A peculiar and persistent dilemma in business is “How transparent can you be?” Sure “truth always prevails”, but do true intentions count more than true statements. Should one sugar coat the truth, so that true intentions prevail in the end?. It is this dilemma that R.Murali a financial consultant and a business counsellor tries to address based on what he has seen and learnt in business life.

To bluff or to be blunt is a dilemma in business. To succeed in this world, one has to know both and also to use them appropriately. This has been and will be the dilemma irrespective of the times we live in. In business it is common and required to do both and most successful businessmen are the ones who have mastered the art of bluffing and being blunt. The ones who fail are perhaps those who are yet to master this. The first line I remember to have read in management study material was a question, “Is Management a Science or an Art?” Afterety. Something inherently wrong will definitely get discarded with time.

Sometimes situations warrant a bluff to save a business especially with the financiers and bankers who are mostly rule bound. I would suggest this if it were to be used only as a temporary compromise if the situation can be rectified without much damage later if it comes to be known. Being blunt and plain also helps with bankers especially when we have no choice except to seek their total support and any further bluff would be to our disadvantage. Most entrepreneurs in the small and medium sized enterprises suffer because of the lack of this smartness and the big ones any way get along by their sheer size and exposure. The golden rule is, bluff to a limit and be blunt to a point.

Successful marketers would confess that they bluff more than being blunt. The bluff here is for his survival and even if he knows the competing product in the market place is more worthy, he has no choice except to sell his product somehow and being very true to the customer would pack him home. At the same time bluffing about a product, which is inherently bad, will close his shop sooner than later.

Though it is accepted that bluffs are part of business building, it pays to do so very rarely. Being plain and simple would be most desired in all the circumstances. People value transparency and honesty. The new economic order and globalization has increased transparency and the market rewards are more to the true than to the bluffers, which again calls for mastering the art as mentioned above to fineness.

Most of the businessmen I have come across prefer to be plain and straightforward but the systems, laws and other circumstances sometimes compel people to bluff for survival. Sometimes, the advice sought is only as an approval for the bluff and it is sad that most issues in the legal and business world are not yet addressed to make the system simple and straightforward.

This is the year-end time for finalizing the financial statements and most of the businessmen would be caught in the dilemma of reporting their true financials. It would be very difficult time to balance the balance sheets keeping in mind the bankers, investors and above all the taxmen. Also the laws and regulations, accounting and reporting standards would call for a fine balance of this trait.

Though this art of balance between truth and bluff is not taught, it can be learnt and even our puranas have many stories to suggest how to implement the skills in use of bluffs to advantage and they do not suggest against their use if they can be used within certain moral limits and harmless ways.

(The author Murali is from DoMore Financials & consulting (P) Ltd., which provides financial counseling and a helping hand for all financial needs. For feedback send mail to domore@businessgyan.com his contact information is in page 67)

Issue BG24 Mar03