The Greatest Corporate Mistake!

The greatest corporate mistake… many commit this day after day. Are you also part of this elite group? Read on…

Some years back I once met a Gujarati textile trader and he asked me what me qualification was. Promptly I said I was an MBA. I used the popular term used to describe a management graduate instead of the PGDBA that I had earned from IBS. That trader looked at me, paused for a while and then said that he was an MBA too. He asked me if I knew what MBA stood for? I gave him a bit of condescending look and before I could say anything he smiled and started telling what MBA meant. In gujarati he said” Mane Bhaddu Aavdeche (breaking into a loud laugh)” that is what MBA means! Translated in English this means “I know everything”. Make no mistake; this is a very rich trader, knows his business very well, trading is their family business and has been passed down the generations. He has more wealth than most MBAs would make during a lifetime.

That was just a joke but I was shaken. Why did he say such a thing? Is this the perception about MBAs? I thought deeper for many days and things suddenly started becoming clear… crystal clear.

Soon after this incident, in one of my earlier jobs I was in a presentation. It was just a routine presentation to intermediaries of a financial institution, telling them about a new company to be launched soon and that they should become intermediaries for that new company as well. Something struck my attention. My colleague was saying “WE are ….”, WE have been the first to do …”, So far WE have achieved …”, “WE are this and WE are that… so on and so forth.” I thought to myself; who the hell is this “WE”? This colleague (presenter) is just a year into this job from a b-school and just how on earth he has become this “WE”. What has he done to become this “WE” and he was saying this “WE” with so much conviction as if he had spent 50 years building the company and its business. He was feeling as though he was on cloud 9, with his red tie and blue suit, felt that people heard him so intently; they respected his words so much. They even followed him to his newly bought car still asking questions and clarifying doubts. My friend thought he was all important, that he was “The Man” and fully responsible for all this enthusiasm he was creating.
 
Recently I met the # 2 man of a large PSU. He was a participant in a Wealth Management workshop I was delivering at the company’s premises. He was due to retire in a year. His lifestyle is something that most people (MBAs) would envy. Great salary though he was in a PSU, a company bungalow, company car with driver, club memberships, all expenses paid from butler to gardener etc, fine dining, company helicopter, being greeted and saluted with great respect by all people in all departments of the company. Travelling by business class and living at 5 star hotels. Everything taken care of… the life of a king. Needless to say he got a great farewell on his retirement. He planned to come down and settle in Mumbai in the flat he had purchased a decade back. Any guesses what happended? From a bungalow into a small apartment!. No personal garden? What about a jogging track? He decides to change the apartment to get something better and more in line with his “status”. The prevailing real estate prices sent him in a tizzy. When he walked out from his company, head high and chest out his worth was about 2 crores +++. Now he feels worthless! Cost of maids, cook, drivers, car instalments, living costs, medical costs… costs that he is going to bear after decades of first class luxury. He had forgotten that there are things in life called electricity bills, telephone bills and not to mention the 3 mobile bills of family. This will continue for about 20 years!!! Further imagine the horror on his face when he had a look at the Mumbai local trains to save time and money in commuting. Earlier days he was taken from the airport to office and then his 5 star hotel… he had not seen this part of life.

During our corporate careers most of us get “corporatised”. Simply put we get used to a lot of things and we tend to think that we deserve the lifestyle our companies give us. This is ok and the company does not mind the expenses as you are making significant contribution to the company’s bottomline. We get drunk on our lifestyle and mistake that to be the real life. The more promotion and success we get the more we like to think that we are moving in an alternate orbit and are not a part of this world of mere mortals. We refuse to listen to anything and many times live in an illusion of what we are doing is right. What makes matters worse is that we lose touch with reality and keep basking in the glory of the banner above us. We think it is us that people are interested in; it’s actually the banner i.e. the company. When you say “WE” you have probably represented 3-4 companies in 10 years. Hence the “WE” you say is not consistent. The textile trader is not interested in you; he is interested in the banner that you represent. You are only the means, you are just an intermediary and you are simply facilitating a transaction. All your life you keep doing jobs at various companies, help the companies build their balance sheets, you do well, get recognised, get that fat bonus, you become famous, respected etc but in all this you forget to build your own balance sheet like my workshop participant. The company pampers you, gives you business class tickets and the Taj to stay at as you have devoted your life and time to make wealth for the company. Your company however does not care what wealth you are able to make. Plain cold fact!

Learn and acknowledge that there is a lot to learn from that textile trader, he lives in an apartment that even your CEO can’t afford to buy outright. Given this what is your standing? Example: You have to have a car as per your grade even if you don’t need it. It status you think. You got to have a bigger one than your subordinates. If you are thinking about creating wealth this line of thinking is tends to be plain stupidity. But given that you have an imaginary status to main hence you argue with HR for that and you lose sight of the larger things in life. Another example: You are an MBA and you understand finance best. So no one you feel can advise you. You feel the need to massage your ego from time to time; you need to make your “Call” on things. You calls also go wrong sometimes. But you still need to do things yourself as you like to call the shots and you think you are the best. You might be the best… perhaps… but like the textile trader listen to wise opinions, all the possible opinions and then make your “Call”. Even eagles need a push, even the best need trustworthy advisors. Once trust is established outsource the Wealth Management responsibility if you like so that you can do more for your job and someone can help you build your castles.

Like my workshop participant remember you are not the banner; you are just the means. This is not to make you feel small or to demean your work. It’s to tell you that you also need to become the means for creating everlasting wealth for you and your family. The corporate banner is an illusion, it is not the reality of your life… do your job well and bask in its glory whilst you stand beneath it but remember to create, add and keep building your own wealth just as you do for the banner you stand under.