goods and services.  They are looking for better customer experience.  Companies those who remain focused on all other internal competences will soon find that customer are not interested how smart you are internally.What matters to them or what count in the market place is what kind of experience your enterprise put together is delivering to its customers.

Many companies those who claim to be customer centric are only equipped with customer service department. They neither have mapped their customers journeys , nor has thought of offering scintillating rational and emotional experience (Most companies even have no clue about these aspects of designing CX).

Cheese is on the move , companies at the forefront are taking advantage. Companies in denial mode or in no clue mode or surrounded by YES men CXOs will realise the reality and learn lesson like the one learnt by most political parties after 2014 election (Most of them have not and will not learn even now).

Once again recommend the book Who Moved My Cheese.

How 101st Bank can still WIN !!!

Most of us most of the time become so obsessed with doing things that we only focus on WHAT we are doing. We fail to focus on HOW part of it.  

Even answer to WHAT will not give you the correct answer. Asking follow up question HOW will make the things clear. 

We are fighting for freedom is WHAT. It is non violent (HOW) means is what makes what we do meaningful.

We are publishing books is WHAT , we are doing it beautifully is HOW

We are upbringing our children is WHAT , we have learned about parenting and applying those principles is HOW

We are doing our job is WHAT , we are totally committed to it is HOW (or we just do for time pass is also HOW)

We are doing election campaign is WHAT , HOW aggressively or otherwise we are doing will decide its effectiveness. 

Customer Experience fails mostly not because product and services are useless or not up to the expected mark. Companies pays attention only on WHAT they are doing and ignoring HOW part completely. Achieve targets come what may results into mindless calls from call center  . mis-sell & corruption.  Defining and focusing on HOW is immediate priority if enterprise want not only to offer superior customer experience but also wish to become ethical.   

WHAT is rational and HOW is emotional. We human being are emotional creatures. 

WHAT you do/say goes to head and HOW you do/say goes to heart.

Therefore while designing Customer eXperience companies MUST focus on HOW part of  it to connect emotionally with the customers. HOW you make them feel while interacting with your company will decide positive or negative word of mouth (WOM) publicity , possibility of repeat business. 

Once you know about WHAT , deciding HOW can make you different.   

There are 100 banks in the country but 101st bank can still win just by focusing on beautiful HOW !!!

Wow ! & Weird

Happy to inform that select posts (about 150) of the blog is finding its place in the book called Wow ! & Weird being selected by Bloodygoodbook.com  a project by Rashmi Bansal.

I am sure readers will get an opportunity to read all the best posts at one place initially on website and if more readers like it , in the form of ebook and even more readers like it in the form of print book.

Keeping the tradition of many first time ideas of this blog , foreword for the book is written by not well-known industry professional but by a young and dynamic engineer and MBA aspirant Anish Desai (21). They are the GenNext , they not only need innovative ideas but they are driving business landscape with their innovate approach. We not only have to write for them but also have to learn from them too. 

I will soon update readers when the book is available online at Bloodygoodbook.com 

Products We Buy , Leaders We Choose !!

Products we buy:

1) Fresh with no customer reviews , not sure whether it will serve the purpose , moderate on promise , moderate perceptions about delivery , proven side effects of the company it belongs to. 

Fresh Product from Lousy Govt Company ( Side effects: ineffective , require repairs or call back as not proven track record of delivery , moderate chances of wasting our resources if it fails , Coming from Govt company so issues will be addressed on scaling up  )  

2) Fresh but with some customer reviews, not confident whether it will last long. High on promise ,  low on delivery , may have major side effects.

Chinese Products ( Side effects: health hazard, unsafe for use , high chances of wasting our resources if it fails, issues cant be addressed if it fails as comes without guarantee )

3) Experienced with customer reviews some bad and many good , confident that it can be long lasting and will serve the purpose , high on promise high on delivery , may have some side effect.

Apple (Side effects : Costly, theft prone, low chances of failing , brand image will make them addressing issues , if any quickly )

However of we don't select from these brands we will have unbranded product with nothing guaranteed at all. 

Do we also select leaders like we choose our products? Election 2014 is a choice between select brands or unbranded products.