I Bought The Monk's Ferrari

by Ravi Subramanian

  In India, The Associates was a small company operating in around ten cities with about fifteen branch offices. It was a very well-managed company, and when Citibank took it over, it had over five hundred employees.

  About the same time, after taking over The Associates, Citibank wanted its own leadership team to run the company, in line with what any acquiring company does. This was necessary for seamless and cultural integration of the acquired company with the acquirer.

  Now the mantle fell on Jayakumar. He was asked to give up his current post as the head of sales and distribution to take over as managing director of The Associates. He, whose job involved managing sales of auto loans, mortgages, personal loans and bank branch sales, was, for obvious reasons unhappy. From his current role, coming down to the position of a managing director of a small company like The Associates, was seen to be a step back as far as his career was concerned. He was disheartened ... who would not be? Everyone perceived this to be a vindictive act on the part of the new retail bank head. Jayakumar's boss left him with no choice, he had one of the two option—either do as his boss said or leave the organisation.

  Imagine being faced with a similar situation. Everything is going on just fine. People like you, respect you, think you to be great and then ... struuuuutttt... sttruuuuurr ... you stutter and stop. Many would probably start whining. The obvious responses would have been: 'Oh my gosh!!! ... How could he do this? ... What does he think of himself? ... Am I not good enough? ... I'll Quit!' The last one is the mother of all reactions. The earlier reactions create a frame of mind that culminates in the final exclamation.

  In such a situation your initial emotion is anger, which turns to wallowing in self-pity, generating loads of negative energy and heated comments like, This organisation sucks'... and finally comes desperation. The result is a quick stride through the exit door and an equally fast entry to the first organisation that offers a job. Is this the right approach? Well, the answer is YES, if you are an escapist, who runs away from challenges. This is the easiest getaway, from detractors, adversaries, and the perceived failure. But often, this proves to be the blunder of a lifetime. Because under duress, the decision-making ability tends to get clouded by the desperation to run away.

  But, if you want the Ferrari for real, you need to have the drive and the determination to fight and ward off all such challenges. There are two ways in which you can do that. Either you can stay and work your way out so that you get your due and your rightful place back, or, you try and make the best of whatever comes your way so that people are forced to sit up and take notice of you.

  The moment of enlightenment is when

  a person's dreams of possibilities

  become images of probabilities.

  VIC BRADEN

  Coming back to Jayakumar's case, he was a tough nut to crack. He decided to follow the second route. Make no mistake; he was extremely annoyed with the treatment meted out to him by the organisation he had served for fifteen years. When his new 'boss' told him that he had to move, it came as a big, big surprise to him. It was very clear that some of his colleagues, unhappy with his growing influence conspired against him to move him out to a non-descript position. The emotional turmoil that Jayakumar went through was no different from what anyone else would have gone through. However, the final take was different.

  Unfortunately, his exodus to The Associates was a double whammy. He was unceremoniously shunted out of Citibank to The Associates and the people at The Associates viewed him as an outsider ... a Citibanker in their midst, he was not accepted within The Associates. It was quite natural for the employees of an acquired company to feel threatened by an employee of the acquirer, especially if he has come in to manage the integration process. This built up the frustration level in Jayakumar. But for him there was no option but to stay on and fight.

  The first few days at The Associates were like a nightmare, with a herd of hostile and unsupportive colleagues. The head office of The Associates was in Delhi, whereas Jayakumar's family was based in Mumbai. This made things more difficult for him. But he did not give up. He did not allow himself to be cowed down by negative feelings. He always felt that he could make it big. And that reflected in his demeanour, it was evident in his interactions with people. He started thinking as to how fruitful he could turn this opportunity into.

  Soon, he discovered the fissure, the slack in the system of The Associates. He started penetrating deeper into it. The business model of the organisation was different from Citibank, so was the customer segment. Citibank was a bank for the elite, whereas The Associates operated for the low-income groups. A typical customer would not even walk into a Citibank branch, leave alone banking with them. Jayakumar realised, in a country of 1,200 million people, the only long-term way to build a franchise and sustained profitability was to serve the lower-middle class and The Associates was operating in that segment. The potential of this business was limitless, which Jayakumar's shrewd mind could easily envisage. He formed his own management team—a team of believers, of likeminded people. Once he got his marshals together, he went about re-engineering the company, changing processes, controlling the expenses and went on an unprecedented expansion spree. The company, which was operating with fifteen branch offices when he took over its control, in the next three years, opened over four hundred branches. Revenues started rising. The company started its journey towards being a profitable venture. Jayakumar believed that he could do it and he went all out to achieve the goal.

  In the meantime, all other businesses which Jayakumar was managing in Citibank, prior to migrating to The Associates, went downward on the scale. The loan margins were under pressure and the product profitability was under threat. However, The Associates' business which Jaya took over, later rechristened as CitiFinancial, continued to rake in money. Today the business where Jayakumar was shunted out to is the largest and the most coveted business for Citigroup in its entire retail franchise. That is not all. CitiFinancial is one of the largest consumer finance companies in this country.

  And, Jaya is back as Citibank's head of retail bank in India after a short stint as the regional head of consumer finance for the group in the Asia-Pacific region. He is now viewed as the father of consumer finance in India and is one of the most sought after names in retail finance.

  For a moment, sit back and imagine what would have happened if Jayakumar had decided to throw in the towel and run away from the crisis? Had he allowed the negative thoughts to cloud his mind and quit Citibank, none other than he would have lost out on the bargain. Would Citigroup have lost out on anything? Of course, not. Often, people make the mistake of assuming that they are indispensable for their organisations. The truth is that no individual is greater than the organisation itself. Had he left Citigroup and joined some other organisation, Citibank would have appointed someone else in Jayakumar's post and everything would have progressed at a normal pace.

  Would Jayakumar's adversary who pushed him into The Associates have been the loser? Not at all!! He would have got someone as his replacement and moved on. All the businesses would have got back on track in a few months. And, Jayakumar would have been a forgotten man.

  All this could have happened had he allowed negative thoughts to cloud his judgement. But he did not do that. It is because he saw the silver lining even behind the darkest cloud; he is an immortal name in the annals of consumer finance in India.

  He is now closer to the Ferrari than he ever was.

  Everything will not go in your way ... it is not supposed to—life is like that. So, do not even bother to crib if things take wrong turns. Instead, just set it right and move on in life. A mistake that parents often make is to tell their children that everything in life is fair. This raises expectations. It is imperative to advise them to have an optimistic outlook, if they want to succeed in this competitive world. If in life, a tricky situation pushes you too hard against the wall, always look for a crack to break through, as Jayakumar did.

>   Remember, a single streak of optimism can charge an entire team. Wonder why people want to be surrounded by those who laugh away their woes rather than the crybabies? Simply because tears are contagious, and, I am sure, no one likes to crib and whine ... neither do you.

  In conclusion, it is up to you whether you will whine and lose out on everything, or laugh and whizz away with your Ferrari.

  COMMANDMENT TWO

  Be optimistic, chase the negative thoughts away.

  A positive frame of mind will surely get you closer to your Ferrari.

  Eight

  * * *

  Be a Winner, Not a Wimp

  Once I was invited for a formal dinner party at Taj Lands End, a posh five star hotel in the suburbs of Mumbai. It was hosted by the CEO of the bank I work for, attended by almost all the employees along with their spouses.

  I told Dharini about the dinner. Her first reaction was, 'What should I wear?' A million dollar question to which, I never had a suitable answer. Women would invariably wear what they felt like, but would continue poking their spouses till they get the answers that they want.

  The heights of great men reached and kept,

  Were not obtained by sudden flight,

  But they, while their companions slept

  Were toiling upward in the night.

  HENRY WADSWORTH LONGFELLOW

  'Ravi it's your office party. I have to look good.' I knew where the the conversation was headed. She wanted a new outfit for the party. I grimaced at the thought of another expense, but did not want to get into an argument. They are, all married men would agree, best avoided in such situations. My silence was assumed as consent and a new outfit did arrive. I was in half a mind to ask the CEO to pay for it. On that Saturday evening, we went to the party, hand-in-hand, very much like a 'made for each other' couple. The party was just about warming up. People were still arriving. This was an annual reunion of sorts where everyone came with their families.

  As we walked in, we met Suneel. A young man in his mid-thirties, he had been with the bank for over seven years. His wife was with him. I introduced Dharini to them and casually asked, 'All's well?'

  'Nahin yaar. Bahut phati hui hai (No. All is not well).'

  'Why, what happened?'

  'Arre, kuch nahin yaar (Nothing much). Too much of work. I don't get to spend time with my family,' he looked at his wife and with his left arm around her waist, hugged her fondly. It looked like honeymoon had not yet ended.

  'He doesn't come home before nine,' she complained. 'Even at home he is constantly on his Blackberry.' I tried to smile. The discussion then drifted to the Blackberry.

  The last seven years Suneel had been with the bank, he had spent at the same grade. No move, no promotion. Partly, because he did not want to move and mostly, because no one wanted him in his or her team.

  'Why?' Picking up from where we left.

  'Work just doesn't seem to get over. These conference calls and meetings, they drain you out. And, you know Sangeeta. She's a perfectionist. Never happy with anything—pain in the neck she is. Makes us re-do everything.' Sangeeta was his boss. I just nodded at his remarks.

  'If I had a business of my own, and worked so hard, I would have become a millionaire by now.'

  'Sure. I am sure you would. You slog all day long. Had you slogged for yourself and not the organisation, you would have made enough money by now,' I said. All through, wondering what the consequences would have been like if had he been working for himself—maybe bankrupt by now.

  I moved on. At a large party like this, it was important to move around so that you get noticed by all. I met another colleague of mine, who had joined the organisation recently. He used to work in a local bank where he had been working for the last twelve years before joining this bank.

  'Hello ... Rohit.' I stopped as he came in front. 'How are you? Hope all's well?' I asked again.

  'Ya ... but ...' he paused.

  'But what?' The apprehension in his tone made me curious.

  'It's extremely hectic here. No time for anything else.'

  'But, what else do you want to do?'

  'Look Ravi, I don't have enough time for my family. When I get back home, my son is already asleep. I hardly get to spend quality time with him. Life sucks, man.'

  Rohit had joined the organisation only two weeks ago and he was already complaining. He was just about learning the tricks of the trade and had not yet got into his groove. What would happen if he got into his full-fledged workload and the related stress? I must confess, I was a bit taken aback by his response. Rohit had come alone and we were talking of businesses. Dharini was getting bored and that meant trouble. Sensing it, I moved on.

  Ahead of me, as my eyes were panning the room, I saw a man—tall, middle-aged and slightly steely looking with a stylish golf cap on his head, and an exquisite red and blue silky scarf tied trendily around his collar. He was walking around the hall with the latest Nokia communicator in his hand, greeting all the seniors of the bank. I saw him and walked up to him. I tapped him on the shoulder.

  'Have we met before?' I asked as he turned around.

  'Naah ... I don't think so ... have we?'

  'You look like someone I know,' I shook my head.

  'Had you been a few kilograms lighter I would have recognised you. Now 1 can't,' he started laughing, so did I.

  We had worked together when I was in Delhi and back there, we would meet almost every day. Our laughter caught notice of several others and soon, we were surrounded by a group of another six.

  'How are you, Raj?' I asked him as the laughter subsided. I was seeing him after six months.

  This gentleman, Raj Khosla was a leading service provider for the bank I worked in Delhi. He had a small firm that ran various accounting errands for all and sundry, before he started off with the bank in 1990. He would manage some small-time audits and other minor jobs for the bank. He had a small dingy office in Khan Market in Delhi. With time, he began to source a few two-wheeler loans and other cash loans for the bank. In the last decade, he had turned that dingy office manned by a few employees into a mammoth organisation which now boasts of over four thousand employees, providing Citibank with almost all the services, that he is permitted by the banking regulations. Had the bank regulators been benevolent to foreign banks in India, he would have done a lot more. The bank's reliance on him had reached to such a level that over ninety percent of the business in North India was originated by him. The business he brought for the bank was probably higher than most of the banks in the private sector. This was a commendable achievement, indeed.

  Someone from the crowd, tapped his shoulder and said, 'Aur Khosla, what's happening?'

  'Bas lagey hue hain. Business is rocking.'

  I had met three men at the dinner party—Suneel, Rohit and Raj Khosla. And, see the difference! Two of them turned around and gave me reasons why 'life sucks' and here was a man who, for the same question oozed out so much vivacity, that there was nothing more to ask for. However, it was not the statement alone, but the attitude, the approach, the air of confidence, and the positive move, that gave a much better feeling.

  Let me tell you more about Khosla. Raj Khosla, to put it loosely, is a DSA (Direct Sales Agent) for the bank for personal loans, credit cards, home loans and almost anything and everything under the sun—and he single-handedly calls the shots. He also does some outsourced work for the bank. It is a very stressful job. Apart from his own people, he has to deal with the business heads from the bank and their representatives who work with him, and of course, his own four thousand employees. He runs his office under the brand name of Shelters.

  His day at work begins at 11.00 a.m. Once he enters his office he normally stays there unless something shakes him out. He does not even step out to the bank to meet the business heads. 'That's not my job,' he says modestly.

  Throughout the day he interacts with the sales managers from the bank who help him manage his channels and his employees helping h
im extract productive work from all of them.

  Every evening, without fail, when other offices close and bankers head home, he takes all his unit managers up on the terrace of his imposing office. There, they discuss short-term and long-term tactics and ways to combat competition, to recruit people from outside, to improve upon the management and derive the maximum from the bank know-how. This goes on till ... well, there is no limit. At times, he shares a drink with them on the terrace. What he does through this is figuring out for himself, who are the ones in his team ready for the next level opportunity and those who need to be got rid of.

  These terrace discussions and his many other interactions has thrown up many a star. He has picked up people from nowhere, people who have been doing nondescript jobs, and backed them with larger roles. You will hardly hear of anything close to this in a small (if you can call it small) organisation. This would not have been possible had he not made the time and effort in working with his team.

  Once he is done with the discussion on the terrace, he heads either to the Golf Club, or back to his office to meet with various people from the bank who manage his relationship— well, without him the bank would do no business, so they have to ensure that they assist him in managing it well. By the time he returns home it is about eleven at night. This happens day after day, month after month, year after year. ... And, all seven days a week.

  He claims that he is not a managing director but a chief motivational officer-a CMO. The only job he does the entire day, as he says modestly, is to ensure that none of his four thousand people leave. If anyone does, he takes it as a challenge and works to hold back the employee. And to give him credit, the attrition levels in his organisation, which many call a 'mom and pop show' is much lower than any large organisation with four thousand employees. Such is the commitment and dedication of this man. His hard work, and 'walk the talk' with his team has encouraged ordinary people in his team to dream big. Raj has, within Shelters, built a culture which he personally oversees, which motivates his four thousand employees to rise and achieve those dreams. People from ordinary backgrounds deliver extraordinary results with him, and he works throughout the day with them, making this happen. This takes its toll, leaving him with no free time for himself.