Thursday, September 29, 2011

Ten Things Only Bad Managers Say

Ten Things Only Bad Managers Say

Economic Times,                     29th September 2011

Reality Check: How many of these not-so-nice some things do you hear in office?

By Liz Ryan

We know the kinds of things good managers say: They say “Attaboy” or “Attagirl,” “Let me know if you run into any roadblocks, and I’ll try to get rid of them for you,” and “You’ve been killing yourself—why don’t you take off at noon on Friday?” Bad managers don’t say these things. Helpful, encouraging, and trust-based words and phrases don’t occur to them. Crappy bosses say completely different things. For your enjoyment, we’ve gathered together 10 of the most heinous, bad-manager warhorse sayings. Do any of them sound like something a manager in your company might say (or might have said this week)?



1 If you don’t want this job, I’ll find someone who does
Great leaders understand that the transaction defining the employeremployee relationship—the fact that an employer pays you in cash while you cough up your value in sweat and brainwork—is the least important part of your professional relationship. Good managers realize that to get and keep great people, they have to move past the dollars-and-cents transaction and let people own their jobs. Good leaders give people latitude and let them know that their contributions have value. Lousy managers, on the other hand, love to remind employees that it’s all about the transaction: “You work for me.” They never fail to remind team members that someone else would take the job if you ever got sick of it or let the lousy manager down in some way.



2 I don’t pay you to think


This is what a bad manager says when an employee offers an idea he doesn’t like. Maybe the idea threatens the inept manager’s power. Maybe it would require the lousy manager to expend
a few brain cells or some political capital within the organization. Either way, “I don’t pay you to think” is the mantra of people who have no business managing teams. It screams, “Do what I tell you to do, and nothing else.” Life is way too short to spend another minute working for someone who could speak these words.



3 I won’t have you on eBay/ ESPN/Facebook/etc. while you’re on the clock
Decent managers have figured out that there is no clock, not for whitecollar knowledge workers, anyway. Knowledge workers live, sleep, and eat their jobs. Their e-mail inboxes fill up just as fast after 5:00 p.m. as they do before. Their work is never done, and it’s never going to be done. That’s O.K. Employees get together in the office during the daytime hours to do a lot of the work together, and then they go home and try to live their lives in the small spaces of time remaining. If they need a mental break during the day, they can go on PeopleofWalmart.com or Failblog.org without fear of managerial reprisal. We are not robots. We need to stop and shake off the corporate cobwebs every now and then. If a person is sitting in the corner staring up at the ceiling, you could be watching him daydream—or watching him come up with your next million-dollar product idea. (Or doing both things at once.)



4 I’ll take it under advisement
There are certain words that we never use in real life—only in business and only in ways that let us know that the speaker is shining us on, bigtime. “I’ll take it under advisement” means “Go away and die, and don’t speak to me again unless I ask you to.” It means “I am not going to do whatever you just suggested that I do, and I want you to know that I value your opinions less than I can tell you.”



5 Who gave you permission to do that?
My brother worked at a huge tech company, and one day he and his team of Software Quality Assurance folks were meeting at the office before heading to the airport. They gathered at 6 a.m. in a conference room to talk about their plan once they hit the ground in the destination city. The door opened and a manager walked into the conference room. “Who called this meeting?” he asked. “Only a grade level E5 can call a meeting.” My brother left that job a few months later. People who obsess about hierarchy and permission and grade levels and the like are people you’d be better off avoiding, especially in relationships that give them power over your life and career.



6 Drop everything and DO THIS NOW!
Any manager can have a last-minute emergency that pushes everything else out of the way. Good managers pull this move sparingly and only in real crises. Poor managers do it every day, and they never remember the dozen equally critical (at one point in time) priorities they’ve already told you to drop everything else for. A good comeback if your manager has this habit is to answer, “Yes, of course. That’ll push [yesterday’s drop-everything project] to next Thursday—is that fine?”



7 Don’t bring me problems. Bring me solutions
This chestnut showed up during the era when people were beginning to think about business process and realizing that employees could often solve their day-to-day problems in the moment and on the ground, rather than having to go upstairs to get help. That’s O.K., but too many managers have reinterpreted “Bring me solutions, not problems” as “Don’t complain—shut up and deal with it.” The fact is, business processes and organizations are complicated today, and often the employee who spots a problem doesn’t have the information she or he needs to solve it. That’s where a manager can help, if he or she is oriented that way. Managers who say, “Bring me solutions” are often really saying, “Stop telling me what I don’t want to hear.” Working for a person like that will shorten your lifespan.





8 Sounds like a personal problem to me


One of the worst situations I ever encountered as a corporate HR leader involved an employee who went off the rails on a business trip for a Las Vegas customer event. I heard through the grapevine that two employees assigned to share a hotel room had exchanged heated words. On investigating, I learned that the hot mess of an employee had gotten drunk in Las Vegas and showed up (still drunk) in her hotel room with her (also drunk) cabdriver/instant boyfriend in tow. I was horrified on a million levels and virtually ran to her manager’s office to talk once the trip was concluded. “How are we going to deal with this?” I asked him. “Oh, it’s O.K.,” he said, “I told the two young ladies to sort it out between then.” “But—but,” I sputtered, “our employee got drunk and disorderly, was nearly arrested in the hotel, brought a drunk stranger into her shared hotel room, and wouldn’t leave when her co-worker protested. The poor marketing gal had to call another co-worker and switch rooms at four in the morning!” “I know,” said her manager, “and I think there’s a lesson there in how to work harmoniously on a team. I’ve asked the two women to have lunch and talk about it.” That didn’t happen, because we fired Ms. Unruly the same day. If your manager can’t see misbehavior and snuff it out, you have a problem.



9 I have some feedback for you … and everyone here feels the same way
Good managers give their employees feedback when it’s warranted, and they try to emphasize and reinforce the good things. Bad managers don’t give praise, but they ladle on the criticism, and the really bad ones add an extra twist of meanness: They say, “Everyone here feels the same way.” Pretty soon, you start to feel that you can’t trust anyone in your shop and that everyone hates you—until a coworker mentions that your lousy manager said the same thing to her. Poor managers need to throw in a few dozen extra “votes” with their barbs, just to keep employees off guard. A true leader would talk about conflict or performance issues regularly in staff meetings, resolving whatever is at issue without passing along anonymous jabs.



10 In these times, you’re lucky to have a job at all
The funniest thing about a manager who would open his mouth and say, “You’re lucky to have a job at all” is that these managers never seem to think they’re lucky to be working—just everyone else. “You’re lucky to have a job at all” in an era of more than 9 percent unemployment is the same as saying, “I can’t believe you manage to stay in that 90 percent of the population that is working.” It’s a huge insult, but worse, a statement of personal failure on the manager’s part. People who live in fear don’t tend to see the potential in themselves, or in others. If your manager’s native mode is critical, and if she tosses around compliments like manhole covers, know that there are plenty of other employers who’d be happy to have someone like you in the mix.
(Liz Ryan is an expert on the new millennium workplace and a former Fortune 500 HR executive.) Reprinted by permission from Business Week International, (23/09/11), a McGraw-Hill Companies, Inc. publication

















Friday, September 9, 2011

Top 10 Financial Planning Rules of Thumb

Top 11 Financial Planning Rules of Thumb

http://www.tflguide.com/2011/09/top-10-financial-planning-rules-of-thumb.html
September 6, 2011

In life people want shortcuts – I think that’s the reason rules of thumb find some place in once life. These financial planning rules of thumb are very basic & not at all full-proof as requirement of 2 different people can never be same. They can just give you some idea but important financial decisions should not be taken on basis of these. Editor of The Journal of Financial Planning (US), once noted that “Rules of thumb are for people who want to decide things without thinking about them.” But still it will be unfair to suggest ignoring all of them.

Saving & Investing rules of thumb

1. What should be my asset allocation or how much equity should I have?
This is the most common rule of thumb which is used in investment world. Rule says Equity percentage in your portfolio should be equal to 100 minus your age or in other words debt should be equal to your age. For eg if you are 30 you should have 30% of your investments in debt & 70% (100 – your age) in equity. This doesn’t take care of risk appetite, risk tolerance or how far your goals are.
2. How much emergency fund I should have?
Emergency Fund helps people in case of sudden loss of income, medical emergency etc. Thumb rule says one should have emergency fund equal to 3 to 6 months of monthly expenses. You can keep it at 3 month if you are a government servant but in case of private job or profession you should keep it on the higher side of the range. Make sure you don’t use this amount for day to day needs/wants. For retired person emergency fund should be equal to 1 year of expense.

Retirement rules of thumb

3. How much money will I need in retirement or how much corpus I should build?
You should have 20 times your income saved for retirement and plan to replace 80 percent of pre-retirement income. But here retirement means a retirement at age of 60 ; life expectancy of 80 – and a conservative lifestyle. But now things have changed; you would have dream/planned lot of things for retirement.

Another method is to have liquid assets with cash equivalent of at least 100 months of last income for simple normal living and medicare of spouse and self. It is better if the multiple is 120.  These liquid assets should be interest or dividend yielding.

Another simple method:
No. of retirement years....till death of individual and spouse...whichever is longer/ later multiplied by money required for first year of retirement.....for this

  • Money here is simple cash assets or equivalent ...
  • no land/ sites...considered
  • if a building, rental value is considered....
  • self occupied house is not considered..



4. How much I need to invest every month to achieve retirement goal?
“Indians are great savers” sorry “Indians were great savers”. New generation is in some different mood they would like to enjoy the present & have no idea about future. If you have just started to work & would like to have a very simple lifestyle & retirement at age of 60 you can do it with saving (read investing) 10% of your income. If you are planning for an early retirement start with 20% savings. Other rule says if you are in early 30s Save 10% for basics, 15% for comfort, 20% to escape. If you are late by decade add 5% more in each category.

Insurance rules of thumb

5. How much insurance should I have?
Here insurance means insurance. Rule says one should have sum assured of 8-10 times of his yearly income. I think this rule is far from perfect but still can be used as starting point. This does not take care of any of your goals, liabilities & even complete expenses. Some modified version of this rule says that if you are in early 30s insurance should be 12-15 times of your annual income; if you are in 50s take 6-8 times.

Loan/liability/home rules of thumb

6. How big should be my House?
The value of house should be equal to 2-3 times of your family annual income. So if you & your spouse are earning total Rs 20 lakh – you should buy a house in Range of Rs 40-60 Lakh. But never exceed 60 month salary.

7. Maximum EMI that I can have?
Ideally 0 will be the best answer but few of the big assets like home require some loan to buy them. Experts agree that your EMIs should not be more than 36% of Gross Monthly Income at any point of time. It should be even lesser when you are close to your retirement. If you want to talk about home loan EMI, it should not be greater than 28% of your gross income. Now TENURE of loan is missing here – for tenure read No. 6 & 8 rules of thumb.
8. Rules of thumb for buying a car
This is one of the biggest purchases after your home. And this is depreciating asset – today morning you purchase a car for Rs 10 lakh & by the evening it will be worth Rs 8-9 Lakh. After 5 years it will not be even of half value but still you keep buying cars regularly – buy at 10, sell at 4 & loose 6. (repeat the cycle) There are few rules that you can follow:
  • Value of car should not be more than 50% of the Net annual income of the owner.
  • Purchase a used car or buy a new & use it for 10 years.
  • While buying car with loan stick to 20/4/10 – Minimum 20% down payment, loan tenure not more than 4 years & EMI should not be higher than 10% of your income.

Rate of return Rules of Thumb

9. In how many years my amount will double?
It’s a very simple & most common rule – if you divide 72 by rate of return you will get the number of years in which your money will double. For Eg. If you expect a rate of return of 12% you money will double in 6 years (72/12=6) & what about if rate of return is 8% – 72/8=9 years. This can also be used in reverse order at what rate your money will double in 5 years – 72/5=14.4%
Rules similar to rule of 72:
Rule of 114 & 144
These can help you in how many years your money will be triple (114) or quadruple (144) at some rate of returns.
Rule of 70
You know it or not but inflation is your biggest enemy – rule of 70 will tell you in how many years value of money will be half. You just need to divide 70 with rate of inflation so if rate of inflation is 7% – 70/7=10 years. So in 10 years your Rs 100 note will be worth Rs 50.
10. Rule 10/5/3
This is a US rule of thumb which says in long term you can get 10% return from equity, 5% return from bonds (let’s say FDs) & 3% from the t-bills (liquid funds – these returns are more or less close to the range of inflation). Indian economy is growing at some different pace & even inflation numbers are different. Can we safely say if inflation is 6% (t-bill rates) we can get 8% from the fixed deposits & 12% from the equity or in other words – in long term equities will deliver twice the return of inflation. Try combining Rule of 72 with this rule – you will get some amazing numbers.


11. Wealthy:
consider yourself wealthy? A rule-of-thumb formula used by Thomas J Stanley & William D Danko in The Millionaire Next Door, a book that studies selfmade American millionaires, can help determine if you are.
(Age *Pre-tax income)/10 == Net worth

The logic behind the formula is that the older you are and the more money you make, the more net worth you should have. Dividing by 10 is a rule-of-thumb that fits current culture. So if you are a 35-yearold living with an annual income of Rs. 6,00,000 a year, your net worth should be Rs. 2.1 million [(35 X 6,00,000)/10 = 21,00,000] for you to be considered wealthy. If you are 20 years old and you make Rs. 3,00,000 lakh a year, you would be wealthy if your net worth was greater than Rs. 6,00,000.
Some time Rules of thumb will give you false sense of security or wrong guidance – so take them with pinch of salt.

Thursday, September 1, 2011

Nurture Innovative thinking

Analysis of the world's most innovative companies suggests a few common things:
  • Keep Company populated with people — including senior managers — who excel at the five skills of disruptive innovators:
    • questioning,
    • observing,
    • networking,
    • experimenting, and
    • associational thinking
  • Keep processes that encourage employees to question the status quo, to engage in observations in all types of environments, to network far and wide for ideas, and to experiment on a regular basis.
  • Keep encouraging everyone to "think different" and reward those who do.

Michhami Dukkadam

Michhami Dukkadam


Michhami Dukkadam meaning ‘My bad deeds be fruitless’. Jains at the end of festival of Paryushana, ask for forgiveness for anything wrong that I have done or caused any harm to anyone.
This is not to just follow the tradition, but I really mean it and ask for forgiveness if I have hurt someone.
mann vachan kaya se jaante hue ya ajante hue dil dukhaya ho to aapse Michhami Dukkadam
Translation: If I have caused you offence in any way, knowingly or unknowingly, in thought word or deed, then I seek your forgiveness