The Hindu Business Line : Read the fine print

It was that time of the year again. Many people met many more people in solemn sessions and made many suggestions to one man. Elliptical and obscure arguments were made for doing this and for not doing something else. There was a frenzy of giving inputs on all matters. Speculation was rife as to the likely outcome; the only thing missing was for some enterprising bookmaker to announce the odds on the outcomes. The day dawned and the man under siege came to the noble hall a nd said: “Speaker sir, I rise to present the budget ...”

One more budget, one more orgy of TV overkill analysing it. There were the usual shots of the captains of industry giving their instant analyses. There were the pictures of the opposition leaders and spokespersons doing verbal callisthenics to find the chinks in the budgetary armour. Then, there were the economic sages delivering their best “on the one hand, on the other hand” viewpoints, Dalal Street denizens voting with their terminals and lastly the aam aadmi’s voice putting forth their concerns. A scene that we have seen played out for many years now. Invariably, the next day, everyone starts singing a different tune saying that everything depends on the fine print in the Finance Bill. One is thus forced to ask the simple question: How come everyone forgets the fine print that exists in plentiful measure in every budget and still feels it is OK to comment based on partial facts?

We see the phenomenon play out in our daily lives too. We all know the propensity of companies and the corporate lawyers they employ to add fine print to every contract, every document that they deal with. The question to ask is: What is the motivation behind such verbiage?

It is perfectly in order and understandable if clauses in fine print protect the company from malicious and wilful action from its customers, but it is completely unacceptable if the intent is to wriggle free from issues that its customers can legitimately bring to its notice for suitable redressal. At the end of the day, while such caveats can give an illusory sense of protection to a company, it is a sure-fire way to turn off customers and lead to diminished trust in the company and consequent brand erosion. Practices by Indian companies make us the world champions in wriggling out of even normal obligations to customers. The classic tag line in most of the invoices by commercial establishments in India says it all: “Goods once sold, will not be taken back.”

We all know and pay daily ritual obeisance to the theory that people are the biggest assets of any company. The moot point is how much effort is being taken to make sure that communications to employees are clear and without fine print — stated and perceived. If we examine our hearts, most, if not all, of us will agree that this is an area that is still work-in-progress and that much more needs to be done.

This process of fine printing starts from the time when someone is being interviewed and continues after one joins the system. Facts are finessed and nuanced statements are made that leave them open to scrutiny and (mis)interpretation at a later date. This most often leads to dysfunctional situations. The best way to minimise this problem is probably to be transparent in one’s communications so that the stated words are clear and leave little room for Freudian analysis of the unstated words. The hope is that people will read the lines and not start off by reading between them.

At this point it is legitimate to ask: “How transparent should one be?” The law of transparency will need to be balanced by the need to know principle. We can be transparent to the level that each situation calls for and based on the maturity level of those whom we are addressing. The truth test is our own inner fairness gyroscope that prevents us from tilting excessively one way or the other. In time, if this is done right, the trust that people develop in the other person will help them to accept the levels of transparency that are being displayed. It is best that the fine print be minimal in any contract. In any event, the fine print should be balanced by fair and equitable behaviour on a consistent basis that has an element of flexibility to cover unique situations.

Always read the fine print

(The writer is advisor to 3i Infotech, Manipal Education & Medical Group and IDFC Pvt Equity.)