I had initially not intended to have business as a category in my blog.But since half of my waking hours are spent doing just that I though it in sync to share my views on the subject of business as well.It is rather unfortunate that the first post is about one of the biggest debacles that the Indian Industry has ever seen.
I will not waste time in stating the obvious and what is already being sensationalised by an overzealous media.I would specifically talk about 3 issues :
1.Everyone is sympathetic about the employees of Satyam but what makes me wonder is that what were 53000 people doing when all this was happening.I am not just talking about low productivity levels but also a clear pointer to a very poor business acumen.It is amusing when Mr Mynampati says that I was responsible for the Improvement of Margins but not responsible for what exactly the Margins were.And he is the CEO of the company.In simpler English he is saying I will try to make more money but I do not know how much money I make !!!
Let us evaluate the shocked managers too – what they are saying is that we knew that at an individual project level our costs were higher than the margins but somehow the projects at a company level turned out to be profitable.Again its like saying I did not study,then I did the exams very badly but somehow when the results came I had topped the class ! Very true my dear ,it kept happening till 9th standard but when you gave the final board paper you tanked.
Any Manager at whatever level he is knows how his business is doing and those who don’t should be prepaired to be shocked ,surprised and sacked.
2.Just before the final showdown at Satyam Omkar Goswami narrated a very pertinent conversation between Watson and Sherlock Holmes in the Jan issue of Business Today.Watson asks Sherlock Holmes” Is there any point to which you wish to draw my attention?”Homes replies,”To the curious incident of the dog in the night time”.Watson says ,” But the dog did nothing in the night time”.and Holmes remarks “That was the curious incident”.
He was reffering to the independant directors on the board of Satyam.Soon after the fraud came to light all of them fell like a pack of cards.It was more of indifference or more of collusion will be investigated but the fact that when every Tom,dick and Harry cried “Wolf” on the decision to siphon money into Maytas how could a distinguished board chaired by the Dean of ISB,D V Ram Mohan Rao choose to look the other way.
3.A very sensible remark was made on CNBC by one the NYSE analysts when asked what could be the impact of such a happening on the image og India as a business destination.He very aptly said that “It happened in the US,it happened in India and it can happen anywhere in the world.No amount of systems or processes can contain a mind driven by greed.We can try and strenthen the regulatory framework but there is no guarentee that it will prevent all future misadventures.” Point noted Mr. Analyst.
Let us work on the regulatory framework that comes in built in all humans – the conscience.So we can say …….. Satyamev Jayate.