Not so Yummy

Kentucky Fried Chicken is owned, by a company with a distinctively “uncorporate” name – Yum! Brands, complete with the exclamation mark.  This blogger is a vegetarian and therefore has not really sampled its wares. But I am reliably told that its fried chicken, is fairly delicious.  But these days, alas, KFC is not sounding very yummy.

The problem is in China. KFC is everywhere in China. I mean everywhere. Sometimes I wonder if the icon of Americanism in China is not McDonald’s or Coca Cola, but KFC. Every street corner seems to have one.  The Chinese were happily munching or chewing or licking, or whatever you do with fried chicken. All that changed in December of last year. CCTV, that great bastion of broadcasting  and China’s answer to Doordarshan,  aired a program that claimed that local suppliers to KFC had given its chicken excessive amounts of antibiotics.  CCTV is more renowned for informing the world that Xi Jinping had a good night’s sleep rather than do investigative reporting. But, expose, it did. I am not aware of the merits or the details of the case, but you can imagine what happened to the sales of KFC in China. It dropped by a vertiguous 41% in January.

Ouch. KFC has recovered from earlier unfavourable events – SARS and Bird flu, although it was responsible for neither. Apparently, the Chinese can’t be kept away from fried chicken for long. But will it recover from this latest blow ? The Chinese are fed up with food adulteration. Remember baby food adulterated with melamine some 3 years ago.

Yum! Brands , is of course, not just KFC. Its also Pizza Hut and Taco Bell. So the company will ride this crisis. But its exposure to China is massive.  Half its global sales of some $4 bn comes from China. And this is the dilemma of China. The opportunity is massive. But the risks are also high.

This incident also calls into question the issue of safety or desirability of processed foods. Popular perception is that all processed food is bad. Nothing could be farther from the truth. In fact the so called “fresh” product is often the most unsafe.  Just compare tap water with Bisleri. If you knew what the “fresh veggies” went through before they landed in your shop, you might be tempted to turn non vegetarian. If you bought that raw turmeric from the store – well, I will spare you the gory details of what that goes through. Will you buy milk from the milkman if he brought the cow to your doorstep ? The less said about hygiene in the neighbouring  Udipi, the better.

In general, responsible companies that process food take greater care; from the farm gate to the time it is processed. Like for like, processed food is actually safer than “fresh food” – unless you grew it yourself.  But as the KFC incident, or the horsemeat problem in Europe shows,  there can be disastrous lapses there too.  In the quest for profitability – individual or corporate, risks are taken with food; chiefly pesticides in crops and the cocktail of hormones and drugs with animals.

Any takers for retiring to the ancestral village (Sriram – the distance from Eugene to Pattamadai is rather long !) and growing your own stuff in the backyard ?

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Papa, pray for us

Joseph Ratzinger has resigned. Joseph who ? you may ask. And what's in a resignation - after all somebody is resigning from something all the time.  Ah well; its not just anybody. It's Pope Benedict who resigned about a week ago. Popes rarely resign - its one of the few "jobs" for life. The last Pope to resign was Pope Gregory in 1415 to end the Western Schism - a complete mess when there were two competing claimants as Pope.

 

Pope Benedict stated that he was getting on in years (he is 85 after all) and that the leader of a billion catholics around the world needed "strength of body and mind".  While he cited the lack of strength of his body, I dare say his real reason was the strength of the mind.

 

It has been a period of great tumult for the Catholic Church. It was during his papacy that the child molestation scandals in Europe and America burst into the open. Leaked papers from the Pope's butler showed the Vatican in very poor light - messy politics and  the whiff of corruption seemed to permeate even at the top. The Vatican was also involved in financial matters which did not cast it in favourably. The Pope was said to have tried reform, but was said to have been rebuffed. Maybe he was just tired. Maybe God called him to step aside. We will never know. Joseph Ratzinger is retreating into a convent to do what he probably always wanted to do - be with God. Not be a CEO.

 

A CEO is what the papacy is increasingly turning to. The Vatican is a massive organization which needs to be managed just like any other organization. It deals with large sums of money. It deals with global affairs. It deals with thousands and thousands of "employees". It is challenged by globalization - the centre of the catholic world is increasingly no longer Rome, but Latin America. In short, it is facing what every other organization which deals with more earthly matters, faces.

 

It would be a pity for the Papacy to become a CEO's office, although that is the direction in which it is going. The world badly needs spiritual guidance. There is much moral failing in the world, and traditionally, it has been men of cloth who have given mankind, the moral steer.  You could argue that organized religion has done more harm than good - witness the atrocities that have been committed throughout human history in the name of religion. But that would be a one sided view. Religion has also brought great comfort. It has healed many a heart. It has shown the way to many a soul.

 

The world's major religions are in crisis. Islam seems to be driven in a number of directions. Hinduism has had its fair share of godmen and leaders who have fallen from their pedestal - some literally. TV evangelists and faith healers seem to abound. Money seems to have overwhelmed even the spiritual, much as it has done to the temporal.

 

Atheists may disagree with me that the fall of religion is not a bad thing. They may be right. But I am lost in an ocean of despair. Moral failings seem to abound. I am rocked by the tides of sorrow. I see much evil around me. I am not able to accept the value systems that are the norm today.  I am adrift in a frightening sea, searching for a beacon from a lighthouse.

 

Witness the betting going on as to who would be the next Pope. Apparently Canadian Marc Ouellet and Ghanaian Peter Turkson are favourites at odds of 7 to 2. Betting on a Pope ?

 

Papa, Latin for Pope,  pray for us. 

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What on earth is a KRA ?

I am in trouble because my KRA with CDSL consequent to having submitted some change of KYC, is apparently pending, which I have no recollection of. Therefore I am stuck with my DP who is quoting arcane SEBI rules to make my life miserable.

 

If you don't understand one word of all this, welcome to the club. I don't understand it either ! And I am supposed to know something of finance !!

 

This perfectly sums up the status of how consumer unfriendly the financial sector in India has become. Try doing anything - opening a bank account, or buying a mutual fund  or even changing your address. You will tear your hair in frustration. Such is the state of affairs.

 

This is all because Ramamritham and his political masters have , over the last five years, exclusively been framing rules for catching Kasab.  The starting assumption is that everybody is a Kasab unless they prove otherwise. Rules and procedures have become so complex that an honest simple  man has no chance of understanding, let alone complying.  No wonder that the percentage of the population which even has a bank account is miniscule - fat chance the RBI has of achieving financial inclusion. To understand why they are failing, all they have to do is go and try to open a bank account themselves.

 

I have a Passport Number, a Aaadhar Number, a PAN, a DIN, an IEC, a Cust ID, a DL No, a ST No. It appears that is not enough for Ramamritham. I now need a KRA.

 

Laws must not be framed for the law breaker. They have to be framed for the vast majority who will follow the law if given a chance. Yes, crooks must be caught, but it is even more important to make it simple for the 99% of the population who are not crooks.

 

A beautiful example of killing an entire industry is what they have done to Internet Cafes. In a country like India with a miniscule computer population, but  burgeoning educated class, you would expect a zillion internet cafes at every street corner. No chance. Have you wondered why ? This is what an idiot who wants to start an internet café has to do.

 

• Every cyber cafe owner has to register and obtain a  licence
• Every user who comes to the café has to prove his ID. 
• The cyber cafe owner has to maintain a log of every user, his ID, his photo, and sundry particulars
• The owner has also to maintain a log and submit the return of the log each month of
• History of websites accessed using computer resource at cyber cafe
• Logs of proxy server installed at cyber cafe
• Mail server logs
• Logs of network devices such as router, switches, systems etc. installed
  at cyber cafe
• Partitions of Cubicles inside the Cyber Cafe should not exceed four and half feet in height from the floor level. The screen of all computers shall face the common open space of the Cyber Cafe.
• Cyber Cafe owner must ensure that all the computers are equipped with    safety / filtering software so as to the avoid access to the websites relating to     pornography, obscenity, terrorism and other objectionable materials. Cyber Cafe shall take sufficient precautions to ensure that their computer resource are not utilized for any illegal activity.
• They will be visited and inspected every now and then to ensure that they are complying with rules (of course, those visiting are extremely honest and straightforward and there is no question of a bribe)

Now you know why there are no internet cafes to be found anywhere. I am yet to determine whether they need a KRA too !!

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Humanising Business Relationships

There is something about the world of business that dehumanises relationships. The other is seen usually as a competitor to be trampled, or a boss to be hated, or a subordinate to be kicked or a peer to be beaten. We often gripe at everybody and anybody around the water cooler/coffee machine/whatever. Office parties are largely gossip sessions where everybody trashes everybody.

 

I met her not so very long ago. She is a confident, consummate professional, very competent in her job. She is poised, articulate, easy to work with and with a ready smile. So it was easy to picture the typical upwardly mobile, confident business executive and deal with her exactly in that manner.

 

Quite by accident, I came to know of the tragedies she had been, and is, going  through.  Tragedies you would not wish on your worst enemy. But you could never ever guess from any of the professional interactions. She is, as I said, poised, articulate, easy to work with. But now that I know, I can relate to the small things, I should have noticed before, but didn't. Yes, she was, and is,  bearing it all with a courage I can only marvel at.

 

People who go through difficulties and tragedies have a remarkably different view of the business world. They are far more tolerant. They are not easily tempted by greed, jealously, impatience and anger - vices that are in small or large measure, endemic in corporate life.  They take victory with equanimity and defeat with grace. They seem to have an altogether different view of the world - a more mature and wiser view, if I dare suggest.

Those of us who are crushed by petty office defeats or exhilarated by a pyrrhic promotion would do well to pause and reflect. Does any of this matter in the larger scheme of things ? Why have we let our lives, and even our very being, be defined by the necessary, but mundane, goings on in the office. In ten years time, or even five, would anybody care ? 

 

This post is a plea to view others we come into contact in the business world as human beings. There is a human heart beating with emotions, with hopes, with sorrows,  and with all those cauldron of feelings that define us as a race. That is not Employee No XX Or Supplier YY we are talking to. That's a member of the homo sapiens species. They may have had a great day. Maybe they are at the peak of joy. Or maybe they are troubled. Maybe there is sorrow being borne.  Whatever; it would do us good to try and understand. Maybe just be that little bit kinder.

 

Meanwhile, I am rooting for the lady to win. Win with a capital W. But then she defines "winning" differently. I should really be rooting for her to win in the truly important things in life, and "win" where , and how, she would want to.

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Eyes Right

 There are times when you have to feel good about India. In the prevailing atmosphere of extreme negativity, it is easy to fall into the trap of despair. Patriotism may be the last refuge of the scoundrel (no thanks Samuel Johnson), but it has its uses and I don't mind being a scoundrel. The Republic Day parade is one such occasion, to feel good.

I know very few watch the parade these days, but it is an eminently watchable spectacle. Other countries put on a show like this - the Bastille Day parade in France and the Victory Day parade in Russia, being the more prominent. But the Indian parade is extremely impressive and can raise goose pimples, especially if you can understand the honour and significance of it.

It all begins with the laying of the wreath at the Amar Jawan Jyothi - the tomb of the Unknown Soldier and the sounding of the Last Post - a tribute to the fallen. The Parade itself is rich in tradition. The President's bodyguard gives the order for the National Salute and you cannot but help feel a lump in the throat as the National Anthem in played. After the Parade Commanders, come the living recipients of the Param Vir Chakra and the Ashok Chakra - India's highest gallantry medals.  This year it was nice to see all the three living PVC holders in the parade - Subedar Major Bana Singh, Naik Subedar Yogendra Singh Yadav and Havaldar Sanjay Kumar. The 61st cavalry often leads out the marching contingents - this is probably the last Cavalry regiment anywhere in the world ; old traditions kept alive.  The impeccably turned out Army contingents lead the parade - this year the famous Maratha Light Infantry, the Dogra Regiment, the Kumaon Regiment, the Garhwal Rifles were all there - regiments with traditions going back 200 years. The Air Force contingent had a surprise with Flight Lieutenant Heena Pore leading - probably the first time a lady officer was the commandant . When the camera cut to probably her family wildly cheering, you could not have failed to be moved. Contingents vie with each other to win the best marching contingent award. To me the highlight is often the NCC boys and the NCC Girls contingent ; when she gives the call to salute the President, you can't quell the surge of emotion.

I normally discount the cultural shows that follow ; the military parade is the highlight. Its is an honour to march - if you wish to know how much of an honour it is and how much of training and selection precedes it, read this lovely account by Smriti Rao.

The dampener is the extremely poor coverage by Doordarshan. For a lesson on how not to cover an occasion of such grandeur, turn to Doordarshan. They have to cut all the time to show the faces of sundry VIPs - this being Delhi after all. How can you cut away, when the commandant's deep bass voice is giving the command for the salute. They couldn't even get the national anthem right - there was static and blackouts. Yuk !

But despite Doordarshan, this is an event that can make riveting viewing. You can watch it here, if you like.

Which is why, I say - I am sorry Colleen Braganza - I simply cannot stomach your article in the DNA.  There is a time to protest and make your voice heard. There is also a time to honour and cherish.

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Out of the mouths of babes ......

Isn't that a brilliant question.  This is a question asked by 7 year old Loulou.

 

This is part of Facebook initiative by the Holland based banking giant ING . Its is part of their recruitment portal called ING Careers and this idea is called Next Generation banking. In it they are asking children to ask simple questions and for prospective employees who wish to join ING to answer them.

 

Here are some of the answers

 

• We need banks to keep money moving and safe
• Banks are also a safe place to put your money and not only that but the bank will even make sure the amount you gave them increases over time by using it in different businesses
• We need banks for your money:
  1. To be safe - Your piggy bank can get lost, stolen or empty.
  2. To grow - Do nothing and see your money grow each year because of interest.
• So banks were a place you could keep your money safe and also get some extra money if you agreed to pay it back soon
• So you see banks are there to help people. They have a lot of helpful ideas to make life easier for everyone
• We need banks because there are two kinds of people, people who has money and want their money to be in a safe place where they could get it anytime they want and people who wants money to make things and sell them in order to make more money.
• To keep it very simple. Banks make our life easy

 

------- And so on and so on.

All perfectly true of course. The problem is that this is no longer what banks mostly do.  If senior bankers read this and reflect, perhaps some blinding truths may strike them.

 

Maybe every industry must do something similar and try and explain their reason for existence to children. They may find themselves squirming and very uncomfortable.

 

As it is said in Psalm  8:2 , "Out of the mouth of babies and sucklings hast thou established strength ......... "


PS : This blogger had to hold his nose and go into Facebook to get the material for this post. He has quickly exited and is somewhat affected even by this short experience. He won't be going anywhere there in a hurry !

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The Eighth Deadly Sin

Alongside  wrath, greed, sloth, pride, lust, envy and gluttony - the seven deadly sins - should surely be added "money". For it is now proving to be a deadly sin even in the Vatican.

News came out on Wednesday that all forms of plastic money - ATM cards, credit cards, debit cards, etc have stopped functioning in the Vatican. So if you want to visit the Sistine Chapel, you have to fork out cash for admission - cannot wave your plastic.

This has happened because the Bank of Italy (Italy's Central Bank) has suspended all electronic operations by banks inside the Vatican in exasperation at the Vatican's continued inability to follow anti money laundering and anti terrorist financing regulations. This has been going on for a long time - the Vatican does not meet the anti money laundering requirements that all countries have to meet and has not been able to set this right for years.

Part of the problem is "Ramamrithamisque". Regulations demand all sorts of KYC forms and it is quite likely that the Holy Fathers have not been rigorous enough in filling 74,432 forms - their minds being, hopefully, absorbed with higher matters. Here, my sympathies are with the Vatican.

But the other half of the problem is serious. The Vatican, as indeed many successful religious organisations are, is a huge business enterprise. In this, they must follow laws that seek to curb international crime. But they usually turn a blind eye to where their money comes from , and this is an unpardonable eighth deadly sin.

This problem is not unique to the Vatican alone. Every religious organisation, I dare speculate, would fail the test of anti money laundering. Much of their finances are murky, shady, and accounting rigour, transparency and tightness of control is conspicuous by their absence.  If you stretch the argument, is it right for the Tirupathi temple,to accept donations from every scoundrel who goes and makes an offering of a fraction of his ill gotten wealth as appeasement ?

Religious organisations have to be whiter than white. These days, they are as much business organisations as religious ones, commanding large capital and cash flows. Excuses that they are solely concerned with matters temporal, won't fly. They must meet every test of international law, as all of us are expected to. Failing which they must be blacklisted, as the Bank of Italy has tried to in a small way.

"In God we trust" cannot be an empty slogan.

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