The news about Nandan Nilekani being given the responsibility by the government to roll out biometric ID cards to all citizens of the country is something fantastic to cheer about. That the PM himself invited the industry stalwart is in itself a big indication that the government has no hang-ups about joining hands with the private sector for the larger good of the country.
Very positive event that needs to be aptly celebrated. Good things in store for the nation!!
Saturday, June 27, 2009
Sunday, June 21, 2009
Recipe for America
The American economy is in a mess. And it is directly impacting the lives of many, many ordinary Americans. Jobs have been lost and value of assets has crashed. People are looking at a scenario which is unprecedented. Many don’t have a clue on how to react to the situation. As a result, free advice is pouring in from all parts of the world. And here are my two cents on what America should do to get back in shape.
But before that, let us first spend a few minutes on analyzing the situation. My opinion is that the average Joe has been suffering from the complacency of affluence. Over the centuries, Americans have kept improving their standard of living. Comforts and luxuries are being taken for granted; they have become more of a right than something that you actually earn. Not having the money to afford them is hardly a problem. Don’t have money in the bank account? No problem. Use your credit card!!
My reading of the situation is that citizens of once the most enterprising country have decided that they have progressed enough and are ahead of most of the other countries. Now is the time to enjoy the fruits of your grandfather’s labour. No need to work hard, no need for a higher education…..just enjoy life.
Americans strive to keep manual thoughtless labour completely out of their lives. Build machines to get the labour done, outsource manufacturing and services to other countries, just consume the goods that you have come to “deserve” by virtue of just one thing – being an American citizen.
Just look at any job where manual labour is required and you will get my point. American taxis are horribly expensive. Want to get a haircut? Pay through your nose. Why are counters at airlines, baggage check and malls all populated by African-Americans or Asians?
Next, let’s look at higher education. Dropout rates are legendary. And higher education is so expensive that not many would simply be able to afford it. The moment you decide to quit studying, you immediately reduce your chances of getting a decent job with a fat pay. The only way to earn money would be to get into a trade a small business or a low paying job. But that is something that one doesn’t want to do, right? There are lesser mortals ready to do it, so why bother. Just focus on enjoying life. The bigger television, the faster car, the more spacious home.
Someone once told me that America is on the path of becoming the thought leader of the world. People will spend their time (and earn money) just thinking. They would be masters in the subjects of design, ideating, brainstorming. And they would leave the execution of those ideas to the third world nations.
However, in reality it is not that simple. Civilizations have routinely gone through cycles of prosperity and downfall. Look around and you will see many complacent peoples coming down very rapidly from the peaks of prosperity.
The solution is very evident. First and foremost, America will have to change its attitude towards work. No work is too small. Work never erodes the dignity of a person; in fact it gives dignity. But for that, one will have to reduce the premium that one charges on work. And for that to work, the overheads will have to reduce.
One of the biggest costs – that of real estate is already going through a severe correction, so that should be removed from this discussion.
The other thing that needs a lot of work is again related to the attitude towards work. People do not sign up for work till all personal compensation related issues are addressed. 401k, health plans, dental plans(!), the works. I am not saying that you open up yourself to be exploited. But for Pete’s sake, get real.
And this is one area where the administration can really chip in. Encourage people to open up their own businesses by reducing the license fee and other costs for setting up a business. Change zoning laws, get businesses closer to the residential areas so that mom and pop stores can thrive. Come down heavily on frivolous consumer lawsuits that scare the people from providing decent products and services. Make it easier for people to offer a haircut for a lower price and a cheaper cab ride.
The next thing big thing that needs to be taken care of is education. Especially higher education. I simply don’t get it as to why it should be so prohibitively expensive. Sure, large campuses and star professors add to the cost. Can one not look at smaller campuses which are more in an “economy” mode? And till the time the education costs go down, edu-loans are the only ones that people should be encouraged to tig thing that needs to be taken care of is education. Especially higher education. I simply don’t get it as to why it should be so prohibitively expensive. Sure, large campuses and star professors add to the cost. Can one not look at smaller campuses which are more in an “economy” mode? And till the time the education costs go down, edu-loans are the only ones that people should be encouraged to take.
We all know that the human spirit is unbreakable. Faced with any hostile situation, it usually finds a way of surviving – even thriving. Americans will bounce back faster than the world expects. The good thing is that there is a very competent President running the country at the time of this crisis. His initiatives are in the right direction; his emphasis on education, reducing health costs, etc are all moves in the right direction.
However, at the end of the day, it is up to the citizen to take the initiative and make sure that this results in a faster bounce back. The world is watching.
But before that, let us first spend a few minutes on analyzing the situation. My opinion is that the average Joe has been suffering from the complacency of affluence. Over the centuries, Americans have kept improving their standard of living. Comforts and luxuries are being taken for granted; they have become more of a right than something that you actually earn. Not having the money to afford them is hardly a problem. Don’t have money in the bank account? No problem. Use your credit card!!
My reading of the situation is that citizens of once the most enterprising country have decided that they have progressed enough and are ahead of most of the other countries. Now is the time to enjoy the fruits of your grandfather’s labour. No need to work hard, no need for a higher education…..just enjoy life.
Americans strive to keep manual thoughtless labour completely out of their lives. Build machines to get the labour done, outsource manufacturing and services to other countries, just consume the goods that you have come to “deserve” by virtue of just one thing – being an American citizen.
Just look at any job where manual labour is required and you will get my point. American taxis are horribly expensive. Want to get a haircut? Pay through your nose. Why are counters at airlines, baggage check and malls all populated by African-Americans or Asians?
Next, let’s look at higher education. Dropout rates are legendary. And higher education is so expensive that not many would simply be able to afford it. The moment you decide to quit studying, you immediately reduce your chances of getting a decent job with a fat pay. The only way to earn money would be to get into a trade a small business or a low paying job. But that is something that one doesn’t want to do, right? There are lesser mortals ready to do it, so why bother. Just focus on enjoying life. The bigger television, the faster car, the more spacious home.
Someone once told me that America is on the path of becoming the thought leader of the world. People will spend their time (and earn money) just thinking. They would be masters in the subjects of design, ideating, brainstorming. And they would leave the execution of those ideas to the third world nations.
However, in reality it is not that simple. Civilizations have routinely gone through cycles of prosperity and downfall. Look around and you will see many complacent peoples coming down very rapidly from the peaks of prosperity.
The solution is very evident. First and foremost, America will have to change its attitude towards work. No work is too small. Work never erodes the dignity of a person; in fact it gives dignity. But for that, one will have to reduce the premium that one charges on work. And for that to work, the overheads will have to reduce.
One of the biggest costs – that of real estate is already going through a severe correction, so that should be removed from this discussion.
The other thing that needs a lot of work is again related to the attitude towards work. People do not sign up for work till all personal compensation related issues are addressed. 401k, health plans, dental plans(!), the works. I am not saying that you open up yourself to be exploited. But for Pete’s sake, get real.
And this is one area where the administration can really chip in. Encourage people to open up their own businesses by reducing the license fee and other costs for setting up a business. Change zoning laws, get businesses closer to the residential areas so that mom and pop stores can thrive. Come down heavily on frivolous consumer lawsuits that scare the people from providing decent products and services. Make it easier for people to offer a haircut for a lower price and a cheaper cab ride.
The next thing big thing that needs to be taken care of is education. Especially higher education. I simply don’t get it as to why it should be so prohibitively expensive. Sure, large campuses and star professors add to the cost. Can one not look at smaller campuses which are more in an “economy” mode? And till the time the education costs go down, edu-loans are the only ones that people should be encouraged to tig thing that needs to be taken care of is education. Especially higher education. I simply don’t get it as to why it should be so prohibitively expensive. Sure, large campuses and star professors add to the cost. Can one not look at smaller campuses which are more in an “economy” mode? And till the time the education costs go down, edu-loans are the only ones that people should be encouraged to take.
We all know that the human spirit is unbreakable. Faced with any hostile situation, it usually finds a way of surviving – even thriving. Americans will bounce back faster than the world expects. The good thing is that there is a very competent President running the country at the time of this crisis. His initiatives are in the right direction; his emphasis on education, reducing health costs, etc are all moves in the right direction.
However, at the end of the day, it is up to the citizen to take the initiative and make sure that this results in a faster bounce back. The world is watching.
Friday, June 19, 2009
Change - The only constant
Probably the most overused cliché in the management world is that “change is constant”. And the reason that it is overused is that it is true.
Things keep changing all the time. Super powers give way to countries following a “Hindu rate of growth”. Industry leaders change, high growth sectors suddenly become duds. And yes, industrial standards get replaced.
As an individual, I love being proactive about changing the industry standards that apply to products that I use. Not that I am unhappy with the current one; just to see if I can still survive if I switch to a different product.
So, once, I decided change my business newspaper. I had been reading The Economic Times for ages – like everybody simply because it was the first option that comes to your mind. And now I am seriously exploring switching to Open Office from MSOffice. I have also downloaded Thunderbird to see if it can replace my addiction to Outlook. And I realized that I have been using Outlook for the last ten years!! And who knows, one day I might even switch to a Macintosh….
So, go ahead. Be the change agent. Change by choice rather than be forced to change. See how well you manage change. It may not be that difficult.
Things keep changing all the time. Super powers give way to countries following a “Hindu rate of growth”. Industry leaders change, high growth sectors suddenly become duds. And yes, industrial standards get replaced.
As an individual, I love being proactive about changing the industry standards that apply to products that I use. Not that I am unhappy with the current one; just to see if I can still survive if I switch to a different product.
So, once, I decided change my business newspaper. I had been reading The Economic Times for ages – like everybody simply because it was the first option that comes to your mind. And now I am seriously exploring switching to Open Office from MSOffice. I have also downloaded Thunderbird to see if it can replace my addiction to Outlook. And I realized that I have been using Outlook for the last ten years!! And who knows, one day I might even switch to a Macintosh….
So, go ahead. Be the change agent. Change by choice rather than be forced to change. See how well you manage change. It may not be that difficult.
Thursday, June 18, 2009
Looking into the Future
This happened around the same time last year when I was working for a very large company here in India.
I was working on a project that would be reviewed every week by our director – a charismatic and dynamic person. The meeting would be attended by several of his direct reports to discuss the progress of the project.
So, on this particular day, once everybody had settled in for the meeting, our director opened the discussion by asking a completely unrelated question to the 8 – 10 people present and going round the table seeking answers.
The question was very simple – “What, in your opinion, would be the level of the Sensex one year from now?”
Those would follow the Indian stock markets would relate to this easily. The stock market had started its downward trend and had fallen from a high of 20,000 to around 15,000. The global cues were very discouraging but most of us Indians were still in denial about the impact that the US problem would have on India. Most of us felt that the Indian economy would continue to grow, it was insulated from the global meltdown and that India did not have the housing mortgage problems.
So, when our boss asked the question, all the senior people started giving their best guess. To be fair to them, most predicted that the Sensex would be in the range of 12,000 to 15,000. Some gave a gloomy picture and probably one of them said that it would in the range of 18,000.
Now, that was a very brave thing to do for our senior officers. They had been put in a spot by their boss and they had to respond. With no knowledge of how things would play out over the next 12 months, they had to give an instant response. In the end, their responses were nothing better than a guess. And no better than any ten year old’s guess.
None of the respondents had the courage to say that they were not equipped to look into the future. Or that they simply did not know. Everybody responded with so much confidence that you would have believed that they knew. Looking back, some of them were right about the index level. After all, the index is around the same level as last year. But boy, what a ride this has been. I am sure none of the bright officers in the room that day had any inkling of what the next one year had in store for us.
But for a moment, please step back and look at what happened that day. CEOs, Directors, powers that be are asked questions about the future ten times a day. In fact their job is to shape the future to mimic their imagination. They would not be eligible to be CEOs if they were unable to tell us what the future looks like. And we lay people lap up whatever they say as the gospel of truth.
So, next time you see some big shot predicting the GDP growth rate, inflation, crude price or the sensex, take it with a pinch of salt. And don’t forget to get a validation from your ten year old.
I was working on a project that would be reviewed every week by our director – a charismatic and dynamic person. The meeting would be attended by several of his direct reports to discuss the progress of the project.
So, on this particular day, once everybody had settled in for the meeting, our director opened the discussion by asking a completely unrelated question to the 8 – 10 people present and going round the table seeking answers.
The question was very simple – “What, in your opinion, would be the level of the Sensex one year from now?”
Those would follow the Indian stock markets would relate to this easily. The stock market had started its downward trend and had fallen from a high of 20,000 to around 15,000. The global cues were very discouraging but most of us Indians were still in denial about the impact that the US problem would have on India. Most of us felt that the Indian economy would continue to grow, it was insulated from the global meltdown and that India did not have the housing mortgage problems.
So, when our boss asked the question, all the senior people started giving their best guess. To be fair to them, most predicted that the Sensex would be in the range of 12,000 to 15,000. Some gave a gloomy picture and probably one of them said that it would in the range of 18,000.
Now, that was a very brave thing to do for our senior officers. They had been put in a spot by their boss and they had to respond. With no knowledge of how things would play out over the next 12 months, they had to give an instant response. In the end, their responses were nothing better than a guess. And no better than any ten year old’s guess.
None of the respondents had the courage to say that they were not equipped to look into the future. Or that they simply did not know. Everybody responded with so much confidence that you would have believed that they knew. Looking back, some of them were right about the index level. After all, the index is around the same level as last year. But boy, what a ride this has been. I am sure none of the bright officers in the room that day had any inkling of what the next one year had in store for us.
But for a moment, please step back and look at what happened that day. CEOs, Directors, powers that be are asked questions about the future ten times a day. In fact their job is to shape the future to mimic their imagination. They would not be eligible to be CEOs if they were unable to tell us what the future looks like. And we lay people lap up whatever they say as the gospel of truth.
So, next time you see some big shot predicting the GDP growth rate, inflation, crude price or the sensex, take it with a pinch of salt. And don’t forget to get a validation from your ten year old.
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