Leap Year Boy

29th of February!!

The long wait for a birthday is finally over.

But why do I don't have any special feeling? Is it because one doesn't want to have a birthday when one is past 40?

44 years ago when I was born, parents would have had lot of expectations of me. Have I fulfilled them all? Can't even find out now as it is too late, for the parents are no more, for the first time since I was born.

A birthday,that too one that comes once in 4 years, is a nice time to take stock.

What could I have done better? More ambition? Less of laidbackness? More networking? More aggressive pursuit of career goals? Have I utilized the god given skills to the fullest extent? Am I an underachiever?

But then on the flip side, I have been fairly content. I am at peace with myself. I have created a small niche for myself in this world. And more importantly I have lived my own life without being dictated to.

The trick of being happy in one's life is to manage the expectations. I have made a conscious effort to do this during the period between the last birthday and this. And I am a much better person. The last four years have also made me more accommodative. A veil of serene detachment has fallen over me. And oh yes - I finished my M Phil during the intervening period.

What is in store for till the next birthday? Frankly I have not thought of it. But one thing I have in mind is that I would love to address you again through this blog on my next birthday and would like to sign off as Dr.Rajan Venkateswaran

One can dream after all! That is what birthdays are for.

I also bow my head in prayer to the Almighty for allowing me to be what I am. I wouldn't want to be anyone else.

Highlights of Indian Economic Survey 2007-08 (with my comments)

The highlights of the Economic Survey of India 2007-2008 tabled by the Finance Minister in the Parliament is given below with my cryptic comments in brackets;

Economy slows down to 8.7% in 2007-08 (Still a good growth. Could have been better but for lack of political will. The tricky issue is to evaluate how inclusive the growth has been. It is a known fact that the poor have not benefited at all. The trickle down philosophy of the PM and FM has not worked)

Inflation projected at 4.4 per cent in 2007-08 (Ground reality is different. The inflation of essential commodities are much much more that 4.4%. Government is fooling itself and the people if they are to trot out this figure)

Holding 9% growth a challenge, two digit growth even greater (No initiatives taken to even attempt this. The next government will bear the brunt of the omissions of this Government. We may see a period of slower growth in the region on 7% especially in view of higher energy prices)

Inflation and infrastructure biggest growth challenges (When was it not? So what is new? And what have the government done to tackle this?)

Skill dearth causing attrition, wage hike; pushing inflation (What else can one expect than skill dearth, considering the shambles in which our education system, especially the higher education finds itself?. Inflation because of this? This has to qualify as the best joke of the year)

Farm growth in FY'08 seen at 2.6%, against 3.8% a year ago (This is indeed a major cause for worry. The comfort of food security is a thing of the past. We are falling into a trap of food import which benefits only the multinationals)

Foodgrain output seen at 219.3 MT against 217.3 MT in FY'07 ( Something the government should have tackled on a warfooting, has been neglected by the pro business PM and FM. Aam aadmi be damned)

Acceleration in domestic investment, savings drove growth (This is a welcome sign, though I still believe it is the FDI that is driving the growth. And what about domestic consumption? The highlight is silent on this. Strange)

Macroeconomic fundamentals continue to inspire confidence ( Umm........confidence to whom?)

Investment climate full of optimism ( Same comment as above )

Industrial growth slower at 9% in first 9 months of FY'08 ( Why? And this contradicts the previous two statements. Farm sector down, Industrial growth slower and the Government want us to believe the Economy is all hunky-dory. Come on!!)

Costly rupee, sluggish consumer goods and infra a concern ( Exports in trouble because of costly rupee. But here at least the correction was over due and exporters have benefited at the expense of others for a long long time. It is pay back time. See earlier comments for the other two points)

Rupee rose by 8.9% against USD during current fiscal ( See the above comment )

Average credit growth slowed to 26.8% in FY'07, down in '08 ( Again a cause for worry. Means the economy is slowing down and the effect will be felt in 2008. Have to lay the blame squarely on the high interest rates )

Forex reserves up by $91.6 bn to $290.8 bn on Feb 8, 2008 ( High forex reserves are no longer the comforting cushion it was. It is a drag as the reserves earn low returns. We are subsidising other countries indirectly)

GDP projected at Rs 46,93,602 crore (mkt price) in 2007-08 ( That is a natural growth )

Inflation reined despite higher commodity prices & surge in capital inflows ( I beg to differ )

Growth deceleration spread across most sectors, barring power, community services and composite category of trade, hotels, transport and communications ( As I said before, definite signs that Economy is slowing down)

Capital inflows rise to 7.7% of GDP in first half of FY'08 as against 5.1% in FY'07. FDI inflows reach $11.2 bn, outward investments surge to $7.3 bn in April-September ( Some positive signs at last but too little too late)

Exports reach $111 bn in first 9 months of FY'08; Imports grow 25.9% ( Higher import growth due to high energy prices )

Surge in capital inflows, including FDI, to continue in medium term ( Are they being channelled in the right direction?)

Complete the process of selling 5-10% equity in previously identified profit making non-navratna PSUs ( Why has this not been done so far? And pray where have the government invested the previously accumulated wealth from disinvestment? Has it gone to meet the burgeoning expenses? Definitely yes and that is poor economics)

Phase out control on sugar, fertiliser, drugs ( Wishful thinking. No government has the will to tackle these. Drugs? Already the drug prices of life saving drugs are a cause of concern. With public health in shambles, the poor will suffer for want of medical care )

Sell old oil fields to private sector ( Long overdue considering the inefficiencies of the public sector )

Allow a share for foreign equity in all retail trade ( Don't think this government will be able to push this through and frankly this is not a priority area )

Raise foreign equity in insurance to 49 per cent ( 49% doesn't make any difference. Will ultimately benefit foreign insurance swindlers. The insurance company story is for another time)

Allow 100 per cent FDI in greenfield private agri banks ( And mortgage our ailing farm sector to foreigners? Why can't government channel rural credit through an elaborate micro finance network?. That is the need of the hour)

Increase work week to 60 hours from 48 hours and daily limit to 12 hours. (Fat chance this will happen. All the government has to do is limit the holidays to 12 per year. We as a nation work too less)

The economic survey has just highlighted the haplessness of this sick government which has been on a comatose situation for the past 3 years.

Let me borrow some phrases from the past and address it to our honourable PM and FM,

"Is there a Man amongst you that has the least care for the Good of the Country? You have sat here too long for the good you do. In the name of God, go!''

When I asked god for strength....................

"When I Asked God for Strength,
He Gave Me Difficult Situations to Face

When I Asked God for Brain & Brawn
He Gave Me Puzzles in Life to Solve

When I Asked God for Happiness
He Showed Me Some Unhappy People

When I Asked God for Wealth
He Showed Me How to Work Hard

When I Asked God for Favors
He Showed Me Opportunities to Work Hard

When I Asked God for Peace
He Showed Me How to Help Others

God Gave Me Nothing I Wanted
He Gave Me Everything I Needed" - Swamy Vivekananda

Management by Exception

Management by Exception is a management style where the managers intervene only when their employees fail to meet their performance standards. If the work is getting done as required, the Managers will not interfere. On the contrary, they will necessarily intervene and set right things if things were falling apart. This also means that the Manager has to intervene when work is not carried out ethically or whenever he sees a injustice being carried out.

MBE is hailed as a management style or belief that gained prominence in the late 20th century. But this is not something quite new to Indian Culture,

"Yada Yada Hi Dharmasya
Glanirva Bhavathi Bharatha,
Abhyuthanam Adharmaysya
Tadatmanam Srijami Aham'.
-Bhagavad Gita (Chapter IV-7)

Thus spoke Lord Krishna to Arjuna in Bhagavad Gita. A loose translation will read as "Whenever there is decay of righteousness and a rise of unrighteousness then I manifest Myself!"

Is this not Management by Exception??

Memoirs of a bygone era

My grandparents house was in an 'Agraharam' in Kollengode in Palakkad. Houses in a row on both sides of a private road with common walls and a temple at one end. A total of 64 families lived in the agraharam. One thing that struck me was the huge centre hall in the house with the roof open in one corner allowing rain water and sun to come in unhindered. The rain water was stored in a tank in the front hall. Another thing of note was that the front door was never locked. People can walk in at random and they in fact do. Also there was a small varandah outside the house made of bricks where anyone can sit or even sleep in the night. This is where as a child, I met and talked to lot of interesting characters. The fortune teller with a parrot, the wise old brahmin who used to regale me with stories, a middle aged eccentric man who talked fluently about philosophy, the gypsies who travelled extensively selling bangles and so on. No one was turned away and a cup of buttermilk or water or coffee or lunch was always made available to the guests. The only thing that irked me was that my Grandparents being traditional, would not allow non brahmins inside the house.

Years rolled by. My parents set up their own nucleus family. The house was stand alone with a separate courtyard. There was a huge front gate and a large front door. It was as if making a statement that we want to be away from the society. In fact the society had by then become much more unsafe. There was a need for the house to be secure. Still, the doors were open throughout the day till 10 pm in the night. People were still welcome irrespective of the time of the day. My mother being a superb cook, always had something special for any guest. I could safely take couple of my friends home for lunch without prior notice knowing fully well that food for at least 2 extra people will always be available. But the open verandah which allowed total strangers to rest became a thing of the past much to my regret. But on one front we had made considerable progress. My father was liberal in thinking. So off went the culture of non brahmins not entering the house. All were welcome.

Today people live behind closed doors. They look through the peep hole to first check who has come and then cautiously open the door on a chain and do not even come out. The welcome with open arms has become a thing of the past. One can detect the displeasure on the hosts face if one goes unannounced. When even friends are not welcome can you imagine what is the status of strangers. Today young kids are told to be beware of the strangers and not to talk to them. The learning and the pearls of wisdom that the kids get from interacting with people of different nature is absent. So much the pity. Are we all living on gilded cages?

As the great malayalam poet Vallathol said,

"Bandhoora Kanchana Kootilanengilum

Bandhanam Bandhanam thanne paaril"

Loosely translated it means, though we might be in a golden cage, it is still a case of being confined with no freedom.

If this is progress, I would love to remain without it.

Be a step ahead

What should a company do to be a pioneer and be innovative? Let me reproduce from a nice article by Erich Joachimsthaler

"If a company is to truly hit the spot with innovation time and again with any consistency and wishes to achieve profitable growth and create an advantage, it must do three things,

First, it must understand the people it is trying to serve as the individuals they are -- apart from any connection or interaction with the company. That is, it must be able to temporarily forget and let go of its current business, strategies, products and brands as it observes how people (not just customers and potential customers) go about their daily routines. It must understand their behaviors in context, and develop a deep, inner conviction of the changing outer world -- an objective view of how changes in people's ecosystem of life affect that behavior.

Second, it must know how to go beyond its own perimeters of products, markets, and competencies; let go and challenge the assumptions, common practices and golden rules of doing business still held today: and go beyond what it has learned from consumers. Only then can it conceive of entirely new opportunities by innovating across those people's behaviors -- as Apple has done across the changing ways of how consumers buy and listen to music. It must know how to define the spaces of greatest opportunity that nobody has yet even imagined.

Third, it must see itself "from the outside in" and formulate strategies around people's behaviors, not just seek to satisfy consumer needs and wants or customer requirements. It must execute activation plans that engage consumers and seamlessly fit all kinds of innovations into peoples' and consumers' behaviors -- or a customer company's work processes -- so that the people absorb and assimilate them.

It must create transformational life experiences, not just communicate features and benefits. Only then can companies spot and consistently and successfully bring to market winning innovations, achieve profitable new growth, and reinvent their business for the future. This is not easy. But it need not be terribly difficult. The right instinct already exists in most companies. We are, after all, customers and consumers -- people -- ourselves. Managers must learn to protect and direct that instinct to lead, and embed it in the organization, despite, and along with, the nature and ever-growing complexities of business."

What is true of companies is true of individuals too. We need to keep innovative, pushing ourselves to the limits, enthrall our internal and external customers, make every meeting with other people a memorable experience, look for new frontiers and challenges.

Fault Lines in our Economy 1

Managing the economy that is as complex as India's is very complex. Many Governments have fallen flat on trying to kickstart the economy. True, we are maintaining a healthy 8% GDP growth. But the underlying cracks in the economy is slowly becoming fault lines. Any article about economy conventionally needs to have lots of macro economic figures. I shall not bore you with figures but rather take a simple, subjective in nature.

The biggest drawback is the delivery system. Only 10-15% of the intended amount for development and welfare programs reach the ultimate beneficiary. The balance is pilfered away by unscurulous elements in the beaureaucracy and politics. The saddest part is that this has been identified as a major factor for failure by successive governments but they have done very little. In fact the unscrulous elements are becoming bolder.

The current govenment administration system is cumbersome and a legacy from the British Raj mainly aimed at collecting revenue from the locals. It was never intended to serve the people. The beaureaucracy is bloated, unwieldy, unaccountable, corrupt and is a drain on exchequer. The earlier we reorganize and prune the administrative system, the better. This will also reduce the non plan expenditure which in some states have reached unmanageable proportions.

Spending on Primary Education as a percentage of GDP is one of the lowest in world. As a country boasting of prowess in knowledge management, this is totally unacceptable. There are children who do not have access to school and the drop out rate is very very high at the primary level. Even if schools are available, adequate infrastructre and teachers are absent. Result - students remaining illeterate in the true sense of the word. Illeteracy amongst the children has multiple consequences. First, school drop outs will end up as child labourers which is not acceptable. Second, the productivity of illeterate children as they grow up will remain low. Human asset augumentation is critical for a country with a billion plus population. This gets adversely affected. Third, this will also lead to increased law and order problems as crime rate is linked to education. The need of the hour is to increase spending on education at least by 100% and change the curriculum to include more vocational training. This has to be backed by a support system that is in tune with the education to provide jobs at the rural areas which in turn will prevent migration of rural youth to cities - to be continued