Delhi: A long way to go.

It’s really difficult to understand the relevance of the claims made by Mr. Kalmadi and Ms. Sheila Dixit about ‘successfully’ holding the Commonwealth games in Delhi next year. We do not have the stadia ready to play, we do not have the audience to watch sports apart from Cricket, we do not have the roads to carry the tourists across the city and we do not have the buses to do so. In such a case, how do we make the claims to hold Commonwealth Games in India and are bold enough to bid for Olympics.
A short stint of 4.5 months in Dubai was enough to change my perception on India Shining. A GDP growth rate of 6% and the ability to fight the inflation did not have any impact on the actual condition of India. Through this post, I do not intend to criticize and re-criticize the government for its failure in bringing up the talent to the forefront, but I’ll pick up three most grieving problems faced by Delhi to attract foreign tourists and businesses. I end this blog with three recommendations for the government and the citizens to start the change process and give a speed to it.
The first and the foremost factor is the portrayal of the image of India. I landed at New Delhi IGI Airport and the first sight was old, stressed out baboos sitting at the immigration counter, handling the foreign tourists and creating the proverbial first impression on them. The moment I came out of the airport, the scene outside was even worse. There was a long queue at the pre-paid taxi counter that was shattered itself. After standing in queue for 15 minutes, I got the receipt for the taxi but no taxi number and nobody to tell me where to get the taxi from. As if that wasn’t enough, the taxi itself was in a broken condition with foam coming out of the seats, rear view mirror missing and seat belt just tied at one end. And if you get a chance to travel by train in the morning, you’ll see people doing their chores besides the railway tracks making India the butt of the joke.
The second serious problem faced by Delhi today is the road traffic control system. Delhi-NOIDA express way was created to showcase India’s prowess in the road transportation but despite the wide, high-speed roads, the toll-gate has done the damage by making the cars wait for long times. Though I am proud of the DMRC project in the city, but the traffic hassles that it has been creating for the last 6-7 years have been a major headache. The temporary roads that have been built as bypass to the metro-line have been built in a very bad condition as if the responsibility for travelling on temporary roads lies with the drivers and not with the authorities. At traffic lights, it becomes evident that there’s no lane system existing in Delhi, whatever are the claims of the Delhi traffic control authorities.
Third major problem faced by Delhi is the safety of its citizens, especially at night. Every other day, we read a couple of news of murder in some corner of Delhi or a rape in the other. Night life is pathetic, to say the least, in Delhi and the only reason is the security issue. People don’t feel safe to come out of their houses at night, even for a walk. And foreigners are the least protected of the entire lot because of their naiveté about India.
Given these basic problems, apart from the administrative, bureaucratic and sports issues, how does Delhi claim to be in control of the situation and sure enough to be able to hold the Commonwealth games in 2010?
Coming to the solution part, there are three basic things that Delhi needs to focus on, rather than beating around the bush with same old policies leading to absolutely nowhere.
The first thing that Delhi needs is the role clarity between the Center government’s responsibilities and the State government’s. Not long ago, the state and central governments were from different parties and one could see a constant blame game going on between the two for the responsibilities of the safety of citizens, public transportation, power supply, water supply and other basic infrastructural facilities. Even now, it’s not clear whether the Indian Olympics Association (IOA) needs to tighten the state government for certain facility requirements or the Center govt. Before we move on to ensure a Developed Delhi, we need to sit for a while and draw clear lines of responsibilities.
The second important step to be taken by the Indian government is to ensure a better road network and a planned expansion of the same. Just like the Andhra Pradesh government, Delhi govt needs to take some bold steps to expand the road network within the city at a much faster pace than it has been doing. Roads in Old Delhi need to be broadened and new roads to be added, even if it means purchasing the land from the residents of the area. The Delhi-Gurgaon flyover system was planned to take on the traffic for next 20 years, but it has already been clogged up with traffic jams and long queues. Proper traffic planning needs to be put into place before mindlessly creating new roads. The BRTS system has faced so much resistance from the local public because this system created another barrier in the already bad traffic condition of the capital. A centralized support system for the public transportation should be set in place to help the non-residents of Delhi. In the nutshell, the master plan for the city or Delhi Vision 2020 should be created for Delhi and every department should be aligned to work towards the same.
My last recommendation to the Delhi government will be to shift as fast as possible from the man-oriented governance system to e-governance. I really appreciate the Bhagidari initiative of Delhi govt. under the supervision of Ms. Sheila Dixit, but this initiative needs to be more inclusive in approach. E-governance should not only be focused at the citizens or residents of Delhi, but it should also be targeted at making the stay of the tourists as comfortable as possible. E-governance should help the citizens to fill in the bills online, file complaints against public offices, get to know the bus routes, know about the decisions of the government, know about the plans for Delhi’s development, rules and regulations prevalent in Delhi and other needed support for the residents of and visitors to Delhi.
I think these three solutions will form the base for the Delhi government to start its further development towards proving itself as the capital of the next super-power of the world. Once developed in Delhi, the same model can also be implemented in other cities in India that suffer the problems similar to New Delhi’s.
But before putting it all on the government, I must say that nothing can be fruitful if the citizens of the country will not support the system. Any initiative of the government needs an encouragement and acceptance in right spirit by the residents. Only then will we be able to create a Shining Delhi and Shining India.


ARUN SHARMA




Copyright © 2009, Arun Sharma. All Rights Reserved.

For discussion on this article, visit http://am-i-possible.blogspot.com
For more posts by Arun Sharma, visit http://WhyNotHaveFun.wordpress.com

Opportunity at the Bottom of the Pyramid ???

Opportunity at the Bottom of the Pyramid – CK Prahalad proposed the idea and many of us cashed upon it. The “Business Pandits” of the world like Mr. Prahalad, say that the opportunity exists in emerging markets like India and there too, in the rural markets of India. My point of dissatisfaction with this approach is with treating the rural population as target market and not as a means to ensure a fair distribution of wealth.
The major indicator of India’s financial intents is the Annual Budget of India. The Finance Minister of India, Mr. Pranav Mukherjee presented the budget on 6th July 10, 2009 and spelled out a budget that clearly revolved around the single point agenda of the upliftment of the Bottom of The Pyramid. Increased allocations for JNNURM (Jawaharlal Nehru National Urban Renewal Mission) and NREGS (National Rural Employment Guarantee Scheme) are just a few indicators of this approach. Another important step taken by government is to subsidize the communication infrastructure set-up in rural India to ensure a faster reach.
Any considerate citizen of India would’ve appreciated this approach of India, Inc. to pave a path for the rural population of India to reap the same benefits as the urban population. Infosys Chief Mentor, Mr. Narayan Murthy appreciated the Finance Minister by saying, “heart of the UPA is in Inclusive Growth.”1 Through budget focus on agricultural growth by fertilizer policy and credit availability to the farmers at low interest rate, it has been tried to create an equated society of India.
But then why at the end of the day, Sensex (Bombay Stock Exchange Index) fell by 6% in a single day? And why has every other person from the industry criticized the approach adopted by Indian government? Why has the approach of India to make a rich brother help his poor brother been criticized by the “Industry Experts”? Why did The Wall Street Journal regard this budget as “A Budget for Second-Tier Developing Nation”2 ? Why would The Financial Times pass judgments about the Finance Minister by saying, “one would expect him to at least balance the politics”3 ?
I see only one reason for this – Expectation of immediate gains. In May alone, the FII to the Bombay Stock Exchange went up by $ 4.14 bn4 on the hopes of immediate gains when their economies back home were not stable and needed the cash badly for revival. But excess “money attracts more money” is the rule. So, the business logic makes sense only when it adds to itself – doesn’t matter what the country needs. And they expected Indian government to pave a path for them to realize their short term objectives, which obviously did not happen and the stock markets plummeted.
There is a major problem with the idea that all these organizations agree with – the fact that the “Opportunity lies at the Bottom of the Pyramid” where everybody looks at them just as potential customers. Several NGOs work at the grassroot level to take the benefits of government policies to the real beneficiaries. Not to miss out that the corporate also contribute to this, but only from a single perspective of “Tapping the untapped markets” or being “Prime-movers in markets of no-competition”. Never has any business organization thought about the welfare of the society in general and not as customers.
Why I am so against the “mutual benefit” theory of the Corporate Social Responsibility? The reason is that there is always an Information Asymmetry in Urban-Rural interaction and hence, there cannot be an equal “mutual benefit” for the corporates and rural population. And in such a case, it is the prerogative of the government to provide essential infrastructure to the rural population (and urban poor) to bring them at par.
So, the opportunity indeed lies at the bottom of the pyramid but let’s not consider them just a Market but a part of the family that we left behind in the run for money.

References:

1 “FM did a good job: Narayana Murthy”, The Economic Times, http://economictimes.indiatimes.com/FM-did-a-good-job-Narayana-Murthy/videoshow/4744647.cms
2. “A Budget for a Second-Tier Developing Nation”, By PAUL BECKETT, JULY 6, 2009, The Wall Street Journal, http://online.wsj.com/article/SB124687522344399695.html
3. “India’s Budget lacks a reform agenda”, By John Elliott, July 6 2009, The Financial Times, http://www.ft.com/cms/s/0be648c2-6a2c-11de-ad04-00144feabdc0
4. “India is now flooded with $1billion per week”, by Swaminathan S Anklesaria Aiyar, June 7, 2009, The Times of India

Copyright © 2009, Arun Sharma. All Rights Reserved.

For more articles by Arun Sharma, visit http://am-i-possible.blogspot.com

How To Survive The Recession, Then Fail The Recovery. The British Airways Story.

"How To Survive The Recession, Then Fail The Recovery"
“The British Airways Story”.
Last year BA reported a sharp rise of operating profit to £883 million, which in view of the rising fuel price and their falling market share, seemed to be bucking the downward global trend.
This year they reported a loss of £401 million.
Somewhere between the two reality probably lies, but when has reality ever paid out a performance bonus? And when have the published numbers ever reflected what is actually happening to a business?

A spokesman for BA, Mr Willie Walsh, said last month: “The combination of unprecedented oil prices, economic slowdown and weaker consumer confidence has led to substantially lower first quarter profits." “But,” He said ”British Airways is well prepared and has adapted its plans in the event of further economic uncertainty.”

These reported performance figures for BA and their smooth denial of concern reminded me of the last time BA management hit the news.

It was several years ago and Rod Eddington, the then chairman of British Airways, was responding on TV to concerns about the profitability of British Airways.
He was having a moan about how the budget airlines were cutting into his market share, but he was still being quite bullish about it. He told the interviewer how, in the last three years, he had cut the operating costs of British Airways by 5% and that although the competition was tough they fully expected to maintain their market share.

What he didn’t say was that in the past three years, to make that 5% saving, he had made redundant 16,000 members of his workforce.

He must have had some idea of the consequences of those redundancies for the remaining workforce. How did he think they felt about it?

Did he think they still felt good about working for British Airways?
Did he think they still felt their jobs were secure?
Did he think they felt proud of what had happened.

At the time Rod Eddington seemed supremely unconcerned by any of the consequence of his actions other than the ability to boast about the financial savings he thought he had made.

The men and women who worked for BA had. in the main been in their dream jobs. Pilots, who as schoolboys had pictured themselves wearing Raybans while they lounged around in the cockpits of big jets.
Cabin crew who used to dream of all the exotic destinations they would go to.
Baggage handlers and support staff who at the time could use BA to nip over to Paris for the weekend for the price of a cup of strong coffee.

And then, by making 16,000 redundancies, Rod Eddington had at a stroke completely changed the way that the remaining BA employees felt about what they did.

He had changed their attitudes and behaviours from those of a proud group of motivated people, dedicated to the service of their customers, to a bunch of disillusioned job hunters.
By making these redundancies British Airways changed the behaviour of their whole workforce from a powerful group of people who were proud of what they did, to an apathetic, untrusting workforce who were only interested in where they could send their next CV.

In the latest twist in the saga of the failure of BA we read of the appeal from the current management for the workforce of BA to give the company one months work without pay to try to save the company.

Since the days of Rod Eddington, management at BA have completely lost the loyalty of their staff by the way that they have behaved towards them, creating a morally bankrupt organisation, Make no mistake, this moral bankruptcy was caused by BA management.
Now we see the current management attempting to cash a cheque against the BA account that they themselves have already emptied.

Is this BA management completely misreading the way that the workforce feel about the company they work for? Or is this a cynical manoeuvre by management to deflect the blame for the failure of the company?

It is possible that the company will fail without these individual contributions from the workforce.
The workforce must be aware that it is just as likely that the company will fail even after they have put themselves into personal debt to try to keep it afloat, the only difference being that when the company fails, even after the workforce have given their time for free, the workforce will be in an even worse position to support their families.
Either way, management have already broken the trust of the workforce and since none of the management team seem to have offered to work for nothing it seems even less likely that any of the workforce will be persuaded to stick their necks out.

Do BA management truly believe that the workforce, working for nothing, will save them or are they working a spin, which when the company goes to the wall will enable them to say
“It was not our fault, We were let down by the workforce who would not support us.”

In this ongoing crisis we have to be very careful about what we do to survive and how that changes the way that our remaining workforce feel about they are asked to do.

Ride roughshod over the workforce during the recession because you can, and like BA you will have a very hard time continuing to trade even when the rest of the world has resumed doing business, Or, take care of your people when they most need it and they will take care of you when you need it.

We can’t have it both ways.

What goes around comes around.


Peter A Hunter
Author – Breaking the Mould
www.breakingthemould.co.uk

Its all about Money

It’s all about Money!

It is August. In a small town on the South Coast of France, holiday seasonis in full swing, but it is raining so there is not too much businesshappening. Everyone is heavily in debt. Luckily, a rich Russian touristarrives in the foyer of the small local hotel. He asks for a room and putsa Euro100 note on the reception counter, takes a key and goes to inspectthe room located up the stairs on the third floor.
The hotel owner takes the banknote in hurry and rushes to his meat supplierto whom he owes E100.
The butcher takes the money and races to his wholesale supplier to pay hisdebt.
The wholesaler rushes to the farmer to pay E100 for pigs he purchased sometime ago.
The farmer goes quickly to the hotel, as he owed E100 the hotel for usinghotel room for some family function in past.
At that moment, the rich Russian is coming down to reception and informsthe hotel owner that the proposed room is unsatisfactory and takes his E100back and departs.
There was no profit or income. But everyone no longer has any debt and thesmall town people look optimistically towards their future.
COULD THIS BE THE SOLUTION TO THE Global Financial Crisis?

Just In Time: Different Prespective

Hello Friends

I was recently preparing a Just In Time Training Module in my company. And my biggest challenge was how to explain it to high school pass operator.

So, the following two points I thought of:
1. JIT is like driving a sports car at a speed of 200 miles/hr. Imagine when you are driving a bicycle at the speed of 20 what is important to you. And in comparison when you are driving a sports car on the track what is important to you. I think when you are driving sports car the most important thing to you is Reliability of your machinery. When we are talking about JIT then Reliability doesnt come only under machinery, but the whole process means whole supply chain or value chain per se.

2. JIT is like a relay race where next player can't run till the earlier one hasn't handed over baton to him. This is in essence the Pull System which is pillar of JIT. Also it defines the very existence of Kanban system.

If you have any more ideas do lemme know.

regards
Prabal

Book Section: The Goal by Goldratt

I read this book, after i was recommended by my friends atleast dozen times.
I was surprised that this book is in story form, where the author has explained lot of management tactics via form of situations arising in front of our Hero.
I was more surprised to learn that this book was a textbook of MBA students in NITIEE.
It definitely acts as a source of inspiration to all management practioners in general and to operations guys in particular.

It is this book in which Goldratt founded the concept of Theory of Constraints.

A must read.

What is recession?

What is recession?

This story is about a man who once upon a time was selling Hotdogs by the roadside. He was illiterate, so he never read newspapers. He was hard of hearing, so he never listened to the radio. His eyes were weak, so he never watched television. But enthusiastically, he sold lots of hotdogs. He was smart enough to offer some attractive schemes to increase his sales. His sales and profit went up. He ordered more a more raw material and buns and sold more. He recruited more supporting staff to serve more customers. He started offering home deliveries. Eventually he got himself a bigger and better stove. As his business was growing, the son, who had recently graduated from college, joined his father. Then something strange happened. The son asked, "Dad, aren't you aware of the great recession that is coming our way?" The father replied, "No, but tell me about it." The son said, "The international situation is terrible. The domestic situation is even worse. We should be prepared for the coming bad times.." The man thought that since his son had been to college, read the papers, listened to the radio and watched TV. He ought to know and his advice should not be taken lightly. So the next day onwards, the father cut down the his raw material order and buns, took down the colourful signboard, removed all the special schemes he was offering to the customers and was no longer as enthusiastic. He reduced his staff strength by giving layoffs. Very soon, fewer and fewer people bothered to stop at his Hotdog stand. And his sales started coming down rapidly and so did the profit. The father said to his son, "Son, you were right”. “We are in the middle of a recession and crisis. I am glad you warned me ahead of time."

Moral of the Story: It’s all in your MIND! And we actually FUEL this recession much more than we think.