Filter Coffee #138

On Diligence & Intelligence

From Atlanta GA

I got the OK from many readers about my post, and they were happy to have a truck with me. Here are some comments:

• Sunita says: "'It’s a call for other drivers to honk their horns when overtaking the truck; a long-standing tradition on Indian roads. Depending on which region they’re from, you’ll see Hindu, Muslim, Sikh, and Christian iconography,' said photographer Dan Eckstein, who travelled over 10,000kms of the country for his book Horn Please: The Decorated Trucks of India. The richly painted exterior, with images of gods and goddesses, Bollywood stars, and political logos, say much about the person behind the wheel. It’s a job which entails long months on the road, and these hefty vehicles transformed into mobile homes away from home, kitted out with bunk beds and photos of loved ones far away. Since they’re missing their kids and wives, they like to decorate their trucks with ornaments to remind them of home."

• Commander V K Santhanam says: "India is one of few countries where we have messages behind buses and lorries to Sound Horn. Other countries do not honk unless they see some indiscipline in the road. Horn OK Please is possibly a note of caution to others by truckers after they have had a good fill in a dhaba."

• Preeta Arun says: "Trucks bring to mind the sleek container monsters who hog the roads, and overtaking them seems to take forever! Throughout which time, I keep hoping the container will not slide off and crush me!!! Our own Desi-made lorries are what my heart goes out to, with all their decorations and colourful paintings and amusing messages. These usually have a young lad in the passenger seat who believes himself to be the indicator of the lorry. His arm and shoulder hang out of the window as he bangs the door on the outside and makes frantic gestures to let you know that this lorry will now turn whether you want it to or not. This boy is a very important member of the lorry crew and is known as cleaner or Kili for short. He takes care of the truck and the driver on long trips. But the important point here is that these lorries and the drivers are the ones you don’t want to have no truck with while on the highway."

• Swati Belur says: "Reading about trucks brought me a sudden flashback of our road trips when the kids were little… the kids had composed this song and every time we passed by a truck they would go 'you gotta duck when there comes a truck.' and both would duck into their seats😂”

💭 Diligence & Intelligence

Are these two words synonymous, or are they two different attributes in a person, which at best may compliment each other?

Intelligence is the ability to acquire knowledge and certain skills. But that’s not enough. The ability extends to applying that knowledge or using those acquired skills to accomplish something. In the military or secret services parlance, intelligence means the collection of information from certain sources or other means which can be of value in more ways than one. It could be of immense value to the military and other State intelligence agencies. It could also be to unearth or discover information that is of great value and relevance in any given context.

It is the latter meaning of intelligence, relating to collection of information or data, that ties in with diligence in a complimentary way. Being intelligent is not enough. Using it to collect information from known or unknown sources, and setting up systems and processes for collecting data which can have a bearing on making decisions makes intelligence an essential ingredient of diligence.

As an in-house counsel, I realised the importance of due diligence in a variety of corporate transactions. Is there a subtle difference between diligence and due diligence? Yes, to the extent that while diligence is an all encompassing degree of care, due diligence is about the extent of care to be exercised in a given context. Simply put, the diligence that is due in a given context.

If you are keen to become a doctor, completing the course diligently is indeed essential, and there are no defined boundaries of that diligence. You were intelligent enough to get good grades in order to get a seat in a medical college, but the diligence that you exercise in studies may make you a successful doctor who makes intelligent and informed decisions as a practitioner.

As an in-house counsel, if I am told that an acquisition is being undertaken, I would foresee the clear need to carry out legal, financial, technical, business, intellectual property, human resources and certain other kinds of due diligence which in essence constitutes the process of gathering all the information needed to identify the risks and validate the cost of that acquisition. The intelligence that different teams gather helps identify the value enhancers and the value depleters.

In our ordinary life, we have to exercise due diligence, and the degree of diligence depends on factors that are relevant. Buying a second-hand car, which used to be referred to as a used car and which is now referred to as a ‘pre-owned car’, requires careful consideration of all aspects, and you may well need a car mechanic to make sure you not only get value for money but also get the car that you want.

In an arranged marriage, both the families conduct their own due diligence which may well include matching the horoscope, enquiring about the family, ascertaining the financial position, education, employment and various other aspects. The success of a marriage is dependent on how the two families come together and how the married couple respect each other and give each other the space each one needs. Due diligence in matrimony may help in deciding to consummate the alliance, but beyond that, the success of a marriage is dependent on maturity, compassion and respect that the spouses have for one another. In November 2020, in one of my early posts, I had discussed the topic of marriage. Please do give it a read if you wish using this link 🔗Filter Coffee #019 - by M R Prasanna

Due diligence is a must when you give or take a property on lease or on a leave-and-licence basis. One can be in a lot of grief if such transactions are done on mere good faith or blind trust. You can gauge the complications that arise if you give this post a quick reading using this link 🔗Filter Coffee #035 - by M R Prasanna. A higher level of due diligence is warranted when buying a property. While you may have sufficient touch points to negotiate the price, if you fail to undertake a comprehensive title verification, your investment may well be doomed.

In the case of consumer goods, the level of due diligence may be less intense as you will be relying on the literature, the guaranteed performance and various other inducements that prompt you to buy a product, particularly white goods or the consumer durable items. While the buyer should beware (caveat emptor) of the consequences in real estate deals, the same is not the case in the case of consumer goods, where the vendor should be aware of the consequences of mis-description or misrepresentation of the merchandise he sells. This is not to undermine the customer’s duty to be vigilant and make all possible enquiries as are within his or her competence. Give one of my very early posts a look when you get a moment: 🔗Filter Coffee #004 - by M R Prasanna

In matters of employment, due diligence does play a vital role, particularly when you are contemplating a job-change. As one gains experience and stature, compensation becomes secondary and career prospects take the front seat. Is the new job within your competency matrix? What are the likely performance enablers and more importantly, what are the performance inhibitors? The recent spate of lay-offs are an indication that choosing a job is not risk-free, but you should do what is possible to make your position risk averse. Difficult but not entirely impossible.

Any which way, the essence of due diligence lies in asking the right questions and not a roving enquiry that smacks of a suspicion leading to dislike and distrust as well. There lies the art of intelligent questioning.

Intelligence is a product of study, observation, evaluation, analysis leading to assimilation of knowledge, skills and experience. But most will agree that intelligence is a pre-existing state of mental acumen and each time that intelligence is meaningfully deployed in a due diligence exercise, not only it helps you draw certain tangible inferences but also elevates your intelligence to the next level. The mind becomes active both at the conscious and the subconscious state, bringing to sharp focus its inquisitiveness and instinct, which together make the due diligence process productive.

The topic has immense potential and the discussion can be endless. It is all about asking the right questions. Here’s how, but on a lighter note:

Q: Do you sell coffee and tea?

A: No, we sell only tea.

Next day:

Q: Do you sell coffee?

A: If you come again asking the same question, I will throw a spanner at you.

Following day:

Q: Do you keep spanners?

A: No

Q: Do you sell coffee?

See you next week. Take good care of yourself diligently 😀