A Close Encounter Pulin K. Dutta

I like asking people, especially, businessmen and managers what do they think is the purpose of “business”. When by chance I got involved in a massive company wide Management re-education programme for senior managers, towards the later half of my career as a practising manager; I realised that often we did not know the real purpose of the word, “business”, the management of which was our livelihood. Strange? Yes. The first time I asked this question was at our head office in Bombay. It was rather a close encounter — my job was on the line. You see, I was almost forced to address my bosses by the new CEO from Europe. I did not know before that he was fully trained by the Japanese for quite sometime. He was deputed to India to turn around the company, which was sinking. One fine morning I found him in my office in Pune. He indicated that I had to present before a senior group for one full day on my pet subject “We are in a New Economic Age”. So I should come fully prepared. But he did not tell me that the group was his board of management itself. All my director bosses plus three upper level Finance managers, much senior to me. He also told me that my friends at the company’s European head quarters told him about me, which was music to my ears. That made me agree to his proposal, without much thinking. May be I was hasty. Seeing the audience I was worried to say the least. Even they were not at all amused to see me, I could sense. The good thing was that the CEO was sitting next to me in front of the overhead projector, which gave me some comfort. He was very warm and effusive in his introductory remarks reaffirming his faith in calling me to this gathering. The audience was not interested. I could feel they were by now awfully angry. I knew it was foolish of me to have come to this meeting in the first place; but then I still had to do my job. In a way, I had no choice. So I put up my first one-line transparency on the OHP, “What is the purpose of ‘business’?” My discomfort increased a lot more, because, the audience was not even looking at the projection on the wall, as if it was not for them. The CEO quietly observed that they meant to humiliate me and touched by hand to make me comfortable. I asked again, “May I not learn”? Still no response. All were sitting glum and angry. At this point, nearly after five minutes of waiting, the CEO broke the ice, “Come on gentlemen, I am sure you can answer Dr Dutta’s simple question”. That I think was enough to burst their patience and one very senior Director, let me name him as “Mr O” angrily retorted, “Dutta (earlier he used call me Doc), do you think we were cutting grass all these years? Don’t you know business is for making money? That’s all”. The tone was abrasive and insulting and the others were enjoying that I was snubbed royally. Their smiling lips and eyes meant to convey — “you asked for it, didn’t you?” Surprisingly though, I did not feel intimidated at all. Then a dramatic thing happened. The CEO pointedly asked the “Mr O”, who tried snubbing me and making the others enjoy the dramatic delivery of his dialogue: “Oh! Mr O”, you knew that the purpose of ‘business” was to make money?” After a pause he asked again, “then how is that you were managing this company for past two years with heavy losses?” That was it! The smiling lips and eyes were now quivering; all the proud heads were down. It was an unbearable sight — a nerve-wrecking situation for me, the smallest man in the room. To diffuse the tense situation, I requested the CEO to give us a break for a cup of tea, which he did. While in the lounge, I was sipping my tea alone in a corner, I saw “Mr O.” coming towards me. Then I saw a few more of the bosses also coming along. It was ominous. I did not see the CEO, my host, anywhere. That made my life worse. I thought, now the moment of truth for me had arrived. I would be asked to leave the company immediately. However, quickly I decided to cover up my agony, I could welcome them with a smile to disarm them; but was determined not to offer my resignation. I also decided that in the event they advised me to resign, I would not oblige and instead ask for a dismissal letter from the company, I was sure that I did not commit any crime by asking just a question. Did I? Soon it appeared that my fear was unfounded. “Mr O”, began by saying, “Sorry Doc, I did not mean to hurt your feelings”. Now the others too were smiling again shaking hands with me and they wanted to probe me further on what was in my mind. But suddenly the CEO appeared on the scene from nowhere and called back everyone into the meeting again. Now, the atmosphere was more congenial to go ahead with my talk. Under the bulldozer the ego barriers got flattened, which helped me. Still, it was a touch and go kind of situation — a rather close encounter, I can vividly remember. Their positions did not bother me; but their behaviour was certainly upsetting. As a student long ago, I even argued with Pandit Nehru during the Guwahati Refinery movement, in the presence of my mentor, late Hem Baruah, and Minister late Siddhinath Sarma. Panditji too in his inimitable way was irritated; but eventually had to listen to my piece quietly, thanks to Hem Baruah’s encouragement. My old friends like Bujarbaruah, Hem Dev Goswami etc. might remember this story. Now, back to the question. Will you like to answer now, “What is the purpose of business?” Take your time and we shall see what it is a little later. The intriguing story is that the Mecca of business schools, known as the Harvard school of Business Administration, (HBS in short), Boston, Mass, USA, also did not have a better idea of what was the purpose of ‘business’, the management of which they were supposed to teach. This was usually the story with every business school I visited so far, in India and elsewhere. They don’t know nor teach the real purpose of “business”. While getting ready to celebrate the 50th foundation day, few of its past pupils and successful business managers realized this gaping hole and created a think-tank to come up with a clear-cut definition. The outcome after months of deliberations was a definition worth remembering everyday by any business-manager and educated, big and small, old and young. This definition is: “Businesses exist to create and deliver value-satisfaction at a profit”. The word ‘profit’ coming last, many macho managers didn’t like. Only recently in a large PSU, 25 upper level managers spent almost half an hour discussing. For my sessions to progress, this definition is important. So it has to be laid well. Note that ‘creating and delivering’ is the process and ‘profit’ — the result. Only a process can give real result, any other way will mean manipulation! We shall talk more about it later. “Value-satisfaction” means in simple language, ‘good value for money’, or Value-satisfaction=quality/cost The value-satisfaction will be higher when quality is better and cost is lower. Is that possible? Of course, yes. That is what I have been doing for a number of years and I am enjoying it. We shall learn this together later. (The writer may be contacted at pulin.dutta@vsnl.com)

I met the Prophet

I MET THE PROPHET!

It was at Birmingham in April 1992. The venue was the famous Motor Cycle Museum. In a huge meeting hall, more than 300 high profile business managers, executives, CEOs and management teachers and students were gathering to learn at the feet of the Master, Dr.W.Edwards Deming. I was the only one from India, which made me rather nervous. I was wondering why was I there? Why my company sent me there at such a cost? Yet, I was deliriously happy, as for decades, I was waiting to see the great man, termed as the Prophet of the New Economic Age in flesh and blood. It was too much to believe that one day I would be face to face with him.  I was indeed very fortunate, because a short while later he passed away, while asleep at home in 1993.

The American President in 1988, while honouring, described this man as the “Father of the 3^rd. Industrial Revolution”, responsible for resurrecting Japan from the debris of the World War II.  I quote below a commentary from the famed video film, “Deming of America” aired by the PBS in the USA in 1991:

“In 1960, the Prime Minister of Japan acting on behalf of Emperor Hirohito awarded Dr. Deming Japan's Second Order Medal of the Sacred Treasure. The citation on the medal attributes Japan's rebirth and worldwide success to Dr. W. Edwards Deming. No honour among Businessmen and Industrialists in Japan is more coveted”.

In passing it may be necessary to refresh the minds of the readers that while 1^st. Industrial Revolution began with the invention of the Steam Engine nearly 300 years ago in Britain, the 2^nd. Industrial Revolution occurred when Henry Ford I, employed the conveyor belt method of mass production of automobiles in the early part of the 20^th. Century.

Dr.W.E.Deming, an American was invited by the Japanese business and industrial leaders and he came there in mid 1950, with an aim to help the devastated nation to rebuild themselves in a unique way which no other industrial nation ever thought of trying. The Japanese people, industries and the Government listened to him, took his words seriously, undertook massive training under him in an unprecedented manner, as the need for survival, applied his teachings in practice in total sincerity. The rest, as they say, is history.

Dr. W.Edwards Deming held a PhD degree in Mathematical Physics and later on also took short-term course in Statistics guided by the great Professor Fisher in London.

In the mid 1960s, as a student in London, for the first time I realised the massive impact of this Japanese miracle. Well-known British and European motor cycles, cars, cameras, watches were quickly disappearing. More and more “Made in Japan” stuffs were filling up the stores and burning the roads. The quiet invasion

was a big success. The story was same in the USA, and many other industrial markets in the world. The so-called champions of free trade were now shouting hoarse against the Japanese invasion and cried out for Governmental protection. The markets, worldwide though were in the buying spree of goods ‘Made in Japan’ for high quality at lower cost and easy availability.

The economies of the USA and the Western European nations began showing steady decline since 1968; but then they failed to realise its consequences. If you now looked back how the World War II (1939-1945) impacted upon the nations, these observations over the past 50 years could be clearly seen. Victors turned victims. A careful study will also reveal, just like the Japanese lost the World War II, the victorious Western world also began losing in the market place due to only their self-inflicted injuries. Even now, they are suffering and time is running out. The worse is we in India too are not seeing this picture clearly and still imitating the West. The present euphoria of Indian economy showing good signs should be discouraged and ways and means to make it flourish further should be studied, learnt and considered for sustainability. Otherwise, we too may soon face the same situation as they are finding themselves in the West.pulin.dutta@gmail.com

Anna Hazare ends Fast

নতুন প্ৰভাতৰ দোকমোকালিত আমাৰ কৰ্ত্তব্য়
পুলিন দত্ত

আজি ২৭ আগষ্ট, ২০১১ চন| এতিয়া গোধুলি ৯ বাজি ৩০ মিনিট হৈছে| খবৰ পালোঁ আজি লোকসভাত লোকপাল বিলখনৰ ওপৰত এটা সন্মতিসূচক প্ৰস্তাৱ লোৱা হৈছে আৰু সেই প্ৰস্তাৱৰ ওপৰত ভিত্তি কৰি প্ৰধান মন্ত্ৰীয়ে আন্না হাজাৰেলৈ অনশন এৰিবলৈ অনুৰোধ কৰি ৰামলীলা ক্ষেত্ৰলৈ দূত পঠিয়াইছে| আশা কৰোঁ আন্নাই এই অনুৰোধটোলৈ সন্মান জনাই কাইলৈ পুৱাতে তেখেতৰ ১২ দিনীয়া অনশন সমাপ্ত কৰি দেশৱাসীক ধন্য় কৰিব| মহাত্মা গান্ধীৰ প্ৰেৰণাই যে আজিও ইমান ডাঙৰ কাম এটা সম্ভৱ কৰি তুলিব পাৰে, সমগ্ৰ পৃথিৱীয়ে তবধ মানিবলৈ বাধ্য় হ’ব, যদিও কিছুমান সদায়ে নিজৰ দেশখনৰ একোকে ভাল নেদেখা ভাৰতীয়‍ই আন্নাৰ কামত একো মূল্য় নিদিব| কোনো কথা নাই, তেওঁলোকৰ ’চিনিচিজিম’ স্বত্তেও এইখন মহান দেশৰ প্ৰকৃতাৰ্থত গনতান্ত্ৰিক জনমানসে আৰু নিৰ্ভেজাল ভাল মানুহ ডঃ মনমোহন সিঙৰ নেতৃত্বৰে আমি আগ্ৰসৰ হবলৈ পাৰিমেই বুলি আজি ম‍ই নিশ্চিন্ত| কপিল সিবাল,অম্বিকা সোনি, দ্ৱীগবিজয় সিঙ হতঁৰ দৰে ভূৱা গান্ধীৱাদী সকলে নিশ্চয় ভয় খাব, কাৰণ তেওঁলোকৰ ’ৰাজনীতি’ক প্ৰধান মন্ত্ৰী আৰু জনতাই নাকচ কৰি দিলে, ১২ দিনতে| এইখিনিতে মানিব লাগিব, অৰ্থমন্ত্ৰী প্ৰণৱ মূখাৰ্জীৰ প্ৰভাৱশালী সাংসদী নেতৃত্ব আৰু বিচক্ষণ মধ্য়স্থতাকাৰীৰ কৌশল| এইটোহে আচল ’ৰাজনীতি’! সময় অনুসৰি বিৰোধী পক্ষৰ সৈতেও ইতিবাচক আলাপ-আলোচনাৰে সমস্য়াৰ সমাধান কৰিব পৰা মূখাৰ্জী ডাঙৰীয়াক শতবাৰ ধন্য়ৱাদ জনালোঁ|

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