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Philanthropy and The Passion of Bill Gates

Forbes 400 Summit on Philanthropy In June 2015, about 200 billionaires, outstanding philanthropists and social entrepreneur-game changers convened in New York for the annual Forbes 400 Summit on Philanthropy. The high spot of the event was the presentation of lifetime accomplishment awards to Bill and Melinda Gates, and Paul Farmer, cofounder of Partners in Health. The invention or development should be of great significance scientifically, should be agenda setting, and undeniably must have had a chief influence, both in terms of the development of the field and its applications to advance mankind. The rule is that that the accomplishment should not have been marked by another major prize. This means that the reward should not come too long after the invention, discovery or development. This is why our winners occasionally receive the Nobel Prize and not the other way around.

Paul Farmer, Partners in Health Recalling Bill Gates’s passion for philanthropy and his ability to focus on the task at hand, Paul Farmer reminisced,

I was traveling with Bill once in Africa and we decided to go up to the top of this mountain to see the gorillas up close. We’re sitting there, and there’s this beautiful silver-backed gorilla not 5 feet from Bill Gates. And he turns around to me and goes, “Now, where were we in talking about this tuberculosis vaccine?”

Warren Buffett and Bill Gates Philanthropy In a planet with many celebrities but few heroes, Bill Gates has reached superhuman status by pledging much of his massive fortune to the improvement of global equity. He and his wife have directed the causes of health disparities between rich and poor, and their foundation has become a mainspring in international aid and in research on AIDS and other diseases. In June, the Bill and Melinda Gates Foundation’s likely influence on global health was augmented when Warren Buffett, the world’s second-richest man, broadcast plans to give most of his fortune to the foundation established by the richest one. At the same event, Warren Buffett noted the following on Bill and Melinda Gates:

When I was deciding how to give away my money nine years ago, I reached out to Bill and Melinda Gates and struck the kind of deal I usually make: they do all of the work and I sit back and watch. I’ve studied this country’s great philanthropists: Rockefeller, Carnegie. Henry Ford, you name them. None of them ever poured remotely the amount of personal time, effort, and brainpower into their foundations that Bill and Melinda have.

When the Buffett gift was announced, some observers expressed concern that aid from other sources would decline because the Gates Foundation would be perceived as rich enough to solve the developing world’s health problems.

Philanthropy and The Passion of Bill Gates Venture philanthropy has thrived general philanthropy as a controlling principle in concept and in language. The conversion further blurs the line between the private and the public. Foundations have moved away from setting general humanitarian goals and making grants to outside groups for research and for achievement programs in keeping with the foundation’s general purposes. Foundations today set more specific policy goals and then either create or seek out establishments that will carry out projects for which the significances are set by the foundation. Some of the foundations no longer consent unsolicited applications. Instead of a listing of grants, they are now titled a collection of “investments” directed toward achieving a policy goal. The foundations reinforce research that “aligns with our investment strategy.” The Gates Foundation speaks about its “program-related investments” when speaking of its payments in chase of its aims. Accepting the award, Bill Gates noted:

I have had a lot of fun jobs, but none of them has been as fun as partnering with Melinda and seeing real results. My favorite graph is the one that shows childhood death has been cut in half in 25 years, and my favorite prediction is that we’ll cut it in half again.

I see philanthropy as the venture capital tor government functions. There are certain things the private sector will never fund like fighting malaria or fixing primary health systems, because there is no profit model there. Governments want to fund those things, but it’s difficult for them to work on really long-term issues and to attract the right scientists to solve those problems. Philanthropy can take the risks, do the research and development, and fund the pilot programs to tackle some of the most critical issues in the world.

The late 19th century brought the Gilded Age, with riches created by inventions and opportunities. In the 20th century, capitalism was directed by the managerial revolution that fashioned huge corporations and personal fortunes but also repressed innovation, limited new opportunities, and widened the gap in the distribution of wealth. Executive capitalism is now being replaced by the entrepreneurial capitalism stage, a second Gilded Age, which Acs identifies as the New American Capitalism. Entrepreneurial capitalism necessitates a philanthropy (as represented by Warren Buffett and Andrew Carnegie) that ploughs fortunes into society to offer opportunities for entrepreneurs and capital for entrepreneurial activities such as business incubators. Corporate capitalism reinvigorated traditionally manly rhetoric and actions, from paternalism and self-control to the Great Father and the warrior ethos. Abstracted loyalties to gender and race intensified, and gestures of masculinization saturated American culture. Nor have they slackened much in or own post-millennial atmosphere of white male pathos and bathos. Yet it’s not enough to say that manhood developed new forms of contestation and patriarchal performativity as men’s work alienated their gender codes from their gendered bodies. The rise of large-scale organizations threatened manhood’s usefulness.

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Posted in Philosophy and Wisdom

Bill Gates on Malcolm Gladwell’s 10,000 Hour Rule

Malcoln Gladwell It’s a tempting proposal: if you practice anything for 10,000 hours, then you will become world class. In 1993, scientist Anders Ericsson learned of a group of psychologists in Berlin who were researching violin players found that, by age 20, the leading performers had averaged in excess of 10,000 hours of practice each. Less able performers, in the meantime, clocked up just 4,000 hours. Malcolm Gladwell popularized the notion further in his book Outliers: The Story of Success.

In study after study, of composers, basketball players, fiction writers, ice-skaters, concert pianists, chess players, master criminals,” writes the neurologist Daniel Levitin, “this number comes up again and again. Ten thousand hours is equivalent to roughly three hours a day, or 20 hours a week, of practice over 10 years… No one has yet found a case in which true world-class expertise was accomplished in less time. It seems that it takes the brain this long to assimilate all that it needs to know to achieve true mastery.

Gladwell applied the concept to Bill Joy, Bill Gates, and the Beatles, who sharpened their musical know-how in performance at Hamburg’s strip clubs. Gladwell says:

The Beatles ended up travelling to Hamburg five times between 1960 and the end of 1962. On the first trip, they played 106 nights, of five or more hours a night. Their second trip they played 92 times. Their third trip they played 48 times, for a total of 172 hours on stage. The last two Hamburg stints, in November and December 1962, involved another 90 hours of performing. All told, they performed for 270 nights in just over a year and a half. By the time they had their first burst of success in 1964, they had performed live an estimated 1,200 times, which is extraordinary. Most bands today don’t perform 1,200 times in their entire careers. The Hamburg crucible is what set the Beatles apart.

'Outliers' by Malcoln Gladwell (ISBN 0316017922) Coined by Florida State psychologist Anders Ericsson and made famous by Malcolm Gladwell in his book Outliers, the 10,000 hour rule reflects the belief that becoming a superlative athlete or performer rests on a long period of hard work rather than “innate ability” or talent. As stated by Malcolm Gladwell’s famous 10,000-hour rule, genuine success only comes to people who are willing to put in a great many hours to become first-class at something they value. Whether it involves learning a new piece of equipment, a new language, or developing a craft, being able to cope with setbacks and stay focused on goals regardless of how far-flung they seem. And so the importance of resolve and steadiness in success.

Bill Gates did not only have an propensity for creating software, he also had just about exceptional access as a schoolboy to a mainframe computer that the parents’ association of his local school invested in, in 1968. He got to it in eighth grade before just about anyone else in the world. Correspondingly the Beatles’ genius for melody did not come ready made. They developed it while singing in Hamburg in the early Sixties, at all-night strip clubs. In those years they dedicated more time to pop music than any of their peers. The same could be said for Mozart, or Tiger Woods. They had capability, sure enough, but they also had extraordinary family circumstances that allowed them a reasonable advantage at a very early age. They put the hours in first.

Extraordinary success depends on talent, hard work, and being in the right place at the right time, among other things. In Outliers, Gladwell contends that, to truly master any skill, leaning on various pieces of research, requires about 10,000 concentrated hours. If you can get those hours in early, and be in a position to exploit them, then you are an outlier.

When asked, “What do you think of Malcolm Gladwell’s theory that the years 1953 to 1955 were the perfect ones in which to be born for the computer revolution?” by his father William H. Gates Sr., Bill Gates reponds:

His book makes a lot of great points … that is that in all success stories there are significant elements of luck and tiny … I wasn’t the only kid born between 1953 and 1955, but absolutely to be young and open-minded at a time when the microprocessor was invented … in my case have a friend Paul Allen who was more open-minded about hardware type things and literally brought me the obscure article to talk about that first microprocessor and said you know this is going to improve exponentially … what does that mean and I said well at that means it we can do anything we want and then he was … you know … bugging me the rest of the time every time there’d be a new microprocessor he said can we do something yet and when we were in high school that can happen … so he came back to possible good job there and actually the microprocessor that was finally good enough came out in early 1975 and that’s why I i dropped out … so the timing was pretty important you know why didn’t older people see it … they weren’t this open open minded … they didn’t think about software is the key ingredient … now a lot of kids started doing software and … it’s not if somebody reads the book to say that if you spend 10,000 hours doing something you’ll be super good at it I don’t think that’quite as simple as that what you do is you do about 50 hours and ninety percent drop out because they don’t like it or they’re not good … you do another 50 hours and ninety percent drop out … so there’s these constant cycles and you do have to be lucky enough but also fanatical enough to keep going and so the person makes it to 10,000 hours is not just somebody has done it for 10,000 hours there’s somebody who chosen and been chosen in many different times and so all these magical things came together including who I know and that time … and i think you know that’s very important … when you look at somebody who’s good and say could I do it like them … they’ve gone through so many cycles that it may fool you that you know yes yes you could with the with the right luck, imagination, and and some some talent.

Bill Gates responds to Malcolm Gladwell’s theory that it takes 10,000 hours of deliberate practice to master a skill. Apart from acknowledging luck, timing and an open mind, Gates suggests that a successful person survives many cycles of attrition to make it to 10,000 hours of experience. “You do have to be lucky enough, but also fanatical enough to keep going,” explains Gates.

Unfortunately, a Princeton study, which analyzed 88 studies, established that practice accounted for just a 12% variation in performance.

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Posted in Education and Career Mental Models and Psychology

Warren Buffett on Taking a Few Big Swings

Warren Buffett on taking a big swing from a 1998 Q & A (video here) that he and Bill Gates did with students at the University of Washington (via valuewalk.com):

A few things have worked out very well [for me]. And the nice thing about the investment business is that you don’t need very many. You’ll see plenty of times when you get chances to do things that just shout at you. And the thing you have to do is, when that happens, you have to take a big swing. That is no time to be reading a book on the theory of diversification …. When you find something where you know the business is within your circle of competence, you understand it, the price is right, the people are right—then you take your thumb out of your mouth and you barrel in.

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Posted in Investing and Finance

Review of N.R. Narayana Murthy’s Visionary Book, ‘A Better India: A Better World’

A Better India- A Better World is a stimulating book by an important business leader. When an Indian assistant first lent it to me, I wasn’t excited to read it but felt necessitated. I was very much completely astounded. N.R. Narayana Murthy, the founder and chairperson of Infosys organizes a rather comprehensible and positive vision to the world according to himself. If only many more business leaders thought like him, one might even feel tempted by this thing called “compassionate capitalism.” Narayana Murthy has thought much about India, his homeland, and its contradictions.

'Better India: A Better World' by N.R. Narayana Murthy (ISBN 0143068571)

If the eyes of all men were naturally jaundiced, all white objects would appear uniformly yellow. In the introduction to A Better India- A Better World, Narayana Murthy outlines,

The enigma of India is that our progress in higher education and in science and technology has not been sufficient to take 350 million Indians out of illiteracy. It is difficult to imagine that 318 million people in the country do not have access to safe drinking water and 250 million people do not have access to basic medical care. Why should 630 million people not have access to acceptable sanitation facilities even in 2009? When you see world-class supermarkets and food chains in our towns, and when our urban youngsters gloat over the choice of toppings on their pizzas, why should 51 per cent of the children in the country be undernourished? When India is among the largest producers of engineers and scientists in the world, why should 52 per cent of the primary schools have only one teacher for every two classes? When our politicians and bureaucrats live in huge houses in Lutyens’ Delhi and the state capitals, our corporate leaders splurge money on mansions, yachts and planes, and our urban youth revel in their latest sport shoes, why should 300 million Indians live on hardly Rs 545 per month (US$10 at current exchange rate), barely sufficient to manage two meals a day, with little or no money left for schooling, clothes, shelter and medicine?

His starting point is Franklin D. Roosevelt’s “four freedoms”—freedom of speech and expression, freedom of religion, freedom from want, and freedom from fear. He later elaborates on what a “civilized society” entails: “a society where everybody has equal opportunity to better his or her life; where every child has food, shelter, healthcare, and education; a society where duties come before rights; where each generation makes sacrifices to make life better for the next generation.” Obviously, many of these tenets are increasingly not present in today’s USA and, worse; many Americans on the right would dispute these principles as smacking of socialism. In this case, an effect has been given for a cause.

Could we be certain that the admeasurements of these two different meridians were made without error, this would, undoubtedly, be a demonstrative proof of the irregularity of the earth’s figure. Narayana Murthy is a well read and well-travelled, learned man who clearly thinks a lot about societal issues. In the introduction, his acknowledged three books that have influenced him deeply: The Protestant Ethic and the Spirit of Capitalism by Max Weber; My Experiments with Truth by Mahatma Gandhi; and Peau Noire, Masques Blancs by Franz Fanon. This rather eclectic selection shows the breadth of his reading and attests to an open mind. He builds his own philosophy on these disparate strains of thought, emphasizing the importance of values and leadership. He sets out early in the book that, “I do not know of any community—a company, an institution or a nation—that has achieved success without a long journey of aspiration, hard work, commitment, focus, hope, confidence, humility and sacrifice”. This question cannot be resolved exactly, without the author’s help. The first time he was restored, he thought he actually touched whatever he saw; but by degrees his experience corrected his numberless mistakes.

His student years in France in the 1970s were very important in forming his thinking. In the first chapter, a lecture to students, he compares France to India for its civil-mindedness: “In France, everybody acted as if it was their job to discuss, debate and quickly act on improving public facilities. In India, we discuss debate and behave as if the improvement of any public facility is not our task, and consequently, do not act at all.” His deduction: being a developing country is a mindset. Here he breaks clear of the Left, placing the onus on the individual, as well as the society as a whole, to take responsibility for its own destiny. He tells a story of how he lost any compassion for the Left after having been imprisoned by Bulgarian authorities when traveling back from Paris to India in 1974.

The next event that left an indelible mark on me occurred in 1974. The location: Nis, a border town between former Yugoslavia, now Serbia, and Bulgaria. I was hitchhiking from Paris back to Mysore, India, my home town.

By the time a kind driver dropped me at Nis railway station at 9 p.m. on a Saturday night, the restaurant was closed. So was the bank the next morning, and I could not eat because I had no local money. I slept on the railway platform until 8.30 pm in the night when the Sofia Express pulled in.

The only passengers in my compartment were a girl and a boy. I struck a conversation in French with the young girl. She talked about the travails of living in an iron curtain country, until we were roughly interrupted by some policemen who, I later gathered, were summoned by the young man who thought we were criticising the communist government of Bulgaria.

The girl was led away; my backpack and sleeping bag were confiscated. I was dragged along the platform into a small 8×8 foot room with a cold stone floor and a hole in one corner by way of toilet facilities. I was held in that bitterly cold room without food or water for over 72 hours.

I had lost all hope of ever seeing the outside world again, when the door opened. I was again dragged out unceremoniously, locked up in the guard’s compartment on a departing freight train and told that I would be released 20 hours later upon reaching Istanbul. The guard’s final words still ring in my ears — “You are from a friendly country called India and that is why we are letting you go!”

The journey to Istanbul was lonely, and I was starving. This long, lonely, cold journey forced me to deeply rethink my convictions about Communism. Early on a dark Thursday morning, after being hungry for 108 hours, I was purged of any last vestiges of affinity for the Left.

I concluded that entrepreneurship, resulting in large-scale job creation, was the only viable mechanism for eradicating poverty in societies.

Deep in my heart, I always thank the Bulgarian guards for transforming me from a confused Leftist into a determined, compassionate capitalist! Inevitably, this sequence of events led to the eventual founding of Infosys in 1981.

Cofounder and executive chairman N.R. Narayana Murthy came out of retirement in 2013 to help right the Infosys ship. His return resulted in improved financial performance, although it has been marked by numerous high-profile executive resignations. Murthy again stepped down and re-entered retirement to make way for CEO Vishal Sikka in August 2014. Microsoft Founder Bill Gates said, “Narayana Murthy overcame many obstacles and demonstrated that is possible to create a world-class, values-driven company in India. Through his vision and leadership Murthy sparked a wave of innovation and entrepreneurship that changed the way we view ourselves and how the world views India.”

Review of N.R. Narayana Murthy's Visionary Book, 'A Better India- A Better World' This is a collection of 38 essays and speeches given at a variety of fora during the 2000s and selected for the book by the author himself. They are divided into sections:

  • Address to students;
  • Values;
  • Important national issues;
  • Education;
  • Leadership challenges;
  • Corporate and public governance;
  • Corporate social responsibility and philanthropy;
  • Entrepreneurship;
  • Globalization;
  • three short chapters on Infosys.

In such a collection, it is inevitable that there are overlaps between the chapters and many recurrent themes. I’ll pick a few themes that I found interesting here below.

He addresses students in a variety of schools, ranging from prestigious institutions like INSEAD, Indian Institute of Technology, IESE Business School in Barcelona and NYU, to various other universities in India. He exhorts his values: “You must believe in and act according to the principle that putting public interest ahead of private interest in the short term will be better for your private concerns in the long run.” … “Ego, vanity, and contempt for other people have clouded our minds for thousands of years and impeded our progress. Humility is scarce in this country.” … “No county that has shunned merit has succeeded in solving its problems.” … “The reason for the lack of progress in many developing nations is not the paucity of resources but the lack of management talent and professionalism.” The winds of the temperate zone are composed of the eddies of these two united.

Narayana Murthy is a fan of globalization and refers to the “global bazaar” and Thomas Friedman’s “flat world” in several places. In this context, he calls for “an environment of tolerance and respect for multi-culturalism.” He sees global warming and environmental degradation as major threats and sees that the answers must lie in global cooperation: “The solution is not to force developing nations to forgo what the developed world has enjoyed for over a century. It is to come together as one planet and use innovation in technology to produce alternate energy solutions and reduction of carbon emissions.” His thinking reflects the intergenerational equity perspective embedded in the original definition of sustainable development: “After all, this is the only planet we have. Conduct yourself as if you have borrowed it from the next generation. Remember that you will have to give it back to them in good shape.” The time of feeling the pulse is in a morning, some time after getting up, and before reduction of carbon emissions.

A Better India- A Better World is also very critical of laissez-faire capitalism, a theme that resonates throughout the book: “Unfortunately, the greed of several corporate leaders, the meltdown of Wall Street, the increasing differences between the salaries of CEOs and ordinary workers, and the unbelievable severance compensation paid to failed CEOs have called into question whether capitalism is indeed a solution for the benefit of all, or if it is an instrument for a few cunning people to hoodwink a large mass of gullible middle-class and poor people. Never before in the history of capitalism have so few people brought so much misery to so many.” His views of how to manage a company are in line with his broader beliefs: “The only way you can save capitalism and bring it back to its shining glory is by conducting yourselves as decent, honest, fair, diligent, and socially conscious business leaders. In every action of yours, you have to ask how it will make the lowest level worker in your corporation and the poorest person in your society better. You have to learn to put the interest of the community—your corporation, your society, your nation and this planet—before your own interest.” In light of these issues, Infosys has launched a number of initiatives to improve its performance. The company has some way to go before rectifying its position, but a number of signs are promising, with revenue growth, margins, client mining, and employee attrition improving. Again emphasizing the need for sacrifice, he states that, “(T) to succeed in these days of globalization, global warming and laissez-faire capitalism, every worker in your corporation will have to accept tremendous sacrifices in the short term and hope that goodness will, indeed, succeed in the long term and make life better for every one of them.” Certainly not the thinking en vogue on this continent!

Review of N.R. Narayana Murthy's Visionary Book, 'A Better India- A Better World' Narayana Murthy is also rather harsh on India. In a chapter entitled “What Can We Learn from the West,” he chastises his own nation for faulty values: “Indian society has, for over a thousand years, put loyalty to family ahead of loyalty to society.” … “Unfortunately, our attitude towards family life is not reflected in our attitude towards the community. From littering the streets to corruption to violating contractual obligations, we are apathetic to the community good.” … “Apathy in addressing community matters has held us back from making progress which is otherwise within our reach. We see serious problems around us but do not try to solve them. We behave as if the problems do not exist or as if they belong to someone else.” He continues, “Our intellectual arrogance has also not helped our society. I have travelled extensively and, in my experience, have not come across another society where people are as contemptuous of better societies as we are, with as little progress as we have achieved.” He identifies things that India should learn from the West, including accountability, dignity of labor (“everybody in India wants to be a thinker and not a doer”), and professionalism (punctuality, respect for other people’s time, respecting contractual obligations), concluding that “the most important attribute of a progressive society is respect for others who have accomplished more than they themselves have, and the willingness to learn from them.” The conduct of the appetite regulates the health; and this is not enough regarded.

Elaborating on individual responsibilities, he adds one more: discipline. “There are several ingredients for national development—natural resources, human resources, leadership, and finally, discipline.” … “The utter lack of discipline exhibited by our people is rendering these other three powerful factors ineffective for fast-paced economic growth. We see umpteen examples of undisciplined behavior around us every day. What is even sadder is that this behavior has become the norm even among the powerful and the elite.” … “Discipline is about complying with the agreed protocols, norms, desirable practices, regulations and the laws of the land designed to improve the performance of individuals and societies. Discipline is the bedrock of individual development, community development, and national development.” In this category, Narayana Murthy includes aspects, such as lack of discipline in thought, or intellectual dishonesty (objectivity to focus on outcomes and results, rather than politics or focus on caste and religion; corruption). To achieve discipline, India needs role models (honest, accountable, disciplined leaders committed to change), swift and harsh punishment of offenders, transparency, political reform, and an improved bureaucracy. Manmohan Singh, former Prime Minister of India, wrote, “Narayana Murthy is a role model for millions of Indians. An iconic figure in the country, he is widely respected and looked up not only for his business leadership but also for his ethics and personal conduct. He represents the face of the new, resurgent India to the world.”

Review of N.R. Narayana Murthy's Visionary Book, 'A Better India- A Better World' The part focusing on important national issues considers a wide range, including the role of population in economic development in India. Talking about population growth as a strain to development risks being attacked from both the Left and the Right these days, but Narayana Murthy barges right into the issues. He highlights the need for “good human capital” but also warns “a failure to stabilize India’s population will have significant implications for the future of India’s economy” and that “high population densities have also led to overloaded systems and infrastructure in urban areas.” He links the population debate to environment and resources, in particular energy demand, noting how the combined demands from India and China will put pressure on world resources: “The rapid growth in emerging economies cannot be sustained in the face of mounting environmental deterioration and resource depletion.” He sees a clear role for the government, which must “focus on conservation-friendly policies. For example, subsidies on conventional fuel make it difficult for renewable energy sources to compete and should be removed at least for rich and middle-class people.” … “The government can play a key role as a regulator in making Indian industry environmentally responsible.” Would someone please tell that to the politicians in Washington, DC?

The fourth theme is a cornerstone of the Indian spiritual tradition: self-knowledge. Indeed, the highest form of knowledge, it is said, is self-knowledge. I believe this greater awareness and knowledge of oneself is what ultimately helps develop a more grounded belief in oneself, courage, determination, and, above all, humility, all qualities which enable one to wear one’s success with dignity and grace.

So, how to deal with the issue of excessive population growth? Well, there is the need to meet unmet need of contraception and the issue of how Indian states have failed to implement family planning programs. Narayana Murthy recognizes that there’s been a significant decrease in population growth in certain southern states, such as Kerala, Tamil Nadu, Karnataka and Andhra Pradesh, where “state governments here focused on human development, opened up local economies, and improved social services … Rising female literacy in these states contributed to the success of family planning … A focus on women’s and children’s health also contribute to population control.” He concludes, in line with what is also known from empirical literature: “human development goes hand in hand with lower population growth.” What he doesn”t mention is that states like Kerala have for decades been run by parties from the Left.

A Better India- A Better World chapter “Framework for Urban Planning in Modern India” also recognizes the importance of planning but calls for “radical, immediate reform in the planning and management of our cities” that “must adequately address the shortage of low-cost housing.”

Review of N.R. Narayana Murthy's Visionary Book, 'A Better India- A Better World' Moving to corporate governance, he extols the virtues of good corporate governance to enhance corporate performance while ensuring that corporations conform to the interests of investors and society by “creating fairness, transparency, and accountability in business activities among employees, management and the board.” Infosys has many long-standing client relationships, a well-managed global delivery model, and a comprehensive services portfolio. “The abuse of corporate power results from incentives within firms that encourage a culture of corruption. … Clearly, good governance requires a mindset within the corporation which integrates the corporate code of ethics into the day-to-day activities of its managers and workers.” “Corporate leaders have to create a climate of opinion that values respectability in addition to wealth.” To recapitulate all that has been said upon the subject of compassionate capitalism: long continued tones are nothing more than a repetition of the same stroke and tone. Like the two halves of an ellipse, with their ends turned the contrary way.

So what is the “compassionate capitalism” that Narayana Murthy longs for? As said by him, it is about “bringing the power of capitalism to the benefit of large masses. It is about combining the power of mind and heart; the good of capitalism and socialism … The benefits of growth have to be distributed widely.” While this does not exist anyplace, Narayana Murthy does pay some respect to what he calls the “Swedish model.”

Review of N.R. Narayana Murthy's Visionary Book, 'A Better India- A Better World' N.R. Narayana Murthy returns to the leitmotif of the lack of credibility of capitalism today: “Greedy behavior from corporate leaders has strengthened public conviction that free markets are tools for the rich to get richer at the expense of the welfare of the general public.” Lest capitalism is rejected as the most accepted model for growth in developing countries and by the alienated poor, the business leaders have to regain the trust of society and abide the value system of the community where they operate. Touching on a debate that rages in both America and Europe, Narayana Murthy weighs in on executive compensation: “Business leaders should shun excessive managerial compensation. Managerial remuneration should be based on three principles—fairness with respect to the compensation of other employees; transparency with respect to shareholders and employees; and accountability with respect to linking compensation with corporate performance … We have to create a climate of opinion which says respect is more important than wealth.” Certainly. A number of high-profile client-facing executive departures could negatively affect the firm’s standing with legacy clients.

At the end of A Better India- A Better World, this rather prescient and socially aware business leader sees globalization in an virtually absolutely favorable light, concluding that “we need a flat world because is spreads the American beliefs in free trade to the rest of the world; it benefits consumers from all over the globe; it helps create a world with better opportunities for everyone; and, finally, it brings global trade into focus, shunning terrorism and creating a more peaceful world”. Let us for a moment compare this universe to a palace, erected by the divine Architect, and the unphilosophical spectator to a foreigner, who sees but the external part of the building. “Humble and self-effacing, Murthy is known to fly economy class and lives in a modest home in Bangalore—proof, say his fans, that you can combine business success with Gandhian humility.” said Time magazine of Narayana Murthy. Murthy, [says the Time magazine], has not sold his soul for money and success. One of country’s most admired men, he is vigilant about his employees’well-being, granting stock options, building exercise facilities and spreading values as much as wealth.

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Posted in Management and Leadership Software and Programming

Advice to Entrepreneurs: Microsoft’s Bill Gates on Overcoming the Feeling of Risk

Entrepreneurs are not necessarily more tolerant to risk and the possibility of failure than the rest of us. They simply define risk differently. Most entrepreneurs tend to prioritize incessantly and can afford to risk a few outputs for an outcome they believe in. Here is advice from Bill Gates on overcoming the feeling of risk. Bill Gates is the cofounder, chairman, and former CEO of Microsoft, the software and hardware company.

Bill Gates, cofounder, chairman, and former CEO of Microsoft If you’re going to start a company, it takes so much energy that you’d better overcome your feeling of risk. Also, I don’t think that you should necessarily start a company at the beginning of your career. There’s a lot to be said for working in a company and learning how they do things first.

On his management style: I do know that if people say things that are wrong, others shouldn’t just sit there silently. They should speak. Great organizations demand a high level of commitment by the people involved.

'World Changers: 25 Entrepreneurs Who Changed Business as We Knew It' by John A. Byrne (ISBN 1591844509) Source: “World Changers: 25 Entrepreneurs Who Changed Business as We Knew It” by John A. Byrne. John Byrne, a former editor at BusinessWeek and Fast Company magazines, co-authored Jack: Straight from the Gut with Jack Welch, former General Electric Chairman and CEO. In “World Changers,” John Byrne presents potent advice on entrepreneurism and fascinating insights into what it takes to succeed as entrepreneurs from successful business luminaries such as Apple’s Steve Jobs to HARPO’s Oprah, from India’s Ratan Tata to Brazil’s Eike Batista. John Byrne concludes that the three distinguishing characteristics of successful entrepreneurism are the opportunistic mindset, an ability to embrace risk, and sense of independence, control and urgency.

Recommended Reading

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Posted in Business and Strategy Leaders and Innovators Management and Leadership