Thursday, November 20, 2008

Recession in India: Carried or Created?



For the global media recession appears to be the central theme. Most writings dwell on flat market statistics, often failing to highlight alternate opinions -- in particular on the fundamentals questions that naturally arise for economies like that in India.

In India, recession is yet another opportunity for journos and localized 'experts' with myopic vision to talk about -- even if their opinion is nothing but a unworthy emulation of popular opinion. Thank you Sir, I am enriched! Your objective is fulfilled.

For me, information sharing is about a quest to gather the holistic framework, to capture sensible alternate views that allude our understanding. My quest for a knowledge on the fundamentals forced me to meet Mr Vivek Kumar Sharma, Group Head - Strategic Business of the Ashok Minda Group, at Noida. No wonder for a scholar like me Mr Vivek remains a treat -- given his rare acumen to sniff what others ignore. His is an opinion that remains unhindered by the sundry voices that clutter our mental landscape. Here's the perspective that emerged from my discussion with him -- between sips of strong coffee.


RECESSION IS GOOD FOR INDIA:
Recession is a boon for India, a corrective pause that seeks to lead Indian corporate towards becoming more matured and more experienced. The recession we witness in India today is more than just mundane market economics or capital flows. Perhaps it calls for a more holistic analysis of the fundamentals. Are our economists listening? Perhaps there aren't any.

Fundamentally, recession is absolutely normal for India. For a market that reeled under absymal and unstructured growth it offers us the rare opportunity to pause for a while and assess the situation -- forcing us to recede back and revist the fundamentals. Expecting a continous and unhindered growth is perhaps naive by all standards. Any growth should ideally be enriched with pauses and that's what the recession is helping us to do. Afterall who can account for the way every Tom, Dick and Harry was minting money round the corner, doing nothing substantial. Or the unjustifiable fat pay package of a funny group of corporate professionals with limited mindsets who fancied more about their high-flying lifestyle than the professional competencies they possessed. Somewhere someone has to account for this anomaly. Perhaps recession is the savior.

Its time we ward-off the Indian tendency of getting excited about everything and anything. So far Indian corporates were behaving like the dog that walked beneath the horse-driven cart, content that it was pulling a heavy carraige, much to the surprise of the onlooker who witnessed the horse slogging it out. With the carriage down, the dog lies battered -- its ambition still aspiring. Today much to the delight of all the arm-chaired pseudo-intellectuals in Indian corporates are nowhere to be seen predicting the vision of a great future ahead. Poor souls they never got their fundamentals correct.

Even before news of a global recession seeped in Indian shores companies have begun firing people and predicting a grim future. And as employees recede into a quagmire of depression, entrepreneurs and their able management stars are digging pits to hide -- from something not so visible in the horizon. What an irony!

Only a few months back Indian companies appeared to be in the pink of their health. Today they lie limping at the other extreme. Thrilling extremeties indeed. For many India was just about to replace the United States' economy but loo the train seems to be heading towards Somalia. What a pity! A few months back airline companies offered free tickets and treated ordinary passengers like the Maharaja. Today they report losses, inspite a reduction in tax and fuel prices and treat the Indian pasenger as an unwanted street dog waiting to hop in for a cheap ride.


THE INCOMPETENT DRIVERS
Indian buisiness is surely sentiment-driven. More so are its drivers -- the shaky entrepreneur and his equally shaky teams. Imagine a corporate culture smeared with jargons, of powerpoint presentations and stolen alien concepts that do not fit the industry.


These corporate honchos have failed us. We all believed in their illogical philosophies. Little meat but too much sound. the ones who have failed us are a selective bunch of ill-equipped corporate gurus who hyped the sentiments because they benefitted. What else accounts for the countless mindless powerpoint presentations and the discomforting salary packages?


Its time we questioned the obnoxious pay package of corporate team members in India. Instead of focussing on building a matured system and human capital corporate houses have been running a rat race to hire professionals with a fat pay package. Yet their competencies have never been questioned. These professionals usually remain content being stuck in day-to-day issues rather than growth-related value-laden work.


A better way out of this mess is to contain this trend and lay more emphasis on human capital -- on working out a balanced remuneration based on identified competencies. The money saved can go for building cash reserves for sustaining critical human resources for a longer period of time during recessions.


The anomaly in the remuneration in India is noticeable. In Europe, for example, the difference between the salary of the lowest employee and the highest paid employee is about 10 to 15 times, while in India the difference is about 400 to 500 times. Let's seriously think on this if at all we want to sustain the indian economy.


Its time entrepreneurs critically question these people at the helm of affairs. Afterall they have taken everyone for a ride for too long. What is required is an extra flair of competence to outwit vile professionals at the senior management.They depict what Vivek Kr. Sharma says, "a seemingly strong mind embedded serious weakness."


SOME NEW PERSPECTIVES
Indian corporates do not analyze success from how things ought to be rather than whether corporate goals aligned with the personal objectives of a select few. Who cannot recall the scenario a few months back when investors from across the world were fed to the ill-conceived and smartly presented business scenarios. The common scene is most 5-star spots were that of the eager investor and the smartly dressed Indian who positioned himself as the next Bill Gates in the horizon. The gullible investor perhaps had little option but to shell out millions of bucks for projects that promised them tremendous returns.


The recession could not have come at a better time. Its definately the time and an opportunity for entrepreneurs to understand that they need to check the people they trusted and benefitted the most. They need to understand that all management members are not Ratan Tatas, Azim Premjis or Narayan Murthy.


Recession or not organizations in India are poised to loose their strengths and empty their coffers even while trying to gain ground. For instance, in the absence of a matured competency matrix in most Indian companies, corporates are likely to retrench key people for the time being. This will appear to be beneficial in the cash-strapped businesses. However, as the market will pick up there will be a crazy run for rebuilding on the organization's strength. The result: employees who were retrenched are likely to return back at twice or thrice the salary at which they were thrown out.


DIVINE INTERVENTION - FOR THE GENERAL PUBLIC
For the general members of the public who are severely limited from comprehending the finer nuances or the economy and the myriad forces at play Mr Vivek Sharma offers a rather unusual argument:


As per our beliefs, "India have about 84 billions Gods and Goddesses. In a population of 1.2 billion odd Indians each Indian can stake claim to about 70 dedicated Gods and Goddesses. Market or no market there is no reason for us to worry. We will always find these Gods and Goddesses helping us out."


Perhaps our high-flying corporate honchos need such divine intervention...

Saturday, March 29, 2008

Forget E-learning, the System is Rotting at the Base!



E-learning sounds attractive, suggesting a gigantic leap onto an era of rapid and serious learning change. The psychological comfort it offers to educationists and upmarket teachers in India enables them to use these complexities of technology to raise the level of perception towards learning and education. Today its clear that there’s no rocket science in learning – the way it is made to appear.

Look at the very core of the educational system in India -- it’s a pure mess. The basics are so intelligently sidelined through a fascinating technological garb that it confuses many a poor souls. For the Indian citizenry its a confusing realm as they try to make sense of traditional education and technology-aided. No other example can highlight this mess than the recent confusion surrounding Nursery admissions in the various schools of Delhi – India's national capital.

It was a quite a drama in Delhi. Right under the nose of the central government and with the seemingly stringent norms spelt out by the Ganguly Commission, the schools blatantly ignored rules, bent admission procedures, fiddled with processes and led to a massive confusion of sorts. Yet very few voices could be heard against this. Perhaps the Indian citizenry remained immatured to be able to see through the flimsy system.

Schools in Delhi had their own unique criteria for admission. Under the garb of the Ganguly Commission the admission formula was a mess – every school had its own unique system. Parents meanwhile remained thoroughly confused. There were ones who applied for their ward’s admission to as high as 35 schools, since they were not sure where they would get lucky. At the end of the ordeal almost all ended up in despair. They did not know what criteria were used to select students. When they demanded information they were shooed away like cattle. Information collected from several parents reveal a vicious nexus. Some suggested that it was the social status and wealth that defined the admission norm – for schools remained in the run to grab students whose parents were powerful enough to offer them indirect benefits – in cash or in kind.

Amindst this chaos there were several hundreds of low-grade schools that attempted to position themselves as an alternative – showcasing such things as the airconditioned classroom, presence of a swimming pool and other so-called “world class standards”. Most of these schools also used the word ‘International’ as a prefix or suffix to suggest their new found avatar. A closer look suggests that they were nowhere near being international – even on the cleanliness front.

The very premise in which everyone questions these schools is the fact that the land in which they were situated was handed over to them by the Government – since education is considered to be serving a noble cause. There were countless news items on the admission process in Delhi that questioned the credibility of admission and the response of the government.


The dramatics that unfolded and was spread over several days threw more questions than answers. It suggested how Indian education system remained eons behind global educational standards. It also forced many to question the veracity of the claims that most schools make about education – most of which was downright farcical. For scholars the situation offered a perfect ground for conducting research on education in third-world countries. Its perhaps interesting to see that why India produces very little leaders and researchers and more of salaried slaves who find solace in serving in a private or a government sector company that can guarantee them a decent lifestyle – nothing more nothing less.