JANUARY 5, 2003
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Two Slab
Income Tax

The Kelkar panel, constituted to reform India's direct taxes, has reopened the tax debate-and at the individual level as well. Should we simplify the thicket of codifications that pass as tax laws? And why should tax calculations be so complicated as to necessitate tax lawyers? Should we move to a two-slab system? A report.


Dying Differentiation
This festive season has seen discount upon discount. Prices that seemed too low to go any lower have fallen further. Brands that prided themselves in price consistency (among the consistent values that constitute a brand) have abandoned their resistance. Whatever happened to good old brand differentiation?

More Net Specials
Business Today,  December 22, 2002
 
 
The Road Warrior Lives

Never mind the pricey video-conferencing facility and the virtual organisation. The smarter CEOs still believe in doing business face to face.

I am sorry. He's travelling." that's the standard reply I get when I call up Aditya Vij's office in New Delhi. "You can try him sometime next week," suggests the voice at the other end of the phone. "Next month is more likely," I mumble to myself. The President and Managing Director of General Motors India collects frequent flyer miles like they are going out fashion. The 44-year-old Vij travels for more than 15 days a month. He is either away in Baroda, where GMI has its manufacturing facilities, or he is travelling to meet dealers or vendors. If nothing else, he travels to schmooze at industry dos all over the country.

Forget the time and energy needed to keep up a punishing schedule like that month after month. All I want to know is why does he do it? After all, Vij has the option of staying put in his corner room and still staying in touch with the gm network worldwide. He has at his finger tips everything that a wired CEO could ask for. The internet, teleconferencing, (Microsoft) Net meetings, videoconferencing, email and fax. So just why does Vij make life so difficult for him? "F-T-F (face-to-face) meetings are still the most effective when it comes to business," comes the reply.

It's Better In Person

Vij isn't the only road warrior CEO on our map. Sunil Mittal of Bharti reportedly logs 15-16 days of travel a month. Coke's Alex von Behr is known to travel to the remotest of Indian villages to make sure that the corner shops are happy, have the Coke billboards in place and are supporting his brand.

Arjun Malhotra, the Chief Executive Officer of TechSpan, concentrates his travel on TechSpan offices in the US East Coast and India. His travel is scheduled around business planning meets, quarterly sales meets, employee meets, senior management reviews, meetings with customers and prospects, and such. He also spends time visiting customers at these locations as well as at other locations. "At this time with the economic slowdown, I think it is important to be more and more in front of your customers telling them that the organisation and you are there for them if they need you", explains Malhotra.

Indeed. Ask any good CEO and he'll tell you that face-to-face meetings have several advantages. They encourage team work, create a sense of urgency, and keep the General better informed of the developments that are taking place amongst his army and in the empire. Ground level experience is more important to work out business strategies. "When we were working on a really big project, the customer wanted to be able to look me in the eye and feel reassured that 'yes, this man can do it'," points out Jerry Rao, CEO, Mphasis BFL. Rao travels to Mumbai and Bangalore once a week, to the US six times a year, stops by in Europe two out of those six times and visits the Far East at least once a year. Apart from his customers, he spends time with his employees, who are all over the world, and visits his investors every year.

Even if no amount of video conferencing can make up for a personal meeting, you would think that the CEO would be too busy for regular client meetings and surely a department or branch head could manage it. That, our CEOs say, is not always the case. "As relationships become larger, more complex and more strategic, clients expect CEO level commitment. Therefore, such travel is inevitable," says Nandan Nilekani, CEO, Infosys.

Face-to-face meetings are an essential part of change management too. Change-be it a merger, launch of a new initiative, or a simple change in top management-is always preceded by cynicism and resistance because...well, nobody really likes change. But "if you are there to address all concerned, remove barriers and help people adapt, you can help motivate your employees," says Sanjiv Bhasin, Deputy CEO, HSBC India. True, the nomadic lifestyle can get tiring and invariably comes at the cost of your family. But when you are the CEO, you've got to show the way. Out on the road.

TREADMILL
Workouts In Winter

A sprained wrist, bitter cold winter mornings and too many cheery evenings sometimes force even Muscles Mani to give the gym a miss every now and then. And this time, it's been a couple of weeks that he's not showed up there. Blame the twisted wrist for that. And lest readers think I'm using it as an excuse, let me tell you it happened at the gym itself, one morning, when an attempt to pick a 20-kg dumb-bell from the floor went askew. The other two, bitter cold winter mornings and too many cheery evenings, are excuses.

But when you know you're going to miss your gym sessions-that wrist's going to keep me out for another week-and yet don't want to get out of shape, what do you do?

Try exercising moderately. Go for brisk walks in bursts of 15 minutes, twice a day. Walk, don't take the elevators, at least up to the fifth floor. I'm visiting an old friend quite often these evenings, much to her surprise. Of course, it's because her flat's on the fourth floor of a walk-up (yes, there are such buildings in Delhi) and a brisk climb-up is good cardio-vascular exercise. Walk up at a fast pace (don't bound up the stairs, though), rest for a few minutes, then walk down and start up again. Do it three times and you've a good cardio workout. The problem is my friend on the fourth floor walk-up is a heavenly cook so the calories burnt run the risk of getting back again.

But seriously, how do you motivate yourself when it's too cold to go to the gym and the general spirit of good cheer starts manifesting itself around your girth? There's no one-size-fits-all solution. Each one has one. Or doesn't. I've known people who just let themselves go in December and say to themselves that they'll get back into action in January, with brand new resolve. Some make it happen. others drag it up to March or even May before they notice that the waist size has gone from 31 to 32 to even 34!

I'll share my wintertime workout secret with you. I go to the gym twice a week through December. That's against the usual four or five times a week. Twice is good enough. A tip: break your two-day workout as follows: Day 1 for the upper body; Day 2 for the lower. On the first day do two sets of exercises for each body part, e.g., the chest, shoulders and back, and on the second, two sets each for the quads, hamstring and calves. Add a bit of cardio each day you're there in the gym and you'll be fine. Not great but fine.

 

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