Friday, June 29, 2007

The Importance of a Customer

What all organizations need to frame on every desk of every executive for reading on a daily basis. And also on all walls wherever there is space available.


“A customer is the most important visitor in our premises.

He is not dependent on us. We are dependent on him.

He is not an interruption of our work. He is the purpose of it.

He is not an outsider to our business. He is part of it.

We are not doing him a favour by serving him.

He is doing us a favour by giving us the opportunity to do so.”

Mahatma Gandhi

Thursday, June 28, 2007

ICICI Bank offers 15 Lacs to Family of member killed by them

In a startling development, ICICI Bank has offered to pay 15,00,000 (1.5 Million Indian Ruppes) as compensation to the family of Mr. Y. Yadaiha, the person killed by its recovery agents in Hyderabad last week.

What is your life worth Mr. Kamath?

Can someone kill you and offer the price that you put on your life to your family?

Tuesday, June 26, 2007

Follow up on ICICI recovery story

Today I read in Times of India that police has arrested four employees of the recovery agency, Elite Financial Services.

The Supreme Court direction in such cases is very clear. The agencies appointed by the banks and other financial institutions are the direct responsibility of these banks and financial institutions. They can not escape the actions of their agents and associates.

I thus urge the police and powers that be that Mr. Kamath, CEO of ICICI Bank be arrested and put behind bars as an exemplary punishment. This will serve as an eyeopener for all the banks that are operating within the country and their executives who sit in air-conditioned office and are responsible for the reprehensible activities of their agents and associates.

One top person being sent to jail will wake up everyone down the line. But I think this is again going to be wishful thinking.

Some more information on Crezendo

The other day I wrote on the controversy surrounding the Crezendo Condom from Hindustan Latex. Since then there has been an explosion of visitors to my blog.

Sex really sells!

While searching for more information about the product, many people visited my blog. This made me search too.

And I found a very hilarious account on this link http://kennysia.com: Ansell vibe4u Vibrating Condom Review

Also, as this product sells for AUD (Australian Dollar) 12 in Australia, you can make a killing exporting it from here by buying it for Rs 125/- (Less than 3 AUD) and selling it for 12. How's that for a profit.

Please send generous donations to me when you are able to capitalize on this idea

Monday, June 25, 2007

Death to ICICI Bank

Today I read a shocking incident pertaining to recovery of personal loan by ICICI Bank.

In Hyderabad, a person has been detained illegally and beaten up brutally by a private recovery agency of ICICI Bank.

This person later died due to his injuries at a local hospital.

The police has registered a case of wrongful confinement and culpable homicide not amounting to murder! How can they register as culpable homicide not amounting to murder when an actual murder has taken place.

All this after the Supreme Court of India giving clear guidelines to all the banks operating within India on methods of recovery. The Court has clearly said that 'There will be no use of force'. But the banks don't want to listen.

This person lost his life for a paltry sum of 15,000.

I wish death to ICICI Bank.

Read the complete article here

http://timesofindia.indiatimes.com/India/Man_dies_after_being_confined_by_debt_recovery_men/articleshow/2145190.cms

Friday, June 22, 2007

A personal experience with credit cards

I want to tell you my personal experience with credit cards.

I started with a single card from Standard Chartered Bank in the year 1990. This was a Master Card, very soon they sent me another free card with Visa affiliation. Thus I had two cards.

One of my friends was working in a DSA for ANZ Grindlay's bank and he requested that I take a card from him in a particularly lean month of sales for him. Thus I got my third card, very soon ANZ Grindlays sent me another card with Visa affiliation. Thus now I had four cards.

I very soon acquired another credit card, this time from American Express called the green card.

At this point of time, I was feeling on top of the world. I had a combined credit line of more than 5 Lacs, which at that point of time meant that I could buy a house using just my credit cards!

All through the time, I used my cards judiciously and never maxed them out, although the temptation to do so arose on many occasions.

Being in the IT industry, I fell into a debt trap following the dot com bust that happened in year 2000-2001.

I now had an outstanding on my card and no source to pay it up. Very soon the bill collectors were on my back. I had to answer one harassing call after another.

Sometime in June 2001, I settled with the credit card company and paid them their outstanding dues after getting a discount from them.

But before I did this, I did my home work. I insisted on a settlement letter from the company (Standard Chartered Bank, which by then had taken over ANZ Grindlays) before I made my payment to them. For some strange reason they asked me to pay 96000 in six installments of 16000 each even when I offered to pay them in one go.

Later on I learned that this was another of their dirty tricks. What they are banking upon is that the payer will falter and in their settlement letter they mention that even if you miss out on any one payment, the settlement stands canceled and the money already paid stands forfeited!

Anyway I managed to pay all the installments in time. But I kept getting their statements showing outstanding dues for the next 1 full year. When I complained to them, they said that it takes time for the statements to stop. This I found hard to believe given the fact that everything they do is computerized and they have the ability to suspend a card within an hours notice. During this period when the statements were still coming, I had to confront a bunch of bill collectors, who I could ward off only when I showed them my settlement letter along with the receipt of the payments that I had made.

I held on to the American Express Credit Card just in case of any emergency.

During this time, I have had to fight American Express for waiver of charges on many occasions. I once withdrew cash of 8000 and they levied me two separate charges while it was their system that was at fault as it did not allow withdrawal of more than 5000 from the ATM. When I took this up with them, they reversed the charges.

Tell me, is this not a trap? How many people must have been shortchanged this way?

At the time of renewal of this card, when American Express charged me the annual fees, I refused to pay and told them that they could cancel my card. They waived the charges and I have not paid any annual fee for the last three years.

On another occasion when I paid my monthly dues at an American Express Bank branch, my cheque went missing. Inexplicably this happened at their own office. They put late charges on my account and also charged me interest for the delayed payment. I once again fought with them and accused them of probably shredding my cheque just to levy late charges and interest. When confronted thus and in the light of evidence that I had always paid on time everytime, they had no option but to reverse my charges.

Thus the readers should remain vigilant of all the charges that appear on their statement and fight back to have charges they don't agree to be reversed. Using a credit card only in emergencies or in situations where cash is not accepted is the best way to handle them.

Do not make a costly purchase on your credit card. Save for such extravaganzas. If you do make such a purchase opt for the EMI scheme from the company. This carries a much smaller percentage rate on the credit that you avail.

Now Government wakes up to credit card fraud

An article that appeared today in the Mumbai Mirror, edition dated 22nd June 2007 talks about MRTPC getting into act to probe the wrong doing of Credit Card companies.

It is a known fact amongst people who watch this industry that this kind of skimming has been happening for year. The Credit Card Industry is so loaded with money that they have been able to buy silence from the authorities.

My question is, when a person commits a robbery by snatching a chain on the street, you first beat him up, then haul him to the nearest police station, then the police extracts their pond of flesh from the thief. Later he is consigned to the legal system where the reason why he did the act in the first place is ignored and he is sent to prison.

How many such cases can you remember of corporate thieves going to jail? Not many I believe. Therefore it becomes all the more important that this industry is reined in and the MBA's who head and manage these schemes be sent to jail. Only then the white-collar people will realize that they can not get away with fraud and larceny.

Imagine a credit card issuing company like ICICI which has 20 Million cards committing a fraud of 100 rupees on 10% of their card base. Do you think this does not happen? Wait for the MRTPC report which will tell you the truth unless these companies are able to buy the investigators from here too.

Article reproduced below for your reading pleasure.

MRTPC orders probe into credit card fees


NEW DELHI: Alarmed by reports that credit card companies have collected over Rs 6,000 crore in a decade from customers by way of fines and late fee, India’s antimonopoly w a t c h d o g has ordered a probe into the fees levied by them.

The Monopolies and Restrictive Trade Practices Commission (MRTPC) has asked the Director General of Investigation and Registration (DGIR) to probe the issue and report back, sources have revealed.

The commission ordered the probe after taking cognizance of reports that claimed credit card issuers extracted more than Rs 6,000 crore as late fee, cash, advance fee, billed finance fee, overlimit fee, cash withdrawal fee, insurance charges, cheque pick-up fee and service taxes during the past 10 years.
DGIR would direct banks to furnish details of their income during last three-four years derived from other than the credit limits (extra charges), the sources added.

As per the MRTPC Act, DGIR has to submit its preliminary investigation report before the commission within 90 days.

The commission has already initiated judicial enquiry against Citibank, HSBC, ICICI Bank and HDFC Bank for adopting unfair practices for selling credit cards, as the DGIR submitted its preliminary report in which it suspected these organisation to have violated norms.

In its report, DGIR had found that these banks were making false promises to their credit card customers and caused loss to the general public by violating the rules framed by the Reserve Bank of India. It also alleged that the banks were delaying delivery of bills and realisation of cheques toward payment just to charge increased interest rate, late fee and fines, etc.

The commission had initiated judicial enquiry against HDFC on November 10 last on the same grounds.

The sources added enquiries against American Express Bank, ABN Amro and country’s largest lender State Bank of India on the same issue are also going on. PTI

Thursday, June 21, 2007

CIBIL the new Evil

CIBIL (Credit Information Bureau of India Limited) is the new evil that threatens to disturb the lives of common Indian people.

CIIBIL setup by an Act of the Government of India, is a privately held company. The mandate of this company is to provide lenders with data on people who have availed credit. This agency monitors all loans, credit card data and personal loan information.

But the problem is the company will not provide you with your own credit report!

Internationally too, credit bureau's followed a similar method until consumers fought back and got the right to access their own credit report at least once a year free of cost.

How does this report affect you. Read below experience of international consumers

The Creditor/Consumer relationship seesaws

Originally, credit reporting services were created for the benefit of creditors. In the beginning, the consumer just went along with the system. However, as time went on, the consumer, backed by the government, forced the issue and gained some encouraging ground. Errors on credit reports could drastically affect someone’s life, in that they could be refused employment, refused tenancy, refused credit, and generally be given a bad name in the credit industry. So the consumer fought for access to their credit information.

Now, as the system stands, the scales are much more balanced. Consumers have more rights: to see their credit report information, to object to errors in them, and a number of other positive outcomes. And for the credit bureaus, more information could be collected, and they could sell that information to marketers for extra profits.

So it seems that both sides are content with the system. But each side, the consumer and the credit bureau, is constantly jockeying for a better position. So the relationship continues, back and forth. But the bottom line for consumers is, as mentioned, credit reports can deeply affect their lives. That’s why it’s so important to check your credit report regularly – and have peace of mind.

Taken from http://www.thehistoryof.net/history-of-credit-reports.html

It is now up to the people of India to get similar access to their own credit reports. How many of us have not had a dispute with our lenders? It could be over wrong billing, fraud, excessive charges for which we have refused to pay up. All these delinquencies are being put on your credit report and they will make life very difficult for you in days to come.

More writing on the problem can be accessed at http://www.msnbc.msn.com/id/6612374/

What kind of prudes we have become..

Yesterday, I read a lead article in the Times of India, Mumbai edition that talked about MP government getting upset over the sale of Crezendo condoms manufactured by our very own public sector undertaking Hindustan Latex Limited.

It seems that the BJP government sees condoms only as a birth prevention device and they would have nothing to do with this product being sold in the market. They want the sales stopped and the product withdrawn (pun unintended).

What kind of prudes have we become?

For those who don't know the product, it is available online at
http://shopping.sify.com/shopping/product_detail.php?pid=13177041&prodid=14210253

and is described as

CREZENDO VIBRATING RING FOR ULTIMATE PLEASURE --- The pack has a vibrating ring and three premium condoms. With Crezendo Vibrating Ring you can take your lovemaking to places it hasn't been before. Crezendo Vibrating ring is designed to take you for a 20 minute joyride through the realms of vibrating pleasure. It provides the ultimate stimulation for you and your partner. It is safe , reliable and comes with an instruction leaflet. It is truly your passport to "The Republic of Pleasure" (From the sify online e-commerce website, link provided above, not my words please)

Any dumb adult would know that intercourse is only possible when the mind is driven by desire and pleasure. It is that aching feeling that sends the blood rushing to the organs of procreation / recreation. Nobody indulges in sex only for the purpose of procreation. If that was the case there would be no rapes taking place in the world. I remember reading a quote which said that "If sex was such a dirty thing, why do people do it with someone they love" (source unknown).

Even to procreate, the process of copulation has to take place. And this is not possible if there is no rush of blood to the relevant organs of the body. A condom can only be rolled on if the stick is up (to put it in the most politically correct way).

When will the powers that be realize that there are more important issues like poverty, bad roads, unavailability of water and electricity to name some of the problems that affect the people of the country?

I agree that population is also a major issue, but at least they can leave the choice of condoms out of it.

Wednesday, June 20, 2007

Does anyone remember Tagore?

Recently I happened to watch a program on SonyPIX a television channel that offers its viewers a different fare than regular English Movie Channels.

But this was a non-film program that was called 'Actor's Studio' Basically this program brings aspiring actors, directors, writers and all other people who work in the industry face to face with a famous personality.

And this is a question - answer session which is not moderated at all. Imagine Amitabh Bacchan doing such a jig on some channel in India, the response would be terrific to say the least.

During the course of the interview a person in the audience asked Martin Sheen whether he has had a first hand experience that has touched him and how he has been able to bring that into his acting.

Martin Sheen related an incident where being unable to attend his father's funeral, he was suffering untold mental misery. During this time, he was asked to do a scene which wanted him to shout, cry and generally get very upset. He told the director, I will give it just one shot and that's it. Martin then proceeded to let go his emotions keeping in mind his failure to attend his father's funeral.

Continuing in the same vien, he talked about his visit to Agra where he happened to listen to a poem. This poem so moved him, that he was completely transported to another world. He talked about the high regard he has had since then for India and its people who produced such a poet.

Do you know who he was talking about? He was talking about our very own Noble Laureate Rabindra Nath Tagore. And the poem he was talking about was 'Where the Mind is Without Fear'.

Martin then asked the audience whether they would like to hear the poem, to which they responded in the affirmative. He narrated the entire poem extempore! When he did so, the hair on the back of my head were standing at their ends.

Now how many Indians do you know who can repeat this feat? Not many I believe.

For all those who do not remember, here is the beautiful poem reproduced for you.

Where the Mind in Without Fear
Rabindranath Tagore

Where the mind is without fear and the head is held high
Where knowledge is free
Where the world has not been broken up into fragments by narrow domestic walls
Where the words come out from the depth of truth
Where tireless striving stretches its arms towards perfection
Where the clear stream of reason has not lost its way into the dreary sand of dead habit
Where the mind is lead forward by thee into ever widening thought and action
Into that heaven of freedom, My father, Let my country awake.


I just found a link to this wonderful program on wikipedia. Have a look!
http://en.wikipedia.org/wiki/Inside_the_Actors_Studio



Monday, June 11, 2007

The Toxic Entrepreneur

David Javitch: Employee Management
The Toxic Entrepreneur
It's time to take a hard look at yourself to see if your behaviors and attitudes are creating a toxic environment at your company.
By David Javitch
May 01, 2006


URL: http://www.entrepreneur.com/humanresources/employeemanagementcolumnistdavidjavitch/article159442.html

Last month, I wrote about toxic employees--those individuals who, like nasty chemicals, can be harmful and destroy almost anyone or anything they come in contact with. You may have even known this type of employee or, worse yet, may have employed one. If you're lucky, you don't have one working for you now!

But did you ever consider the fact that you could be a toxic person yourself? My guess is, it's never even crossed your mind. After all, you're the boss and you've worked hard to build a successful organization. So how could you be toxic?
It happens all the time.

But you're the boss: You call the shots, you're in charge, you sign the paychecks and employees report to you. So how could your behavior be problematic? Well, it can be problematic even if you are in charge or, more important, it can be problematic simply because you are in charge.

Whatever your management style, whatever your company size or whatever your industry, your employees want and need to admire and respect you. They want to look up to you, and often, they want to model themselves after you. However, when your behavior or attitude turns toxic, you confuse your employees, who previously looked up to you. They experience a conflict between wanting to see you as credible, trustworthy and admirable, but are actually experiencing you as negative, and counterproductive to productivity and worker satisfaction.

Clearly, you have a problem on your hands.

Remember, just because you're in charge doesn't mean you're exempt from causing problems. And your employees aren't immune from imitating your problematic behaviors and attitudes. Employees try--and often succeed--in repeating the behaviors they see, especially the behavior of their boss. If your actions or thoughts are negative and counterproductive to success, then you've created a standard, a norm and a model for others to replicate. And neither you nor your employees are immune from the virus-like spread of these behaviors and attitudes to others. Soon, the work environment becomes toxic, with productivity, profits and morale all decreasing. And you may not even know why.

The Signs of Toxicity

Often, the signs of toxicity are obvious to others but not to you. They're most likely hidden by your refusal or inability to see them. Some of the most virulent forms of this poisonous negativity include:

  • Increases in turnover and/or absenteeism
  • Increases in industrial accidents
  • Increases in employee complaints
  • Increases in your criticism of others
  • Increases in your employee demands that go beyond acceptability
  • Increases in your cryptic, negative or sarcastic comments
  • Increases in arguments
  • Decreases in productivity and profitability
  • Decreases in the numbers of employees who seek out your opinion or direction
  • Decreases in morale
  • Decreases in your satisfaction with others
  • Decreases in successes and accomplishments from both you and your employees
So what's the cure? First, take a deep breath and calm down. No one's perfect, not even the boss. Being aware of the problem is the first step toward resolving it. Second, identify the symptoms. Reread the previous list; try to add more items to it. Third, get objective feedback by confiding in a trusted friend or fellow business owner who can provide you with honest information on your behavior and attitude, without fear of reprisals for that honesty.

Fourth, identify which part of what you do is really the issue. Are you verbally critical or abusive? Are you overly impatient? Are you excessively fault finding? Do you complain too much about employees or productivity? Are you more negative with certain people, processes or events? Do you believe that people shouldn't need support or encouragement from you? Do you purposely avoid interacting with certain employees? Do you provide more negative feedback than positive to others?

Take Action

Once you've identified someone whom you can trust, whether that's a close friend, an executive coach or consultant, or another business owner you know well, here are a few steps you can take to resolve the problem:
  • Discuss and share with this person exactly which behaviors or attitudes seem to at issue. Make sure you both agree on these points.
  • State why you want to change or modify these behaviors.
  • Identify ways or methods you can begin to transform the challenging areas. Spend a lot of time on this one because this is critical in achieving success.
  • Set up a realistic timeframe to achieve your goals.
  • Ascertain ways to evaluate your progress and know when you've succeeded implementing new behaviors and attitudes.
  • Finally, be sure to reward yourself for your progress. Rewarding yourself will increase the probability that you'll repeat these positive behaviors.

In addition to working through the issues with your mentor, it's also important to identify a person with whom you've had difficulty because of your toxic behavior. Once you're on the path to recovery and have interacted with them again, ask them for their perception of this latest contact. Find out how they perceived the "new you." You can truly begin the process of de-toxifying when you demonstrate to that person that you honestly want feedback and that giving it in no way will result in any retribution, even if the feedback is negative. Then praise or thank them for giving you the feedback.

You'll gain brownie points with this person simply by requesting the information and then responding in a positive manner. You'll be showing yourself to be a more open person, intent on gaining information to improve your behavior. And in that way, you'll be modeling for that employee a positive behavior that hopefully they'll use with others. In one fell swoop, you'll have accomplished two goals at once. And you'll be well on your way to eliminating the toxicity in your life.

David G. Javitch, Ph.D., is Entrepreneur'com's "Employee Management" columnist and an organizational psychologist and president of Javitch Associates, an organizational consulting firm in Newton, Massachusetts. With more than 20 years of experience working with executives in various industries, he's an internationally recognized author, keynote speaker and consultant on key management and leadership issues.


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