An Organisation Structure for a new-age Political Party!

I have been a keen observer of the Indian Political System. To put popular opinion in perspective, the system sucks! However, if we examine the system in context of our history and the assumptions made by the designers of the system, a whole new truth emerges. Under the stinky surface one finds how miscreants have taken advantage of good intentions and naïve assumptions of our elders. No doubt the system needs a complete overhaul!
In this context I believe we need not re-invent the wheel. We can learn from the organisation structure / functioning of corporates. While I agree that government/political party should not / need not function like a corporate, I believe that our new age political party can borrow good workable ideas from corporates and deploy them for its gains. Some of the ideas from corporate approach could be:

• Managing Efforts: Political Parties tend to take volunteer efforts for granted. How many times have we seen grass-root level worker sacrificed for son-of-incumbent in partisan politics. I often wondered why people join political parties at grass-root level when a certain Mr. Gandhi or Ms. Gandhi is heir-apparent. This concept is keeping good people away from politics. To have a workable, unbiased, “secular”, political party we need to reward all efforts “secularly”. Current system does not measure the efforts and time spent by volunteers. A strong system needs to be implemented to document through a process effort expended by each person working for our party.
• MIS (frequent – complete reporting): A CFO gets details of every effort spent across the company. Corporate managers often seek inputs from their teams about activities and projects/assignments they are working on. These inputs form critical part of plan-do-check-improve routine that corporate follows. We need to imbibe this improvement process for our political party.
• Managing Finances: One word that is common to all corporates (maybe to a varying degree) is Financial Prudence. Current political system works on un-identified, un-documented sources of funds hence this implementing this for current political parties is not feasible. They are caught in an “un-accounted funds yielding unaccounted benefits” spiral. Our political party needs to establish credibly a system to manage and audit its account in a transparent manner. I would go a step further to disclose the accounts publicly and be open to scrutiny. (One can look at open-source model for tax and financial reporting).
• Marketing and Sales (to prospective voters): My boss says at the end its all sales! And he is right; this new-age political party’s first success will finally depend on how effectively it can sell to Indian voters. Corporates have a sales plan in place wherein the sales team regularly meets, interacts and sells to the clients. A worth emulating thought I must say. Drawing parallels, can we not expect our party to have a contact plan for each of the customer?
• Recruitment: Corporates have a well defined process for recruitment. We tend to believe that Political Parties should be volunteer driven. But when we need skills we need skills and skills we will have to recruit. Recruiting for political parties can have a two pronged approach of volunteering and recruitments. This is again similar to fresh-hires and lateral placements concept in corporates. For each person it is important to know what is expected of him/her when he is recruited. Obviously when the recruit brings some skills (like event management) to the table the expectation can align to his skill for maximum advantage.
• Career Plan – Leadership program: Also one other thing we can learn from corporates is career planning and leadership development. When you have people, they come with aspiration. Aspirations can be positively channelled if performance is measured. Hence, it is essential to put in place a performance measurement and reward system that is reasonably objective and acceptable to everyone in the team. Existence of such a system drastically enhances talent retention and helps manage expectations of the new members. It makes comparing between two good performing individuals easy and avoids conflict.

These things are more must-haves rather than esoteric requirements. Don't you think a political party along these lines will actually renew India! I know of a party which is finding its feet and curiously examining these very issues. Click here to know more!

Looking for Performance?

Getting people to perform is the single biggest challenge for organizations. Of course, people in organizations work. But do they perform to their potential? Generally I don’t think so! There is huge untapped potential within people and it simply never comes out. However great leaders are somehow able to ignite a passion for performance that makes people put in that extra little bit for them. What magic potion do these leaders have that makes performers out of ordinary people? Is it a rocket science? Can I have it?

Of course you can!
Like everyone else I am too searching for that potion, but in the course of my search I have found some tidbits that I believe will be helpful. I have found that

• Everyone has a performer within them. Often the performer is sleeping. Awaken that performer in your team.
• Performers are wary of politics! But given that organizational politics is a reality, Performers see a performer who is good in organizational politics as more worthy adversary than a non-performer! If you can discourage organizational politics, at least shield your team from the pan-organisational politicking.
• Performers are not wary of other performers. In fact they love performers. Promote the performers in your team to get together, act as a team, take on bigger challenges!
• Performers are not hugely motivated by money alone. Along with money, performers need recognition. As a leader, it is your responsibility to advertise the performers in your team! Performers will love you for it! Yet remember performance love genuine appreciation and can see through fakes!
• Performers want preferential treatment over non-performers. Any indication of socialism in reward allocation is a big put-off for performers. After all there has to be enough motivation to perform. A healthy bias towards performance is a good performance initiator! Remember show the bias to performance and not to performers!

What has been your experience? Have you experience this as a leader, or as part of a team? Let me know.

Web 2.0 and New Yahoo!

Internet has revolutionised everything! How many times have you heard that phrase? By now surely a million times and you will hear more of it as we enter Web 2.0 era. Because it is true!

What is Web 2.0?

Simply put Web 2.0 is the next generation Web applications. You can look at the links (del.icio.us and Yahoo! mail) and flip through the pages in detail to know more about Web 2.0. So now with the new version Yahoo! gives me an option to right click in browser window and search through Yahoo! Search engine. Google does one bit better through Google Desktop by searching within my computer, out in the web and maintaining a record through personal search. Yet one person is still not seen. Believe me, he has aces up his sleeve. And that would be Mr. Bill Gates!

Microsoft Advantage

One wonders what he is upto these days? Where are his best programmers? What products is he thinking of through his .Net platform? How do they compare with Web 2.0? Believe me if that person is worth the operating system I am using, he is making MS Office on Web 2.0! Also I believe he will surely come up with the new innovations for browser, search engine, OS that will tightly integrate web and computer!

Web 2.0 changes the way we communicate

With the advent of the internet the modes of communication has changed considerably. We now no longer believe in snail mail, we look at computer screens more than we look at A4 sized papers, we spend as much time looking at websites as we do looking at newspapers or TV, our first stop for information is almost always the web. Yet all this has not been incorporated in our habits. One needs to question why I have to read reams and reams of paper electronically published. The website interfaces need overhauling to suit the new lifestyle. Web 2.0 will make that easier. Yahoo Mail looks like Outlook, soon word processors and other programs will be available in similar formats and then we will be totally integrated.

To conclude

I remember looking at a stand-alone computer with wonder and amazement, with even more wonder and amazement I looked at LAN in my college lab, still amazing wonder was when I signed up for email and chat program and made friends across the globe. Today I am looking at Web 2.0 with even more wonder and amazement! Now I am going to buy Microsoft shares! I welcome myself to the next tech boom!

Between Dam and Development

The Narmada Bacho Andolan (Save Narmada) has been on for a very long time. The foundation stone of the dam was laid by Nehru! The protests are from two sides, one side calls themselves pro-development and the other pro-rehabilitation.

Debate with one side!

Now the ridiculous part is that the reality is with both. Any development means that few citizens will be affected. However, it is definately the responsibility of the government to make sure each of these citizens are adequately compensated. Any person who demands adequate compensation cannot be wrong. What I feel is the point of debate is if the compensation is adequate or not.

How are the people compensated?

The Land Acquisition Act mentions about the compensation having two elements. First is the market price of the land and second is an allowance for compulsary nature of acquisition. There are also provision to allocate land in proportional terms. Typically what happens is governments try to suppress the "market price of acquired land" and inflate the "market price of allocated land". Thus for a 100 unit land before acquisition roughly equates to 20~40 units of new allocated land. Further this new land is taken from some other people and a lower amount is allocated to them. Please note that this is compulsory in nature and the farmer or land owner does not have any option to reject the offer.

Imagine tomorrow someone compulsarily takes up your 4 Bedroom penthouse and allocates you a 1 bedroom apartment across the street with a note that the price of new house is same as your penthouse because the development (like new road, electricity and water etc) that they hope to undertake in your land!

Further try and get the compensation through the courts and you will end up spending more than 30 years trying to get a reasonable deal for your land. Even at the end of 30 years all they get is a "simple interest" on their asset prices. They are not even given a standard recurring deposit interest rate! Generations after generations are forced into poverty despite their lands being very valuable! Is it fair is my question?

What is adequate compensation?

Beyond the amounts, it is the timing of the compensation that is critical. In this sense the NBA is critical. First compensation then development must be the mantra. It is only because of the stopping of the dam that the rehabilitation work is in focus. Had the dam been completed the matter would have gone out of public interest.

Medha Patkar is wrong in fasting!

Medha Patkar leads the protest through non-violent means by Fasting like Gandhi. Someone should let her know that no amount of fasting will help the NBA cause. This war has to be waged on basis of information. In information world information is the weapon.

Now I am wondering what would be possible tactics Medha Patkar can use in this war. Any suggestions?

Dis-incentivising Prostitution

From a brief scan across all the proposals and demands from the industry one gets a feeling that government is out to dis-incentivise their particular industry and government is doing a damn good job of this. But look at prostitution, the world's oldest business. Many a government has tried to ban prostitution (dis-incentivising of course) to no avail. The worst affected by the ban were the prostitutes. They were exploited by various people starting from pimps to law enforcement agencies. And still there is no end to prostitution. Hence many governments have taken steps to legalise the system. Can then the government learn from its exceptional good job in other industries and use it where it matters most?

The Horns of the Devil!

If we observe this business we understand that there are three core players, prostitutes, pimps and customers. Prostitutes are the exploited ones, they are there (in most cases) because they do not have alternatives, they are helpless. The pimps are middlemen. But most critical element are the customers! At least in India they always try and catch and prosecute the "prostitutes" but customers are often let free. It the customers you have to catch if you want to eliminate prostitution!!

How do you do it?

The first way government can di-incentivise this trade is by taxing it! Simply take the details of the customers and put an additional 10% tax liability on these people. Or if I were Finance Minister I would call it a cess and channel the money into health care for these sections.

Second deals with the way British enforced law in India during their occupation. They used two major weapons. No it wasn't the baton or gun, it was information and social pressure. Lets say, if government were to take a photo and details of every person who is caught with a prostitute and publish the same on some website. Or track connected near ones like office, friends, home and supply this information across these places. Will social stigma not cause the customers' to vanish?

The Dance Bar Phenomeon

Mumbai now has another issues and its Dance Bars which government was trying to ban. The Mumbai High Court recent allowed these dance bars to operate. Using our earlier logic we can work on an effective solution to the Dance Bar problem.

First way is to simply get details of people who come to dance bars, the amounts they spend and share this information with income tax. Or simply make entry in the bar subject to swiping / scanning of PAN card! (India's equi-valent of social security number for tax purposes)

Second again will be to share the details with the friends and near ones along with details being publicly posted on some common website. Regulars should be tracked and traced across dance bars.

In sum...

Basic economic sense can be used to contain a lot of industries, often these techniques are used on legitimate industries in era of control. Same techniques may be deployed where it actually matters. What Say??

Inorganic Growth and Organisations' Risk taking ability

As students of business we understand that organisations can be classified into three types based on their growth strategy. Primarily organisations follow, Organic Growth, Inorganic growth and some use both. In many industries there are examples of players resorting to organic growth whereas some resorting to inorganic growth. I always wondered why is it that some companies cannot grow rapidly in organic way?

Growth Risk and Organisational culture

Risks associated with inorganic growth are well-understood and documented. In fact, it is easier to take "inorganic growth" risk rather than "organic growth" risk. Also the risk is taken by top management. Logically Inorganic growth requires risk taking ability at the top of the corporate hierarchy whereas Organic growth requires risk taking ability that is distributed across the hierarchy.

This leads us to a reasonable hypotheses about the organisation culture. Organisations that emphasise more on inorganic growth may be risk averse, explaining the association of risk with the top management. Conversely an organisation with high organic growth is almost always flamboyant, empowered down to the line functions.

Inherent disadvantages of Inorganically growing organisation

When you extend the logic a little further you realize the implications of both these strategies.

For One, a flamboyant organsiation has its ranks full with "risk-taking" experience across the hierarchy. Hence succession planning is not much difficult. Such orgaisations can find within its ranks potential leaders, CEOs etc. On the other hand in a risk averse organisation the ranks have no experience in taking risks. So effectively any modifications in the current top management shakes the very foundations of such a company.

Secondly, it is difficult for such an organisations to take-up new take-over/ merger options because it cannot find within its ranks leaders who can take up the integration work post the merger. A flamboyant organisation can effectively take up inorganic growth and thus be even more successful.

Finally, even in the middle of merger, a flamboyant organisation is more likely to energize the other organsiation, with its people taking up most of the challanging positions in the merged entity. The risk-averse organisation has to either find leaders capable of taking up this challange or resign to domination from the other organisation. (This is not a generally seen conditions because "risk averse" organisations do not take-over flamboyant organisations because of cultural issues)

Is your organisation risk averse?

How can one deduce if his/her organisation is "risk averse" or "flamboyant". Well, even though there is no track-record of inorganic or organic growth it is possible to decide where your organisation belongs. Of all people employees can definately decipher the actual behaviour from stated slogans. I believe these are some hypothese that will expose the true behaviour of your organisation. There are more and I havent thought of all of them so let me know if you think of any other.

Lets look at following hypotheses:

• Hypothesis 1: "If it aint broke dont fix it!" A performing function in a "risk averse" organisation is almost never challanged. Top management just lets them be. On the contrary, in a flamboyant organisation, a new wave of strategic initiatives is undertaken to improve the best performing function. Check in the best performing department, is it subject to improvement initiative? Are the processes in place?
• Hypothesis 2: New initiatives are always led by top management or identified leaders. A "risk averse" organisation never risks a new initiatives with unknown leaders. And this means new initiatives are all big initiatives. On the contrary, flamboyant organisations have smaller new initiatives manned across the ranks. Such organisations do not wait for "proven" "sizable" opportunity rather they explore every possible opportunity with the resources they have. List out the major opportunities your organisation has gone after? Do you see familliar faces manning them? Do you see enough grass-root level opportunity exploitation?
• Hypothesis 3: Flamboyant Organisations have a Fast-track program for employees. Typically, a team that takes higher risks needs higher rewards and this shows in the flamboyant organisation. A typical fallout of this is high person in-dependance in such organisation. The top performers are often moved across departments across functions to man the new initiatives. A fast track program may be a structured program or un-structured program but the key point is every employee knows how he can be selected for this program.
• Hypothesis 4: Meritocracy must for Risk taking organisation! Most of the Risk taking organisations have a mechanism to reward the best employees. GE consistently separates the extra-ordinary from the ordinary!
• Hypothesis 5: In flamboyant organisations, new Ideas get heard, financed and manned at first level where decision can be taken on them. If you have pitched for a new idea and your boss has referred it to his senior and you have not heard anything about it from then on, most likely you are in a "risk averse" organisation. In flamboyant organisations if someone is responsible he/she takes the decision and gets it implemented.

My new Samsung D600!

Finally I migrated from my year-and-half old Sony Ericsson K700 to Samsung D600!! Its been a well thought out decision after a lot of deliberations. I also found a website wherein you get amazing reviews of mobile phones(www.mobile-review.com)!

Yet, even after careful selection I found some drawbacks and its just the second day of using it! I guess every good thing also has a little scope for improvement!!

Migrating to D600
I found it extremely difficult to migrate my contacts from Sony Ericsson K700 to D600. I did not have the data cable for K700 did not help the matter. However, I used the Send all option from contact menu of K700 and selected via bluetooth. The D600 received the whole transmission yet only showed one contact in the address book. I eventually had to transfer all my contacts one-by-one! (I know using a computer things would have been simpler but the fact is sending entire address book did not work in D600)

Short service "SMS"
In D600, I cannot choose the default storage for SMS messages. It directly comes into SIM. There is also no option to backup the SMS into the memory card. Also try saving the number from whom you receive an SMS into one of the existing contacts. You cant do it!!! ( I usually get SMS from people saying "This is my new number" rather than getting a vcard!) Life is going to be hell!!

Where are the "Text Notes"
Thirdly, there should have been option for text notes (not those included in the calender but simple stand-alone text notes).

"Menu"s in context
The menus do not change according to context. For example, if I am typing an SMS, the left soft key shows "options" where I click to reach send. However, ideally send should have appeared as the soft key option and options should have come at the right soft key. The right soft key shows "back" which deletes the message if you are not careful.

Samsung does not believe in taking the "Short Cut"
You cannot assign all menu options to the shortcuts. The options are restricted and rest of the menu are out of bounds!!

Cannot fly without a "Flight mode"
Lastly, an executive phone that does not have a "airplane mode" or "flight mode" is hard to believe. They should have included it on D600. Of course Mobile-review team has mentioned this in their review but this is something what I call a must have!

MP3 Player, No radio!!

Where is the radio? With a phone equipped with good quality sound the lack of radio is a disappointment.

In sum...
So there it is the list of some of the drawbacks of what basically is a "potentially" great phone. There are loads of features like TV out and great camera and a lot more. I am hoping they have sorted these things out in the next edition D800 slim slider phone! For more on D600 / D800 and other mobile phones visit www.mobile-review.com!

Mobile Devices - The New Business Model

Currently almost all the "valuable" functionality of the mobile phone is derived from connecting with the network. Almost all business models are based around this central theme and already there is a lot of clutter in this space. However there is a lot of space for innovative business models to exploit inter-device interactions. The next stage of development of mobile devices will be in exploitation of the inter-device interaction.

The "Close-By" opportunity
One serious impediment for exploitation of mobile services is the lack of location tracking at close range. At the most a phone can be tracked to the nearest tower. Lets imagine if it were possible to track a phone right down to within 5-10 meters. We all know Bluetooth can enable this very effectively.

The stumbling block
First constraint is that people switch off their bluetooth communications. Can one overcome this constraint? Of course, if offers are flashed only on bluetooth then people will switch on their bluetooth.
Second is privacy. People will not welcome spam on their mobile devices. Frankly the messages one gets while roaming are extremely irritating.
Third is security. Why will I enable my bluetooth connections for others to send messages to me? Will it mean I will be exposed to Viruses or any other threats?

The Bright Idea
To avoid this advertisers need to place constraints on themselves. These could be enforced technologically too. Like for example imagine a program, a bluetooth message trasmitter server and a receiver client, that makes sure the messages are customised and welcome. How?
Imagine the "client program" has options that let me choose the products for which I want offers. The "server program" knows and only sends me those offers that I have asked for!! This "client program" can be freely distributable with mobile phones (just like our dear Adobe Acrobat). The "server program" will be bought by local advertisers (shops, malls, bus service providers etc) and telecom companies will run them. We all know that the "client Program" can be configured to be independant accepting only from "known" "server programs" thus eliminating security threats.

In sum...
I think this means my mobile experience will be much more valuable, there will be additional revenue for Telecom service providers, and local advertisers will have lower advertising cost enabling highly targetted advertising. Wont it make a better world? What Say?

Engineering Diamonds

While I am on the subject of Jewellery, let me also say a few words about diamonds. The biggest question that faces a layman like me is about the authenticity of the diamond, its material (is it really a diamond or is it polished glass!!), the cuts (apparantly more of them are better), weight in carats, flaws ( diamonds always have some of them). Not many people can look a diamond in the eye or pass light through it and tell if its a great piece or not. We all go by experts view. Is there any other way?

Optics and Diamonds

At the core of diamonds value is light or better optics. A diamond appears bright and sparkles. Also when light is passed through a diamond it forms patterns. When the diamond is manufactured they should establish what pattern it forms and share it with the consumer.

So long as the light is consistent (same frequency) and the way it is passed is consistent ( angle of incidence etc) it should produce the same pattern throughout the life of the diamond. This can be used as a metric to measure the genuine-ness of the diamond. For example, it should be possible to design or designate one particular frequency of light that shall be used for the purpose of reading patterns. Using this it is possible to create a testing equipment which can observably indicate if the diamond is of high quality or if its quality has deteriorated.

Artistic Inclinations and Observable Quality

Turning the idea around, theoritically, it is possible to design a diamond's cuts given a light pattern. Lets say a hexagon of certain dimension with bright vertices is a pattern. Now can we work back from this pattern and arrive at what design will form such a pattern? I think we can. Just that not much "engineering" thought has gone into designing of diamond patterns.

The general artisty in diamonds is currently confined to ability to design the cuts that creates the best value. Another form of artisty can be applied to diamonds and that will be pattern creation. The more complicated the pattern (and more recognisable) the more value can be derived from the diamond.

Imagine...

People can be offered diamonds that emit a pattern (under certain conditions) that says "I love you" or "Ferrari" or "Intel Inside" and even customized names like "Rahul" and the value of these diamond can appreciate far more. I am sure once this happens it wont be long when real pictures can be encoded into these diamonds so that the pattern that they form is actually a photo. And that will be the first step in making diamonds more valuable. All it needs is a few engineers putting their heads into the design departments in this industry. Dont you think so?

Engineering Jewellery

Long ago I had a look at various kinds of Jewellery designs. The designs I saw were uninspiring and dated. Considering that India is one of the biggest consumer of Gold and that too in jewellery form with a history dating thousands of years in jewellery design, this was totally unexpected. Through each of the designs I found there are only x number of patterns out there in the market. The forms of jewellery is also the same. I kept looking for innovation as the industry became more and more organised. But alas! No innovation in a product of such a high value!!! I believe the main problem is that currently the industry is dominated by artists rather than engineers.

Base of Jewellery Design

At the base of jewellery design are three basic items:

1. Designing patterns (these form the elements): This aspect is more of the artist type of work where differnet designs are created through use of symmetry, forms and look. These we will call "elements".
2. Designing links (that hold various elements together): If you observe different jewellery pieces (except the ring) you will find that various elements are meant to position themselves on the wearer's body. The links help positioning these elements and holding them together.
3. Designing Clamps or holders for gems: The element comprises of gems or diamonds(sometimes it doesn't). These gems (and diamonds) are required to be held by clamps. These are of different types crab-like or ring-like and many more.

Two paths for innovation from Engineers!

First would be bringing CAD (Computer Aided Design) to this field. I think using CAD far more imaginatively designed links can be used. In fact engineers can effectively use their design skills to make the links the focus of attention (thus morphing them into elements) or submerge them totally so that they stay invisible to the observer.

Second would have (I believe) far reaching consequences. For example, imagine a necklace that can morph from a simple necklace into an elaborate bracelet or a watch! Or imagine a necklace that you can customize with a set of jewels! This will lead to buy once and use as many!! Girls can wear one configuation each day and never will people know its just the same necklace reconfigured!

The Future of Jewellery!

Of course human infatuation with jewellery will continue! (Ok, its female infatuation for jewellery and male infatuation for females!) However, in no way has the industry even scratched the surface of innovation. The answer to me seems to lie in increasing involvement of engineers in this field.

A new way to advertise online!

Long time ago email was a big thing and to get it free I did not mind my information being shared. I also agreed to look at some ads in the bargain! Not so today! Today I have a keen sense of screen map of my favourite email programs Gmail and Yahoo! Today my eyes conveniently ignore what is flashed across the screen that is not relevant to my email!! So can you make ads better? I thought of one way!

Do you know Yahoo! gives you an option of Avtars where you design a web personality for yourself. Now can you put that in the ad? Along with flowers and Avtars of my buddies (from my contact database of course) and can you not create an on-the-fly ad that makes sense for me? Like can you not describe a flash presentation of my Avatar giving a watch (Omega, Esprit, Casio etc) to my friend's Avatar with an option of buy a gift click here!!

I think thats a good way of inducing me to click on the watch site and I might actually buy something relevant. The key will be to identify the relationship between me and my friend correctly!!! Can Yahoo! or Google do that? Sure they can scan the emails through a web-crawler-like program and figure out what ads suit best. In fact Google can call it Relationship Rank algorithm!! (Hey if you are from Google and reading this post and planning to implement this please name it Rahul Rank!!) The Ranking can be based on frequency of emails, content in emails, key word search in emails and many more parameters.

Now let me hope that they make better ads to help me enhance my relationships!!! Fine trade-off for viewing ads!!!

Happy New Year!!!

2005, by all means, was a very tough year. But nestled in the tough twigs of challanges, there were tender eggs of promises. I managed some unbelievable things in 2005:

• Lost everything in the Mumbai Floods but put it back together very soon. Rented a new place near Office cutting commuting time by solid 3 hours!!!
• Got married to my sweetheart!! Had a dream honeymoon in the hills of Sikkim!
• Won more deals than I could recollect till March! Lost more deals that I recollect but managed enough to achieve my targets till December!
• Went on a Cruise and tried to imagine myself with Captain Cook!

What an eventful year!!!! And now to top it all 2006 is here!! Here is wishing everyone a warm prosperous and cracking 2006!!!

Police Officer at every corner!!

Recently I read an passage where it was depicted that a lady calls for help and a cop arrives on the scene. I was amazed. If I call out "HELP" not one police will ever come. In fact, like in the Bollywood movies, police will only come in last.

How important is it for a developing nation to have an evolved police force. For all the power that exists in a nation is personified in that police officer. A nearly omni-present Police is greatest of crime fighters. But more importantly, it is also essential for development. (Assuming that Police are doing their duty)

I can imagine Police preventing Garages from repairing automobiles on the road, Hawkers creating new road-side stalls, Slums from coming up, People spitting on the roads, or to sum prevent abuse of public property. They would also protect small children trying to cross the roads, accompany the elderly through traffice crossings, prevent chain snatchers and in general make the environment exceptionally safe.

Eutopia is it? I am told Hong Kong already has such a thing, and Singapore too. India is far behind!! Can we say that the real roots of reforms is in police reforms. Law and Order is first step towards REAL development. What say?

Why Bihar should ensure there are no slums in Mumbai?

Slums are seen as a great blemish to any urban settlement. Various efforts made to eliminate these are rendered futile.

A slum dweller has substantially reduced cost of living as compared to a legal resident. The total cost of working for a legal resident includes rent for property, facilities like water, electricity telephone, cost of travel etc. There are also long-term expenses for maintenance of the facilities they use. For a slum dweller these cost do not include the major heads of rent and in some cases cost of travel is also reduced. The maintenance is almost as negligible as the rent. Due to these cost advantages the slum dwellers are able to work at much reduced wages as compared to the legal residents. This has cascading implications.

Firstly, this prevents any increase in the cost of labour in the city. Alternatively the labour costs may also reduce. This allows the city to retain its cost advantage over other competing areas. Corporates and revenue contributors do not feel the need to shift base to the newer areas, the newer areas do not get adequate returns on the investments. But as this is only a pseudo‑advantage it actually strains the infrastructure of the city. Investments in the infrastructure generate more jobs and more jobs attract more people. This goes into a degenerating spiral till the area cannot take any more modifications to adapt to the increasing demand.

While superficially it seems that the cost of living of only the lower end of the wage spectrum is affected, a peek at the economic mechanism reveals how this affects the entire range of incomer earners. It reduces the cost of living by making maids, drivers and other services available cheaper than it would have been possible otherwise. In its absence the pinch of increasing costs would have felt earlier creating a trigger for economically rational action.

The political impact of this is even greater. The local legal residents are not able to compete against this new workforce that enters this local markets. This forces the local labour force to move out of their “homeland” leading to “son of soil” movements. The fact that the political parties promoting the “son-of-soil” movements themselves are promoting slum rehabilitation schemes shows the hollowness of the intentions on both grounds.

The major political impact is of the vote-bank politics. The work force that migrates into the city needs a support structure and political leaders exploit this need to gain a hold in the area. The fate of the politician depends upon the number and not their legality (which can often be purchased by politicians themselves). The politicians therefore are in favour of migration into the area rather than out of it. This gives a situation the last push down the spiral out of which recovery is rather impossible.

Rational action assumed as a solution for slums is enforcement of laws against encroachment of private and public places. When this rational action assumed is broken the system fails miserably. The system needs to be redesigned so as to be fail-proof in such circumstances.

Notes and Points
Slums have an effect to lower or maintain the cost of labour in the city. This effect is short term and has a detrimental effect on the investments made in the city in the long term. Over the long term these investments are less profitable than investments in economically viable legal locations.

Artificially decreased cost of living denies the lesser developed areas to get a share in the limited investment capital available. This means Bihar and other lesser developed states should be more keen to eliminate the slums in metros and urban areas than the metros themselves.

Slum problem can be tackled politically or economically or both. Political solution would be to restrict the right to vote to locations where they have a valid house. Economically, taxation could be increased for investments in congested cities and metros. This will make investments in congested cities unviable thus allowing development in towns and cities other than those already congested. However we also need to ensure that there also a pull from other cities for such investments to come through.

There should be a great interest from the central government to make sure that congested cities do not get the investments for the greater good of the economy as a whole. Developmental bias is certain to clarify the same.

Essentially what it means is that if you ensure Law and Order (and not let slums come up in the first place) to allow the economics to shape the development you will have ideal country!! Will India create an atmosphere where Economics is able to efficiently take its course? That is a big question!!!

Low Cost Airlines

There is suddenly a spate of launches of Low-Cost Airlines in India. Each Airline claims a fare lower than the lowest. If this really continues soon Air travel will actually be cheaper than walking!! (kidding of course).

I have been thinking about how these airlines continue to survive. Recently, I read about the discussion on how Low Cost Airlines can be viable and it triggered some thoughts.

Actually to look at the viability I believe, we can look at Transport operators (cargo-trucks) model. They have the kind of Hub-&-spoke model that Dr. Krishnan is talking about. In fact the viability of the model actually lies in the hub and spoke mechanism.

For people-carriers though, there are slight problems as they have to break their journey and that consumes time. The viability of these low cost airlines must come from other revenue streams. Air-Cargo offers a good alternative.

I am not actually aware of the percentage of the revenues from Air-Cargo but I know that the local inter-city buses make a significant revenue from transport of cargo. A bus (in India) usually carries around 1-3 tons of cargo in addition to the people and their luggage. This cargo is typically mail and small goods. Similarly, I would expect Air Cargo to actually contribute significantly to the revenues. Typical Air Cargo is Mail (again!) and perishable goods. An airline based on this duel revenue model will most likely survive.

What say?

Cruising Along

Last weekend, I went for a cruise from Mumbai to Goa on Star Cruise Libra!! I will soon post some pictures of the trip but it was a life-altering experience.

Firstly, I now rate Columbus, Vasco Da Gama, Captain Cook and gang much higher. The feeling of being on a ship surrounded by water on all sides is something amazing. How on earth can some guy stand on a shore and dream about crossing the wide ocean! Ok I understand curiosity must have gotten better of discretion but what about the second time. What on earth were these people thinking when they started their second voyage! And the most important, how did these guys convince their mothers! These guys were not simply good "sailors" they were good "sellers" also!!

Secondly, there are sights seen to be believed! I was totally enthralled seeing the ship cut the water and splash it around. Watching the moon set in the sea you realize why moon is called a heavenly body! Just before the moon sets it paints the entire sea silver! Boy a site to watch! The breeze is so strong that you realize how sailboats could make their way across the world!

Thirdly, what a wonder is this Star Cruise Libra!! I am told its a 15 + year old boat! Its like a great factory, everything is impeccably right. Things (tables, racks etc) are fixed to the ground in a neat manner. The decks are cleaned every night! The wood is polished and everything is very perfect. The rescue boats are cleaned regularly and look in perfect shape! The staff is impeccably dressed. Perfection is everywhere. There is a gym, swimming pool, sauna, jogging track, basket ball court (half court), table tennis and what not! Sailors will have a complete life just like a factory worker.

Fourth, there is party atmosphere everywhere. And I believe so it must be even on cargo liners. I must say sailor life is something very organised and well planned and loads of fun! Two days definitely left me longing for more!! Maybe if I have a lot of it I will be bored, will I?

Of course there were sore points!!! The service at the restaurants leave a lot to be desired. The staff is very courteous but simple courtesy is not enough. We need GOOD food!!

I believe these people have created a problem for themselves. They have created a faulty system and they follow the system effectively. They are not empowered to circumvent the system for better results. I believe they need process consultant to work with them. Guys if you are reading this, please invest time and resources in TPM, 5S, 6 Sigma, Kaizen, Quality Circles etc. It will help you be perfect. If you want even I can help!

Advertising the "New Age"

Can you recall 10 ads that you saw on television yesterday? Ok can you recall 10 ads you saw today? No? It is reasonable to expect that I am part of the target market for a lot of companies for a lot of their products, yet I do not notice their communication on the television. As a marketer I guess its the worst problem. A 30 sec slot at prime time costs a bomb and no one notices!! Today advertising is facing it worst crisis.

There are far many number of channels today than I can care to recollect. And there are absolutely no programs that can make me watch through the commercials till the program begins again. Invariably I switch the channel and find something more interesting. I wanted to see the channels of similar profile co-ordinating the timing of the ad-spots so that even if I switch to other channel of the same profile I should see the same ad. Not so yet! I think channels should sit together and set-out rules (for say coordinating ad-spot timing)so that they can assist the marketer to reach their targets.

If you have noticed, barring Cricket and Tennis there arent many games I know of wherein you get regular breaks to show your ads. Cricket is a marketers dream there is a break every 6 balls!! I think marketers / channel owners must make a co-ordinated effort to popularize this sport. They will get more bang for their buck. But even here some channels get greedy and show only 4 balls encroaching the ad space into first and last ball. Obviously, if the viewer has an option he switches to other viewer-friendly channel.

Broadcasting Technology is changing with launch of Microsoft Windows Media Center Edition that lets you pause "live" broadcast and play it back. Soon some geek will invent a program that will "catch" the commercial and elimiate it while recording to the hard-disk. So viewers will actually prefer the media center rather than "live" broadcast!

Advertising the future!

I believe, advertisers should also look at their business and really alter the mechanics. If I draw parallels between watching a program and driving a car then ads currently are like "Red Signals". Rather effective model will be the "window shopping" model. So ads come and go they do not hinder my driving / walking but they are attractive enough to entice me to stop and have a look. the "Red Signal" approach has killed the ads ability to woo the prospect. What say advertisers?

Check-Out The "New" Mumbai Airport

How much earlier do you need to reach the Airport so that you can Check-in for your flight? Of course I know that there is Tele-checkin facility. But one has to finally check one-self in physically! And try doing that at Mumbai Airport during the morning time.

I telecheckedin a day before (some luxuries of loyalty program!). I reached the airport at 5:30am for 6.45am Mumbai Chennai flight. I waited for 10 minutes at the baggage screening counter, 15 minutes at the Check-in counter, proceeded for security check and spent 50 minutes waiting for security check and finally boarded the plane at 7.45am! I was early because rest of them took about 15 more minutes to get to the plane! And this is the new terminal at the Mumbai "International" Airport.

For more than 30 check-in counters they have 4 security check counters and 7 Boarding gates leading to one Bus pickup platform! (Thats right there are no aerobridges!!!) Now anyone will tell you that these proportions seem to be TOTALLY wrong! They did not read "The Goal!". What a shame that all this investments have yielded almost nothing!!!

So much for infrastructure!! And to think of it Mr. Prime Minister wants to make a Shanghai out of Mumbai!!!

Music to My Ears

I have always been a fan of Old Hindi Music. Except for Bryan Adams, Shania Twain, Sheryl Crow and some pop numbers my love of English songs is quite limited. Few days back, I discovered Frank Sinatra and Elvis (Can you believe I never heard them before except some remixes!)

I have found Sinatra and Elvis quite unbelievable. The songs are really good and best of all I can understand the lyrics when they sing!!! Now that reminds me, I have to go out to buy another Frank Sinatra CD! See you soon...

A long absence

Well,

I am back after juggling a job and a long distance courtship (which happily ended in marriage) I now have the "proverbial" breathing space. So many days have passed that I realise my ICE post is no longer relevant (God that industry moves fast!!) So I am chucking it and moving on to here.

currently I am tracking the blogs on IIPM after what I read about Gaurav's post. Will be back with some more ideas. So see you soon...