Scammed - Confessions of a Confused Accountant

Book Review

Anonymous. (2011). Scammed - Confessions of Confused Accountant. Bangalore. Grey Oak Publishers. Pages: 175. Price Rs. 175/-

Auditing and business consulting cannot be combined just as oil and water do not mix. The reasons for this are simple. Auditing is retrospection. It deals with hard, cold facts. It advises against adventurism and advocates conservation. Caution is its watch word. On the other hand business consulting is prospective in nature. Optimism is its mantra. It functions in uncertainty. Its principle is gung-ho adventurism. It favours exploration of new ideas and new markets. ‘The only safe ship is the ship in a port’, business consultants wryly quote! Therefore the twain cannot meet. The split and demise of Arthur Andersen LLP is attributed to the firm’s overweening ambition to ride the dichotomy between auditing and business consulting at the same time. Eager to compete with its (own) business consulting arm, Andersen Worldwide in revenue generation, Arthur Andersen compromised on accounting standards, as a result of which Enron, the Texas-based energy firm sank. Along with it the original accounting firm Arthur Andersen broke up and its regional fragments merged with Deloitte Touche Tohmatsu, Ernst & Young, KPMG, three of the ‘Big Five’ Accounting firms (which included Arthur Andersen) and Grant Thornton. In order to ward off the stigma attached to the name Andersen, Andersen Worldwide is now renamed Accenture.

However auditing firms jockeying into business consulting is not new. James Oscar McKinsey a Professor of Accounting at the Chicago University founded McKinsey & Company in 1926. McKinsey was hired to turn around Marshall Field & Co a company manufacturing and marketing readymade garments that ran into doldrums during the great depression of the 1930s. Many decades before words like ‘downsizing’ were heard, McKinsey proposed that Marshall Field & Co do exactly that to turn the company around. Unable to implement his radical suggestions the company brought him in as CEO and charged him with implementing them. McKinsey was initially successful but because of his overbearing nature, made potential enemies. As he ventured into areas he knew nothing about and his mistakes caught up with him, the pressures of work finally got him and at the age of 47 McKinsey died of pneumonia.

If we delve into the history of businesses and accounting firms, we are likely to come up with many more such cases. Do we learn any lessons from these stories? The answer is ‘no’ going by the experience of Satyam Computer Services Ltd. (Satyam) and its auditors PwC – well, the Indian ‘member firm’ of PricewaterhouseCoopers International Limited (PwCIL) anyway. The two were charged with fudging accounts for several years and a partner of PwC along with the Founder Chairman of Satyam and some others of the two firms were arrested on charges of criminal conspiracy to defraud the public. The charge-sheet ran into 55000 pages. Did the story of Satyam and PwC inspire Anonymous, the author of Scammed ­to write the novel? It possibly did. The setting of the novel is Hyderabad and Visakhapatnam. (The British, who could not pronounce Visakhapatnam, made it Vizagpatam and then shortened it to Vizag. For several years now the state has reverted to its original Telugu pronunciation but the author seems to have not noticed it. He insists on calling it Vizag). Its characters  ‘speak with a thick South Indian accent’! (What else would you have them do?)

There was a time when literary critics in the West dismissed fiction by authors like Arthur Hailey and Irving Wallace as pulp fiction, meaning really not serious literature. This of course leads to the question whether literature should really be as sombre as a Russian novel to be considered serious literature. While authors like Somerset Maugham were hailed by critics in their life time, others like Jane Austen achieved this distinction only with passage of time. Although Indians have been writing in English for a long time it was only in the last few decades that they have really made it big on the international scene. At the same time the Indian approach to learning, writing and speaking English has been dramatically changing. There was a time when people who could speak and write grammatically and idiomatically correct English were in a minority. The purists lament that as the numbers of English speaking and writing people multiplied, there has been a dilution of standards. There is less exactitude with regard to grammar and syntax. Fastidious adherence to the ‘English pure’ gave way to colloquial Indianisms. This is because the curriculum of English teaching in the country has also been changing. Instead of studying Shakespearean plays, Milton’s poetry and Johnsonese, students are taught, what has come to be known as business communications in English - writing letters, advertisements and notices etc.

In the literary arena, it all started (perhaps) with Shobha De who introduced Hinglish in her writings. She was not taken seriously (or kindly) by critics at first. But as her novels acquired popularity – from those readers who did not have a stomach for more serious authors like Nirad Chaudary, V. S. Naipaul or Salman Rushidie – her publishers recognised her as a saleable author. If one can say De marked a turning point in Indo-Anglican literature, she opened up the market for more authors who catered to the needs of a certain type of burgeoning English-speaking class.

The explosion of communications through the IT, ITES and off-shoring of jobs truly Indianised English and there is no looking back. Employees of the Business Process Outsourcing Centres (BPOs, popularly known as ‘Call Centres’) have created their own patois - different of course from what they were expected to speak with their customers outside. In short, the expansion and proliferation of the English-speaking elite (?) has resulted in a ‘dumbing down’ of standards. Shobha De did not have serious competition for maybe a decade and a half till Chetan Bhagat debuted. He found a winning formula by precisely identifying his target audience. If the (Indian) English-literature consuming market is largely populated by the information technology guys (and girls) why not directly address them? This he did and was an instant success.

Scammed is in the Chetan Bhagat mould. Its setting is the accounting / business management industry. Its protagonist Hitesh Patel was entrusted by his accounting firm to audit a motor car company in Visakhapatnam, where he espies a lot of white-collar crime and siphoning of funds in it. While making a report of it to the principal board members he finds himself making some useful suggestions for the expansion of business. To an outside observer his formula of forward integration may not be very appealing. For example if a motor car company wishes to diversify into car-hiring business is it necessary that it should confine itself to cars manufactured by the parent company, unless it was for captive consumption? Be that as it may, the director was so impressed with the idea that he offers him a job at five times his salary to implement it. As fate catapults Hitesh into the big league of five figure salaries, five star hotels and of course beautiful girls he also willy-nilly gets sucked into a vortex of organisational politics, political intrigues and financial wheeling-dealings and finally financial offences. The novelist seeks to paint Hitesh as a self-righteous manager with only a weakness for a few girls. How else could he plant those steamy scenes so essential in a formula novel?

In Indish, the adjective ‘homely’ has a cultural connotation, quite different from what the word means in general English, and qualifies a woman as dutiful, home-loving and not coquettish. Therefore high-paid eligible bachelors look for ‘homely girls’ in matrimonial advertisements. In this story too after Hitesh had had his flings with attractive but unfaithful girls he finds succour in his ‘homely’ personal assistant Payal, whom he had ignored for long. As she dotes on him as a mother-hen he finally finds his soul-mate. She lends him a shoulder to cry on when he is down and generally offers him solace and succour. The characters are too linear and colourless but the book may be a good travel companion in a short journey. The novel could have done with some editing and proofing - its Indish notwithstanding. But the last two chapters seem to have been written by a more professional hand.

This review is part of the Book Reviews programme at Blogadda.com 

A modern management seminar!

You'll find here all there is to learn from modern management wisdom. Follow its simple steps to ascend the management ladder. Not since Parkinson has management wisdom been imparted in such succinct and easy to follow form. It is not the usual ‘how to succeed’ stuff which requires you to be “a little more intelligent, a little more hardworking, a little more painstaking” to succeed. As Parkinson said, if you were all that you would not require a guide to succeed. So here’s to success and ascendance to the top!

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As always, Subbu barged in crying ‘Guruji, I need your help! I have to make a presentation at our annual sales conference next week. The boss wants me to make a presentation about how I plan to double my sales in the coming year. Top management will be there and if I goof up, it will be outer darkness for me.’ ‘No problem’, I said. I have just returned from a management seminar myself and acquired all the wisdom there was in it………  

In the post lunch session, a Senior Vice President has been droning on for over half an hour. Half the participants were dozing from the exhaustion of overnight travel and the effects of a sumptuous lunch. He was saying, “we live in a 24/7 world.” Yeah, at least I do. In fact 24 hours in a day are not enough for me even to browse through the torrent of communications I receive. I receive mails from my boss, his boss and the head office. EDP (electronic data processing department for the uninitiated) sends me enough paper to drown in. Lest I forgot its existence, ‘HR’ sends me communications. In the olden days it was ‘Personnel’; now ‘Human resources’ has a nice ring to it. The only thing I could make out of ‘HR’ was it regularly denies me the type of increments, I feel I deserve. I receive circulars from ‘Logistics’ (in the days of yore it was called ‘Distribution’). I also receive communications from ‘Corporate Communications’. In the olden days the function of CC was mainly to produce the monthly in-house magazine and occasionally liaise with the press if there was a need. There were no pink papers and businesses did not make it often to the media. Now CC has a larger role. It is to see big-boss’ mug-shot appears in the newspapers at least once a month and he makes it to the television at least once in a quarter for his fifteen seconds of fame. The rest of the time CC throws its weight around and takes it out on minions like us.

…“We must leverage our core competences for greater customer focus.” A colleague who was sitting next to me whispered, ‘oh yeah, his core competence is in placating the boss and flattering his wife. Leverage, certainly he does. Last weekend he was out playing golf with him. His wife was quite unhappy; nowadays he spends his Sunday mornings at his boss’ residence you know.’ The last part jerked me out of my reverie. So my colleague was a regular visitor at our boss’ residence. How remiss of me? Haven’t I lost my customer focus?

…“in order to take on competition, we will have to look for synergy within, benchmark our efforts with the best practices in the industry and think out of the box. Let us ask ourselves if we are able to achieve a strategic fit; if not we should revisit our game plan. I call upon you ladies and gentlemen, let us become more proactive.” Yes, be at the boss’ side throughout the seminar and bring him coffee and cookies during breaks. Carry a pack of his brand of cigarettes. It comes in handy when he runs out of his pack, which to be sure he often does.

…“let us empower our team members” (for some inexplicable reason, in modern management parlance, the word ‘subordinate’ is taboo; so ‘team members’ it is.) “We need to change our mindsets and expeditiously look for a paradigm shift; let us think win-win.” Yeah, for sure! We do all the donkey’s work and you promote your favourite acolyte. He wins and you win because you get promoted!

…“As you all know the competition is breathing down on our necks. If we are serious about outpacing it, we will have to fast-track in enhancing our knowledge base. Let us come out of the loop and provide value-added service to our customers, for it is a result-driven world.”

...“don’t forget, the truth is at the end of the day, it is the bottom line that counts.” Yes Sir, we are looking forward to the end of the day. The bottom line is, that at the end of the day there would be dinner and drinks. Bosses would be around, so the party would begin on a cautious note but after a couple of rounds the lions within would come out.

… “Good Luck folks, God go with you, till we touch base again!”

The seminar made me wiser. I knew I have picked up the essence of management ‘Gita’. I gave Subbu a list of twenty five words. I suggested that he sprinkle these words throughout his presentation and presto, he would be a hit with his bosses. Here they are, in alphabetical order: “at the end of the day - benchmark - best practice - bottom line - client focus - core competencies - empowerment - expeditious - fast track - game plan - knowledge base – leverage - mindset - out of the loop - paradigm - proactive - result-driven - revisit - the truth is - think outside the box - touch base - strategic fit - synergy - value-added - win-win.” I told him, ‘don’t forget the most important of them all is “24/7”.’ 

It is all about charisma

“Have we as a nation properly understood the theory of charisma as originally proposed by Max Weber (1864-1920) in his ‘The theory of social and economic organisations’ or are we merely confused between charm and charisma.”

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“The [Congress] party which considers the nation a family heirloom never hesitated to destroy democratic institutions to cling on to power. Jawarhalal Nehru had the constitution amended to circumscribe the inconvenient freedom of speech. His daughter Indira wished to do away with the fundamental rights including the right to life. For the current crop ruling the nation by proxy, the constitution appears to be a mere nuisance. Its more important objective is coronation of its prince in 2014, banking on the premise of charisma.” 

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The following article, entitled, “It is all about charisma”, appeared in The Hans India of January 17, 2012. (Emphasis added.)

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Thomas Jefferson, the third president of America is credited with the aphorism: “A politician looks forward only to the next election; a statesman looks forward to the next generation.” One of the founding fathers of the American nation, he played a major role in its expansion and consolidation beginning with the acquisition of Louisiana.   

The wise men who drafted the Indian constitution envisaged the concept of affirmative action to bring certain disadvantaged sections of the society on par with the rest. The provision of reservations in legislative bodies, employment and education was to be a temporary measure even in the case of the most disadvantaged classes such as the Scheduled Castes and Scheduled Tribes. The original Article 334 of the constitution limits the provision of reservation of seats for SCs and STs in legislative bodies to sixty years. Additionally, the first part of Article 335 has a curious proviso. It states that the “claims of the Scheduled Castes and Scheduled Tribes shall be taken into consideration, consistently with the maintenance of efficiency of administration, in the making of appointments to services and posts…” Unfortunately, India has been condemned to be ruled by politicians - not statesmen - for whom the next election has always been more important than the next generation. Compelled by the politics of competitive populism they have not only been extending the provision of reservations thus negating the original sunset clause but have been bringing in more and more sections into the ambit of reservations.

As an ideologically bankrupt Congress party falls back on the family ‘charisma’ to return it to power in UP in 2012 and eventually at the centre in 2014, it has come up with another round of reservations as an electoral sop. 

The party which considers the nation a family heirloom never hesitated to destroy democratic institutions to cling on to power. Jawarhalal Nehru had the constitution amended to circumscribe the inconvenient freedom of speech. His daughter Indira wished to do away with the fundamental rights including the right to life. For the current crop ruling the nation by proxy, the constitution appears to be a mere nuisance. Its more important objective is coronation of its prince in 2014, banking on the premise of charisma. 

Have we as a nation properly understood the theory of charisma or are we merely confused between charm and charisma?

The theory of ‘Charismatic Leadership’ evolved from ideas originally proposed by Max Weber (1864-1920) in his ‘The theory of social and economic organisations’. Weber, known as an economist and historian in his time may be said to be the father modern sociology. He was the first to use the word ‘charisma’ to describe ‘leadership’ that emerges in crisis situations. 

In Greek, the word ‘Charisma’ means ‘divinely inspired gift’. Charismatic leadership is neither traditional nor based on formal authority but based on followers’ perception that the leader is gifted with exceptional qualities. A charismatic leader, as conceptualised by Weber is gifted with a radical vision that offers solutions to crisis situations. He attracts followers who believe in his vision. The followers experience success that makes them trust their leader’s vision as attainable. This makes them perceive the leader as extraordinary.

What then are the traits of a charismatic leader? Literature on leadership defines precisely the attributes, traits and behaviours of charismatic leaders. Thus charismatic leaders have a strong need for power, high self-confidence and conviction in their own beliefs and ideals and are able to influence the attitudes and behaviours of their followers. But first a charismatic leader must have a vision that is both ennobling and appealing. 

The leader must be able to make his followers visualise the ennobling vision by expressive language and communication. The leader must be able to take exceptional personal risks and make self-sacrifices to attain the vision. The leader must consistently communicate his confidence in and high expectations from his followers. The leader must consistently ensure that both he and his followers observe role-modelling consistent with the vision. 

The leader must be able to build identification with the vision and finally he must be able to empower the followers to achieve the vision.

So what is the ennobling vision that a charismatic leader should have had and communicated to the people of a newly liberated nation? Why, it is the vision of a strong and resurgent nation, for the building of which the leader takes personal risks and makes sacrifices. A strong and resurgent nation, the concept of which every citizen identifies with and believes in. In order to be labelled charismatic did any of our leaders since independence believe in and communicate such ennobling vision? Did any of them take personal risks and make sacrifices for realising such ennobling vision? Does every citizen identify with and believe in such ennobling vision?

TAILPIECE: Malcolm Gladwell calls the misconception of ‘charisma’, the “Warren Harding Error” (‘Blink’, 2006. Penguin Books, New Delhi). Warren Harding was elected president because his electors could not distinguish between charisma in its popular misconception and charismatic leadership. The 29th US President (1921–1923) was tall, broad-shouldered and perfectly proportioned, had a bronzed complexion and a resonant masculine voice. Harding came to be described a ‘Roman’ for his good looks. He was affable and had an implacable desire to please. His father once told him that it was good he hadn’t been born a girl because, “You would be in the family way all the time. You can’t say no”. During his presidency, he busied himself with golf, poker and his mistresses while his cronies looted the exchequer ‘in a variety of creative ways’. 

Harding had the dubious distinction of being the second of ten ‘Worst Presidents’. Jay Tolson says that he was an ‘ineffectual and indecisive leader’ and his ‘claim to infamy rests on spectacular ineptitude’. (US News & World Report, February 16, 2007. Worst Presidents: Warren Harding, accessible from http://bit.ly/a3bRER).

The versatile genius

“If intimacy with Islamic scholars stimulated him to learn Arabic and Persian, kinship with Hindustani classical singers made him cultivate their style. The cultivation of the Hindustani style added a rare and unique hybrid timbre to his music not usually found in the rendering of Carnatic singers and won him many accolades including those from the Maharajah of Mysore and Rabindranath Tagore. This is because it was unusual for Carnatic singers to be able to sing Hindustani and vice versa. The hybrid style he developed left an indelible stamp on the progress of Carnatic music. It was adopted by later musicians including some of the greats of Carnatic music, marking it as the sui generis of Vizianagaram music. Eventually when Narayana Das became the first principal of Sri Vijayarama Gana Pathasala (the first music college in South India) it became part of the curriculum. The Maharajah of Vizianagaram established the Music College in 1919 to honour the Pandit and enable enthusiasts to learn music from him. The college produced many great musicians. Pandit Narayana Das inducted violin maestro Dwaram Venkata Swamy Naidu as a lecturer in the college. Dwaram succeeded Pandit Narayana Das as principal after the latter relinquished office in 1936.”

The following article on Pandit Srimadajjada Adibhatla Narayana Das appeared in The Hans India of January 8, 2012. The original may be seen here: The versatile genius

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Sri Narayana Dasu

Sir Cattamanchi Ramalinga Reddy, eminent litterateur, educationist and founder Vice Chancellor of Andhra University described Srimadajjada Adibhatla Narayana Das (1864-1945) as a ‘university’. Sir Ramalinga Reddy was not exaggerating, for Narayana Dasu was a linguist with proficiency in as many as eight languages, poet, philosopher, writer, composer, dancer, actor and the creator of the unique art form, Hari Katha. 

It is well nigh impossible to find a parallel for him in the history of Indian literature. Adibhatla Narayana Das was the only scholar who had mastery over four classical languages (Sanskrit, Telugu, Arabic and Persian) and translated from Persian and English into Sanskrit and Telugu; the only litterateur who wrote a comparative treatise on the works of Kalidas and Shakespeare; the only writer-composer who translated into Telugu and set to music Rig Vedic hymns and the only writer-composer who composed a geeta-malika comprising 90 Carnatic ragas. As a writer-composer who composed music in all the 72 Carnatic ragas, he was next only to Saint Thyagaraja. 

His literary output was voluminous. He wrote over 50 books in Telugu, Sanskrit and Atcha-Telugu (Desyandhramu or Telugu unmixed of Sanskrit). His works included original story-poems (Kavyas and Prabandhas), Harikathas, prose works, musical works, dramas, translations, treatises in philosophy and Vedic studies and children’s literature. For want of space, only a few of his works are introduced here:

Navarasatarangini (1922): A study that compares, contrasts and critiques the treatment of the nine rasas or moods in the plays of Shakespeare and Kalidas. A voluminous work, with a lengthy preface, it vetted the entire of body of dramatic literature of the two writers.

Rubaiyat of Omar Khaiyam (1932): Narayana Das felt that Edward Fitzgerald’s English renderings of Omar Khaiyam’s Rubaiyat were not literal and did not do justice to the spirit of the Persian poet’s philosophy. In order to demonstrate his thesis, Narayana Das translated both the original Persian and the English renderings into Sanskrit and Atcha-Telugu. “Hyderabad Bulletin”*, a prominent newspaper of the time felt the book merited a review - Here are some excerpts from the editorial entitled, “A Monument of Scholarship”: “[...] a careful perusal of the book fills us with admiration at the astounding scholarship of the learned Pandit […] In these degenerate days when scholarship has fallen on evil times, it is incredible to learn that a Hindu, with Telugu as his mother tongue, should have been so filled with admiration for a Persian poet that, after he had passed his sixtieth year, he took the trouble to master so alien a language, and translate the masterpiece not only into Telugu but into another classical language, Sanskrit.”

Jagajjyothi (1942-43): It was his magnum opus in which he analysed, discussed and critiqued ancient Vedic lore and tried to apply his theories to everyday life. It contains the quintessence of Narayana Das’ philosophy and outlook towards life. In this he was at once heretical and traditional, rational and religious. He distilled all that is good in all Indian philosophies and brought about a synthesis and propounded a new philosophy of humanism. 

Dasavidharaganavati Kusumamanjari(1938): An outstanding musical work of unparalleled erudition, it is a Devi stotram comprising 90 Carnatic ragas. The first half is in Sanskrit and  the second half in Telugu. 

Vizianagarm of the late nineteenth century was a haven of literary and artistic talent and was - to borrow a phrase from renaissance literature - in a state of intellectual ferment. Narayana Das’ innate artistry blossomed and flourished. Narayana Das used  to absorb knowledge the way sponge absorbs water. If intimacy with Islamic scholars stimulated him to learn Arabic and Persian, kinship with Hindustani classical singers made him cultivate their style.

Gajarohanam at Singareni

The cultivation of the Hindustani style added a rare and unique hybrid timbre to his music not usually found in the rendering of  Carnatic singers and won him many accolades including those from the Maharajah of Mysore and Rabindranath Tagore. This is because it was unusual for Carnatic singers to be able to sing Hindustani and vice versa. The hybrid style he developed left an indelible stamp on the progress of Carnatic music. It was adopted by later musicians, including some of the greats of Carnatic music. Eventually when Narayana Das became the first principal of Sri Vijayarama Gana Pathasala (the first music college in South India) it became part of the curriculum. The Maharajah of Vizianagaram established the Music College in 1919 to honour the Pandit and enable enthusiasts to learn music from him. The college produced many great musicians. Pandit Narayana Das inducted violin maestro Dwaram Venkata  Swamy Naidu as a lecturer in the college. Dwaram succeeded Pandit Narayana Das as principal after the latter relinquished office in 1936.

Pandit Narayana Das’ literary and musical accomplishments left him peerless in his time. The literary and musical elite of his time joined to honour him with the title of “Sangitha Sahitya Sarvabhauma.” The musical maestros of his time honoured him with titles like “Laya Brahma” and “Panchamukhi Parameswara” for his ability to sing to five talas, beat with two arms, two feet and head. Five musicians used to keep time with him when he performed “Panchamukhi.” The versatile genius breathed his last on January 2, 1945. 

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*To read the editorial review of Pandit Narayana Das' Rubaiyat of Omar Khaiayam by Hyderabad Bulletin please click here: A MONUMENT OF SCHOLARSHIP