This document contains a summary of the Inscriptions 21 newsletter. It discusses creativity as the 6th element of the universe in 3 parts. It also contains an article on how to estimate capital needs for life insurance through a case study example. The last section features a picture drawn by a child and promotes an upcoming training session.

1. INSCRIPTIONS 21
TRUTH NEVER FADES
HIGH LIGHTS OF THIS ISSUE
1) SCULPTOR INSCRIBES: CREATIVITY: 6TH ELEMENT OF THE UNIVERSE PART 3
2) GURUS SPEAK: HOW TO ESTIMATE CAPITAL NEED ANALYSIS
3) CATERPILLAR SPACE: MOTIVATION BY MR THIRULOK KUMAR

2. R.GOPINATH
gopinathr@go-past.com
CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

3. One important driver of creative thinking is the gap between our current position and the desired
position. This gap creates a tension inside us. This tension is the cradle of creativity.
For example about 30 years before we had to move to another State in India. Gujarat. I was
posted to a deep rural area in Gujarat. I did not know Gujarati (Native Language) then. The only
language that could help communicate was Gujarati. Even shopping day to day needs became a
challenge. It would take time to learn the names of items in Gujarati. But we needed to shop to fill
the stocks. So what do we do. We would make small packets of the remaining stocks at home,
one small packet of rice, another packet of salt, packet of pepper, cumin and so on and then go
to the shop, show him the packet and buy. We could manage our requirements till we could learn
the names of the same in Gujarati. The gap between our current position and the desired position
gave rise to a tension and that tension taught us an alternate method of communication. Then for
other items we started using pictures and photos. This was in 1984, the time when we did not
have Google or translation apps or even mobile phones.
CREATIVITY- 6TH ELEMENT OF
THE UNIVERSE
PART 3
R.GOPINATH
gopinathr@go-past.com
UNIVERSE IS CONSIDERED TO BE CONSTITUTED WITH 5 ELEMENTS. THE
EARTH, THE SKY (SPACE), AIR, FIRE AND WATER. THE 6TH ELEMENT THAT
THE HUMANS’ OF THE UNIVERSE HAS DEVELOPED IS THE POWER OF
CREATIVE THINKING. THIS WILL BE THE DETERMINING FACTOR FOR
BUSINESSES AND LIVES IN THIS MODERN ERA.

4. All that we have experienced in the past has been recorded in our memory. Most of the times we
use this data for making decisions.
For example the route to our office, how much time it takes to reach there. How much salt to add
to this dish that we are cooking. How many men required to complete this task? What is (A+B)2.
What does a yellow line on the road indicate? All that we have studied about the geography of
this World at our University.
When we make a query onto ourselves, our thoughts stem from our memory about the subject
involved. Those thoughts lead us to actions. This is quite natural and that is the very purpose of
our memory. But our thoughts need not be restricted to the box of our memory. If we do that
alone (Thinking within the box) then there will be not much difference between animals and us.
We learn from what others have experienced. That is what happens in schools and colleges. All
this goes on to get added to the box. When it comes to making a decision of to do or not to, we
use this box. Even when we have to pick a choice from the few alternates before us, we use the
info available within this box and think. Our actions follow the thoughts that we have produced.
What if we are able to think of something that is not inside our memory box?
Louis Braille, who became blind resulting from a childhood accident invented a new method
of writing and reading which does not require vision. It uses the Kinesthetic sense of the
humans to read and write. If the alphabets were to be made into solid blocks of wood of
steel, it will require vast space to even depict one page of a literature, but Braille system
made it possible within one or one and half a page.
Somebody else thought this “If rotating a fan can produce wind, why not use wind to rotate
the fan? The result is “Wind mill”.

5. But you will find that very rarely people would venture to think out of their boxes.
1) May be that is the way we have been conditioned while growing up. Conformity was praised
and variant behaviour was admonished and punished. Questioning led to getting the title
“Rebel”. This conformity has designed a pattern in our thinking and acting. That makes the
box stronger like an impregnable fortress.
2) Fear of Failure (Risk). Trying something new is risky. When we repeat the same actions the
results are predictable. We have been brought up in a culture of “Not allowed to Fail”. Even if
you do not attempt, that is excusable, but failure, NO. The systems of examinations, the
competitions in the sports arena all have developed a feeling of “to fail is a shame.”
3) Fear of ridicule. When someone suggests something that we have never done in the past, the
general reaction is to call him “mad”. So people do not want to get that coveted title “mad”.
4) Fear of the unknown (Familiar zone to Strange zone) We have a sense of security in the known
area, but when we venture into an unknown territory, fear grips us. Our known area is our
comfort zone. Stepping out of it is as if stepping into a black hole.
If these are sample reasons of not being creative as an individual, this list for organisational
participants is a little longer
5) Hierarchy: Only the boss will speak. He knows everything. Even to offer an idea, by other will
be tantamount to disobedience.
6) EGO: This does not permit anybody else’s idea as acceptable. For if I accept that idea, then
the question arises, why I couldn’t think about it?
7) Groupism: The division amongst the teams based on their functional areas, was to improve
their efficiency and to rise as experts. But many times in organisations these teams are so
loyal to their teams, that they ignore the common good for the whole organisation. A result of
this loyalty is to oppose anything suggested by the other group, however beneficial it can be.
Use all logic to block that idea.
8) Restrictive atmosphere. An atmosphere where new ideas can not flourish. For example
schools. When a student finds another way of answering the question, he is corrected and
told that there can be only one correct answer and that is already written in his book and let
him not use his brain to find something new

6. When a new idea is presented in a group, you will find some spoilsports in that crowd, who kill the
idea on the table so that it does not even go out of that room. They will instil fear in all about the
likely failures and risks. They love status-quo and they live in their past. Constraints of lack of
money, lack of manpower and other issues will be their weapon to kill the idea.
More than any time in the past, Businesses need creative thinking for the whole of their teams.
1) To differentiate themselves from the crowd.
2) Pressure on Cost and resources
3) Escape work fatigue
4) Problem solving
5) Scale-up Astronomically
6) Spontaneity
Let’s look at the first point mentioned above, “To differentiate themselves from the crowd”.
Markets have become crowded places now. No, not the crowded with buyers, but crowded with
products. Each one of the manufacturers has to share the purse of the consumer. With the
information explosion and the mechanisation of labour, the volumes produced and consumed in
today’s world have become enormous. There are multiple options available to the consumer for
the same need. At times even thousands for the same type of product. As a manufacturer it
becomes essential to gain a special mind space of the consumer or else he looses his customer
in this manufacturers crowd
There are primarily 6 spectrums in which a provider can differentiate himself.
SPECTRUM CRITERION
1 PRODUCT Usages, Features, Performance, Durability,
Reliability, Warranties.
2 SERVICE Ordering ease, Installation, C’Training,
3 CHANNEL Coverage, Expertise, Ease
4 RELATIONSHIP Responsiveness, Communication
5 REPUTATION Advertisements, Communications
6 PRICE Segments, Value additions

7. One good example of the product differentiation to lead the market is the case of “Blyth inc.” the
candle manufacturers. By differentiating and re-differentiating its products, Blyth has been able to
grow from a $2million U. S. Producer of candles used for religious purposes to a global candle
and accessory business with nearly $500Million in sales and a market value of 1.2 billion. Not bad
for a company in an industry that as CEO Robert B George’s says, “has been in decline for 300
years”
The company studied the usage of candles. They understood that a major major segment of
purchasers are using it for religious purpose. Their team then started pondering. Can we get them
to use candle in other ways also. The result is:
You would have noticed that they changed the candles’ usage in many ways. They made it a
fragrance of choice, Design of choice (ornamental). Even the process of producing as “Organic”,
environmentally concerned.
A redesign of this scale can not happen at the board room only. It can happen only with the whole
team getting engaged in creative thinking process and also at every stage of execution of such
ideas.
We will continue discussing on this in our next issue also. Please stay in touch.

8. GURUS SPEAK

9. WEALTH THAT GROWS AND LASTS FOREVER
PRINCIPLE NO: 6
“FINANCIAL PYRAMID”
“PROTECTION- THE FOUNDATION”
HOW TO DO A CAPITAL NEEDS ANALYSIS?
continued from the previous issue:
gopinathr@go-past.com
One of our readers had asked me by email, “How to do a comprehensive capital need analysis for
a client, so as to advice him about the life insurance cover that he should be availing?”
So while on the topic of financial pyramid let me answer this question that will fit into the bottom
of the financial pyramid namely “Protection”.
There are four types of capital requirements:
1) Working capital
2) Fixed capital
3) Reserve capital and
4) Borrowed capital.
Working capital is the one which is used for day to day working purpose in a corporate body. In
the same way, for families it is the money required to meet the on-going essential expenses
month on month (Like Food, School fees, Rents, Maintenance charges, Salaries to maids, drivers
and other assistants etc)
Fixed capital is the one that is used for assets that are used long term like the land, building,
plant, machinery etc. In the same way, for families it the money required to meet big one time
expenses like the Admission fee to professional studies (Capitation fees), Admission fees for
overseas education, The grand auspicious marriage of children, the money to be provided to
children for starting a business venture if they so desire (Settling down) etc.,
Reserve capital is the one that corporate bodies set aside to meet unforeseen emergency
requirements. In the same way the money required to meet emergency demands like a brief
hospitalisation etc.
Borrowed capital is the one that the corporate body has availed as loans from banks or other
institutions, which they have to repay. In the same way the housing loans, other mortgage loans,
Credit card outstanding, personal borrowings etc that a family owes to others will come under this
category.
To etsimate a comprehensive capital need we need to consider the present value of all the future
requirements under the four heads.

10. Let me show this by a real life case that we had got to handle recently:
Dr. Kumar is 38 years old now. He is an Orthopaedic surgeon, earning an average of `. 300000
every month nett. Mrs. Kumar, is taking care of the house and is also actively engaged in an NGO
as an Honorary Director. The couple has two children - Ms. Aparna, 8 years and Ms. Alka, 2 years.
They can spare about `. 25000 for saving every month. The balance is consumed in life style
after paying out `. 75000 towards EMIs for their outstanding loan on Car, House & other
Personal Assets.
Total Liability is `. 10000000 .
They want to give the best education and support extra curricular activities of their children.
Basis for Calculation
Inflation: 6 % ( This is to escalate regular on-going expenses year on year)
World Class Education:
First Child in the year 2032 = `5000000
2nd Child in the year 2038= `5500000
Grand Auspicious Marriage:
First Child in the year 2039 = `8000000
2nd Child in the year 2045= `8500000
PV Factor: 4 % (This factor is required to estimate the amount of money required today to meet all
the future cash outgo)

11. Working capital World class Education Grand auspicious Marriage Reserve Capital
Borrowed capital
`10,65,32,914

12. Year Working
capital
World
class
Education
Grand
auspicious
Marriage
Reserve
Capital
Borrowe
d capital
Total year wise
2018 2400000 1000000 10000000 13400000
2019 2544000 2544000
2020 2696640 2696640
2021 2858438.4 2858438.4
2022 3029944.704 3029944.704
2023 3211741.386 3211741.386
2024 3404445.869 3404445.869
2025 3608712.622 3608712.622
2026 3825235.379 3825235.379
2027 4054749.502 4054749.502
2028 4298034.472 4298034.472
2029 4555916.54 4555916.54
2030 4829271.532 4829271.532
2031 5119027.824 5119027.824
2032 5426169.494 5000000 10426169.49
2033 5751739.663 5751739.663
2034 6096844.043 6096844.043
2035 6462654.686 6462654.686
2036 6850413.967 6850413.967
2037 7261438.805 7261438.805
2038 7697125.133 5500000 13197125.13
2039 8158952.641 8000000 16158952.64
2040 8648489.8 8648489.8
2041 9167399.188 9167399.188
2042 9717443.139 9717443.139
2043 10300489.73 10300489.73
2044 10918519.11 10918519.11
2045 11573630.26 8500000 20073630.26
NPV= ₹106,532,914.45

13. So as you see from the table above Dr Kumar will require a Life insurance cover of 10.66C less the
sum covered in the existing life insurance policies

14. CATERPILLAR SPACE

15. BY Mr Thirulok Kumar Agent from Bangalore

16. This picture was drawn in half and hour time by Master Sohan Rajesh Samant S/O Mr Rajesh
Samant Agent from Dadar Mumbai
GALLERY
Proud to carry this picture drawn by a
10 year old talented boy

17. SIXER Session participants: UMs/AMs/BMs and TMs of SBI Life

18. Sourcing of HNI Prospects
group work by Transformer
session participants

19. a