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From santosh.puthran@... Sun Feb 01 04:17:39 2009
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From: Santosh Puthran <santosh.puthran@...>
Subject: [MA blog]: Are you following a tractor
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http://www.managementaccountant.in/2009/01/are-you-following-tractor.html
[MA blog]: Updates on www.managementaccountant.in ... Share this fortune
with your friends<http://www.google.com/reader/public/atom/user/12006801209=
199901697/label/Management%20Accountant>
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Are you following a
tractor<http://feedproxy.google.com/%7Er/ManagementAccountant/%7E3/u4N3_XOL=
2pM/click.phdo>
Posted: 31 Jan 2009 12:45 AM PST
A couple of days ago, when I was at the roundabout, I saw a tractor enterin=
g
on the right. Since it was on my right, it had the priority on the road.
Then I entered the road and was behind it. The road was a A road - single
carraige way. The tractor was driving at a speed of 20m per hour and I had
no choice but to follow it. My vision was blocked by the tractor, I could
not overtake since there was a oncoming traffic on the other road. All the
traffic behind was driving at 20 miles per hour and the queue of cars was
building up. We had to follow it for another 1 mile till the road become a
dual carriage lane.
The question I would ask is, "Are we following trends in real life and
accepting them ? " Or can we change them or look issues in a different
perspective.
1. Accounting Body: Being a
member<http://www.managementaccountant.in/2008/03/membership-of-accounting-=
body.html>of
a particular accounting body, your institute would be advising you on
latest happenings through various medium like seminars, internet and
journal. As a professional, you should be asking yourself, "Is my accoun=
ting
body re they doing enough for the membership fees I pay?" If not, start
communicating with your accounting body on what you need from your
accounting body as tools for your knowledge and how your accounting body
should interact with business. A positive public image of the accounting
body and "Can do" approach helps the members in the profession. You are =
not
there to drive your career at 20 miles per hour. Do you ?
2. Business Models: Most of us read a lot of books to understand the
business models. And acquire a ready made recipe directly from the brain=
s of
management gurus without any effort. Don't you feel we are restricting
ourselves to think. Just find out any business that is different and ana=
lyse
why it is successful E.g. I pondered when I picked up copy of Friday-Ad =
for
free ads, how does it make money. And one of thing that caught my attent=
ion
was the 070 telephone number on every ad. This looked to be a premium
telephone number. So when the buyer calls the seller, he is being charge=
d at
a higher rate and Friday Ad must getting a cut. More the callers, more t=
he
revenue. !!! Did you notice on Amazon website, there are sponsored links=
of
their competitors selling the same products amazon is selling ? How does=
it
help Amazon ? ... Amazon does follow trend, it creates them.
3. Corporate Governance: Recently the word "Corporate
Governance"<http://www.managementaccountant.in/2008/05/corporate-goverance-=
uk.html>have
taken a beating. Satyam scam (and banks going bust all over the
world.)
The company decorated with all the honours for good governance and numer=
ous
awards both locally and internationally. Today everyone is questioning, =
"Is
audited financial statements reliable to judge a company ?" Our training=
in
accountancy taught us to look at the financial statements along with non
financial indicators like the directors report and then judge how the
company is doing. I am wondering, whether Porter
Diamond<http://www.managementaccountant.in/2008/03/porters-diamond.html>,
be a good tool to analyse corporate governance ? E.g. MS Office is a
expensive product<http://www.managementaccountant.in/2009/01/alternative=
-office-applications-for.html>but
it is widely used. In developing countries, where the legal protection
is not strong, piracy is a problem. So whether small business can afford=
it
? If we apply Porter's diamond, our analysis for corporate governance wo=
uld
be under heading "Social" to arrive at any conclusion. A change in
perspective would help to analyse the business. Analyse Satyam Computers
using Porter's Daimond for Corporate Governance for last seven years and=
see
whether you get right answers.
4. Tail Wagging the Dog: You buy a laptop and then you subscribe for a
broadband. The competition is so intense in the market that the broadban=
d
companies are offering laptop for
free<http://www.managementaccountant.in/2008/01/free-laptop-with-aol-broadb=
and.html>,
if you subscribe to their broadband for a 18 months contract. You must h=
ave
noticed, a song is available =C2=A30.99 for download and the ring tone f=
or a
whopping =C2=A31.50.!!! So people who are selling ancilliary products ar=
e making
more than money than people who sell the originals. They are ahead of th=
e
tractor.
5. Knowledge from books: We generally tend to believe that all the
knowledge is gained from books. It is true to some extent but sharing vi=
ews
in the forum would refine what you gained so far. When my views are
challenged with proper arguments, I tend to view them from a different
perspective. So participating in forums, social
networking,<http://www.managementaccountant.in/2008/01/networking-and-how-t=
o-use-social.html>comments
on articles / blogs or start your own website are ways to break the
trend. As a management accountant you have more to gain by doing new thi=
ngs
rather than reading books.
Following a tractors may not be a good idea. Either make the tractor run
faster or drive past before it comes.
Please share your views by commenting on this article ? Also let me know
whether you are following any tractor ? May be we can discuss how you can
drive ahead of it.
Regards,
Santosh Puthran
*Do you like to be updated in Accountancy ?*
Click here to get updates by Email in your
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*You may also like to read*
1. Ethics on ACCA website
11-Feb-2008<http://managementaccountant.blogspot.com/2008/02/ethics-on-acca=
-website.html>
2. Combined of Corporate Governance UK
20-April-08<http://managementaccountant.blogspot.com/2008/04/combined-code-=
on-corporate-governance_20.html>
3. MOU With CIMA ICWAI a historic agreement
12-Jan-09<http://www.managementaccountant.in/2009/01/mou-with-cima-icwai-hi=
storic-agreement.html>
4. Resistance to Change - Kotter and
Schleinger<http://www.managementaccountant.in/2008/04/resistence-to-change-=
approaches-of.html>
5. Strategic
Drift<http://www.managementaccountant.in/2008/04/strategic-drift.html>
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<a href=3D"http://www.managementaccountant.in/2009/01/are-you-following-tra=
ctor.html">http://www.managementaccountant.in/2009/01/are-you-following-tra=
ctor.html</a><br><div class=3D"gmail_quote"><br><br>
<div>
<div style=3D"margin: 0pt 2em; font-family: Georgia,Helvetica,Arial,Sans-Se=
rif; line-height: 140%; font-size: 13px; color: rgb(0, 0, 0);">
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<tbody><tr>
<td style=3D"vertical-align: top;" width=3D"99%">
<h1 style=3D"margin: 0pt; padding-bottom: 6px;">
<a style=3D"color: rgb(136, 136, 136); font-size: 22px; font-family: Arial,=
Helvetica,sans-serif; font-weight: normal; text-decoration: none;" href=3D"=
http://www.google.com/reader/public/atom/user/12006801209199901697/label/Ma=
nagement%20Accountant" title=3D"(http://www.google.com/reader/public/atom/u=
ser/12006801209199901697/label/Management%20Accountant)" target=3D"_blank">=
[MA blog]: Updates on www.managementaccountant.in ... Share this fortune wi=
th your friends</a>
</h1>
</td><td width=3D"1%"><a href=3D"http://www.google.com/reader/public/atom/u=
ser/12006801209199901697/label/Management%20Accountant" target=3D"_blank"><=
img src=3D"http://lh3.google.co.uk/puthran.santosh/Rtkoj3iS8LI/AAAAAAAABTk/=
FJuL3bnvfDU/s144/MAlogo.jpg.jpeg" alt=3D"Link to Management Accountant Blog=
- Up-to-date with Accountancy" style=3D"border: 0pt none ; padding: 0pt 0p=
t 10px 3px;"></a></td>
</tr>
</tbody></table>
<table style=3D"border-top: 1px solid rgb(153, 153, 153); clear: both; padd=
ing-top: 0.5em;">
<tbody><tr>
<td style=3D"margin-bottom: 0pt; line-height: 1.4em;">
<p style=3D"margin: 1em 0pt 3px; line-height: 115%;">
<a style=3D"font-family: Arial,Helvetica,sans-serif; font-size: 18px;" href=
=3D"http://feedproxy.google.com/%7Er/ManagementAccountant/%7E3/u4N3_XOL2pM/=
click.phdo" target=3D"_blank">Are you following a tractor</a>
</p>
<p style=3D"margin: 9px 0pt 3px; color: rgb(85, 85, 85); font-family: Georg=
ia,Helvetica,Arial,Sans-Serif; line-height: 140%; font-size: 13px;">
<span>Posted:</span> 31 Jan 2009 12:45 AM PST</p>
<div style=3D"margin: 0pt; font-family: Georgia,Helvetica,Arial,Sans-Serif;=
line-height: 140%; font-size: 13px; color: rgb(0, 0, 0);"><div style=3D"te=
xt-align: justify;">A couple of days ago, when I was at the roundabout, I s=
aw a tractor entering on the right. Since it was on my right, it had the p=
riority on the road. Then I entered the road and was behind it. The road wa=
s a A road - single carraige way. The tractor was driving at a speed of 20m=
per hour and I had no choice but to follow it. My vision was blocked by th=
e tractor, I could not overtake since there was a oncoming traffic on the o=
ther road. All the traffic behind was driving at 20 miles per hour and th=
e queue of cars was building up. We had to follow it for another 1 mile ti=
ll the road become a dual carriage lane.<br>
<br>The question I would ask is, "Are we following trends in real life=
and accepting them ? " Or can we change them or look issues in a diff=
erent perspective.<br><ol><li><span style=3D"font-weight: bold;">Accounting=
Body:</span> Being a <a href=3D"http://www.managementaccountant.in/2008/03=
/membership-of-accounting-body.html" target=3D"_blank">member</a> of a part=
icular accounting body, your institute would be advising you on latest happ=
enings through various medium like seminars, internet and journal. As a pro=
fessional, you should be asking yourself, "Is my accounting body re t=
hey doing enough for the membership fees I pay?" If not, start communi=
cating with your accounting body on what you need from your accounting body=
as tools for your knowledge and how your accounting body should interact =
with business. A positive public image of the accounting body and "Ca=
n do" approach helps the members in the profession. You are not there =
to drive your career at 20 miles per hour. Do you ?<br>
</li><li><span style=3D"font-weight: bold;">Business Models:</span> Most of=
us read a lot of books to understand the business models. And acquire a r=
eady made recipe directly from the brains of management gurus without any e=
ffort. Don't you feel we are restricting ourselves to think. Just find =
out any business that is different and analyse why it is successful E.g. I=
pondered when I picked up copy of Friday-Ad for free ads, how does it make=
money. And one of thing that caught my attention was the 070 telephone num=
ber on every ad. This looked to be a premium telephone number. So when th=
e buyer calls the seller, he is being charged at a higher rate and Friday A=
d must getting a cut. More the callers, more the revenue. !!! Did you notic=
e on Amazon website, there are sponsored links of their competitors selling=
the same products amazon is selling ? How does it help Amazon ? ... Amazon=
does follow trend, it creates them.<br>
</li><li><span style=3D"font-weight: bold;">Corporate Governance:</span> Re=
cently the word <a href=3D"http://www.managementaccountant.in/2008/05/corpo=
rate-goverance-uk.html" target=3D"_blank">"Corporate Governance"<=
/a> have taken a beating. Satyam scam (and banks going bust all over the wo=
rld.) The company decorated with all the honours for good governance and nu=
merous awards both locally and internationally. Today everyone is questioni=
ng, "Is audited financial statements reliable to judge a company ?&q=
uot; Our training in accountancy taught us to look at the financial stateme=
nts along with non financial indicators like the directors report and then =
judge how the company is doing. I am wondering, whether <a href=3D"http://=
www.managementaccountant.in/2008/03/porters-diamond.html" target=3D"_blank"=
>Porter Diamond</a>, be a good tool to analyse corporate governance ? E.g. =
<a href=3D"http://www.managementaccountant.in/2009/01/alternative-office-ap=
plications-for.html" target=3D"_blank">MS Office is a expensive product</a>=
but it is widely used. In developing countries, where the legal protection=
is not strong, piracy is a problem. So whether small business can afford i=
t ? If we apply Porter's diamond, our analysis for corporate governance=
would be under heading "Social" to arrive at any conclusion. A c=
hange in perspective would help to analyse the business. Analyse Satyam Com=
puters using Porter's Daimond for Corporate Governance for last seven y=
ears and see whether you get right answers.<br>
</li><li><span style=3D"font-weight: bold;">Tail Wagging the Dog:</span> Yo=
u buy a laptop and then you subscribe for a broadband. The competition is s=
o intense in the market that the broadband companies are offering l<a href=
=3D"http://www.managementaccountant.in/2008/01/free-laptop-with-aol-broadba=
nd.html" target=3D"_blank">aptop for free</a>, if you subscribe to their br=
oadband for a 18 months contract. You must have noticed, a song is availabl=
e =C2=A30.99 for download and the ring tone for a whopping =C2=A31.50.!!! =
So people who are selling ancilliary products are making more than money th=
an people who sell the originals. They are ahead of the tractor.</li>
<li><span style=3D"font-weight: bold;">Knowledge from books:</span> We gene=
rally tend to believe that all the knowledge is gained from books. It is tr=
ue to some extent but sharing views in the forum would refine what you gain=
ed so far. When my views are challenged with proper arguments, I tend to vi=
ew them from a different perspective. So participating in forums, <a href=
=3D"http://www.managementaccountant.in/2008/01/networking-and-how-to-use-so=
cial.html" target=3D"_blank">social networking,</a> comments on articles / =
blogs or start your own website are ways to break the trend. As a managemen=
t accountant you have more to gain by doing new things rather than reading =
books.<br>
</li></ol>Following a tractors may not be a good idea. Either make the tra=
ctor run faster or drive past before it comes.<br><br>Please share your vie=
ws by commenting on this article ? Also let me know whether you are followi=
ng any tractor ? May be we can discuss how you can drive ahead of it.<br>
<br>Regards,<br><br><br>Santosh Puthran<br><br><p><b><span style=3D"color: =
rgb(255, 128, 0);">Do you like to be updated in Accountancy ?</span></b></p=
> <p><a href=3D"http://www.feedburner.com/fb/a/emailverifySubmit?feedId=3D=
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py.com/gotostore.gif"></a></p> <p><a href=3D"http://astore.amazon.co.uk/ma=
nagementaccountant-21/" target=3D"_blank"><b>Visit MA Stores ? You will fin=
d something you are looking for ....</b></a></p>
<p style=3D"text-align: center;"><a href=3D"http://astore.amazon.com/mana=
gemaccoun-20/" target=3D"_blank"><br></a></p><div style=3D"text-align: cent=
er;"><a href=3D"http://astore.amazon.com/managemaccoun-20/" target=3D"_blan=
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r></div><br><br><center><br><br></center><br><br><p><b><span style=3D"color=
: rgb(255, 128, 0);">You may also like to read</span></b></p>
<ol><li><a href=3D"http://managementaccountant.blogspot.com/2008/02/ethic=
s-on-acca-website.html" target=3D"_blank">Ethics on ACCA website 11-Feb-200=
8</a> </li><li><a href=3D"http://managementaccountant.blogspot.com/2008/04/=
combined-code-on-corporate-governance_20.html" target=3D"_blank">Combined o=
f Corporate Governance UK 20-April-08</a></li>
<li><a href=3D"http://www.managementaccountant.in/2009/01/mou-with-cima-icw=
ai-historic-agreement.html" target=3D"_blank">MOU With CIMA ICWAI a histori=
c agreement 12-Jan-09</a></li><li><a href=3D"http://www.managementaccountan=
t.in/2008/04/resistence-to-change-approaches-of.html" target=3D"_blank">Res=
istance to Change - Kotter and Schleinger</a></li>
<li><a href=3D"http://www.managementaccountant.in/2008/04/strategic-drift.h=
tml" target=3D"_blank">Strategic Drift</a></li></ol></div><br style=3D"clea=
r: both;" clear=3D"both">
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