The Jet Airways imbroglio is a good example of how in a competitive marketplace the eventual result is one that benifits the end consumer. It is difficult to ascertain what went on between the mangement and the striking pilots, and perhaps best left to the imagination, but on the face of it, neither Jet Airways pilots nor the management come out in a positive light. Actually adding another dimension to this unpleasant display of immaturity were the competing airlines who true to free market economics hiked up their prices to ridiculous levels to accomodate the 'stranded' jet passengers! At a time when airline companies could have garnered a lot of goodwill by accomodating these passengers at nominal rates they choose to take the shorter and quicker route of 'making a fast buck' at Jet's expense!
Even whilst I agree that grieving pilots or for that matter any other staff have a right to protest - a strike when negotiations are on is not only a poor attempt at pressure tactics but completely uncalled for. At the same time Naresh Goyal calling them ' Terrorists' is also in bad taste - now that they have reached a amiacable solution these 'terrorists' are manning the Jet airlines fleet!!!
The government at a macro level can help the industry become profitable by lessoning the taxation rates on aviation fuel. The competing airlines could the next time round ( if there is one )show more sovereignity to their competitor in trouble- it could be them next!!!!
Monday, September 14, 2009
Thursday, August 20, 2009
Back in Malluland...
“Gods Own Country” said the board behind me as I walked out on to the sultry road with chaotic traffic and welcoming signs of 'BAR' all over on either side of the road.. “Things haven't changed much!” I thought on my visit to Kerela after a gap of 7 years. There was more of the familiar - my mind didn't have to do much of a recap - it was easy slipping back into the old familiarity - the Kappa and meen curry, the kitchen table and the alcohol interspersed with fish fry all seemed to seamlessly fall in place.
The next day as I got up early for my 7 o'clock meeting - I had another dose of how unchanged things still are - I waited till 7.15AM before I called up the person I was supposed to meet at 7AM. "I should be there in another 15 minutes!" on that optimistic note I waited until 8.15. The rest of the day followed a similar pattern. The way business is done in Kerela doesn't seem to have changed...what seems to be changing is the landscape - a lot of Mallu's who had gone to foreign shores are coming back to Gods own country to invest, grow and prosper - will these expats from Manhattan and Dubai change the way mallu's do business in Malluland or will they fall in step with them? Wait and watch is what I am doing but I must admit I am curious to know....
The wonderful thing about the trip was to see the orchids and the chrysanthemums growing like wild flowers all over the place, the peace and quiet in the by lanes where people still live in sprawling bungalows; and neighbours still worry about who is coming for dinner in the house next door and the way women still comb their hair -the twist and the curls are still the same! Less polluted, less noisy, cleaner then other cities in India and reasonably modern Cochin seems to me the ideal mix.
I've always maintained that a city can only be as good as the friends you have there - and as I settled down to an evening with friends I wondered how it would be to live in Kerela!
“Gods Own Country” said the board behind me as I walked out on to the sultry road with chaotic traffic and welcoming signs of 'BAR' all over on either side of the road.. “Things haven't changed much!” I thought on my visit to Kerela after a gap of 7 years. There was more of the familiar - my mind didn't have to do much of a recap - it was easy slipping back into the old familiarity - the Kappa and meen curry, the kitchen table and the alcohol interspersed with fish fry all seemed to seamlessly fall in place.
The next day as I got up early for my 7 o'clock meeting - I had another dose of how unchanged things still are - I waited till 7.15AM before I called up the person I was supposed to meet at 7AM. "I should be there in another 15 minutes!" on that optimistic note I waited until 8.15. The rest of the day followed a similar pattern. The way business is done in Kerela doesn't seem to have changed...what seems to be changing is the landscape - a lot of Mallu's who had gone to foreign shores are coming back to Gods own country to invest, grow and prosper - will these expats from Manhattan and Dubai change the way mallu's do business in Malluland or will they fall in step with them? Wait and watch is what I am doing but I must admit I am curious to know....
The wonderful thing about the trip was to see the orchids and the chrysanthemums growing like wild flowers all over the place, the peace and quiet in the by lanes where people still live in sprawling bungalows; and neighbours still worry about who is coming for dinner in the house next door and the way women still comb their hair -the twist and the curls are still the same! Less polluted, less noisy, cleaner then other cities in India and reasonably modern Cochin seems to me the ideal mix.
I've always maintained that a city can only be as good as the friends you have there - and as I settled down to an evening with friends I wondered how it would be to live in Kerela!
Monday, July 20, 2009
Teach India - Vijay Ho!
Listening to Hillary Clinton and Amir Khan with Arnab Goswami on television one could not but feel involved, enthused and positive about the success of the “Teach India “movement. I felt proud of every single person in that room who was giving some of their precious time to do their bit for this noble cause
According to Clinton, "Education is a great equalizer. We must do more to convince all of the importance of education and join forces to ensure equality of opportunity". As she talked my mind went back to Malcolm Gladwell’s outliers and I could not but help wonder if the intensity and passion with which Indians have joined hands to “Teach India’ will transform lives or will the opportunities still elude the underprivileged inspite of the education….. Agreed that this movement is a great leveler in terms of the bridging the gap between talent and opportunities – but will the opportunities come their way in the real world? Education is a great equalizer – I endorse that but in order for that to translate into a more equal society we must do more to ensure equality of opportunity.
Some good points by Amir too – Teachers must be the top paying jobs –unless we have good teachers we are not imparting the best knowledge. A revolutionary thought by Amir was that "The most important thing about education is that it should encourage students to think. It should create people with minds to take humanity further. Today, our educational system emphasizes more on memorizing,”
While we all know this for the brand ambassador of the movement to articulate this , a dynamic education minister in the drivers seat and the might of the TOI behind this movement I believe India is on its way to achieving greater heights in terms of equal opportunities both in education and subsequently in the real world!
According to Clinton, "Education is a great equalizer. We must do more to convince all of the importance of education and join forces to ensure equality of opportunity". As she talked my mind went back to Malcolm Gladwell’s outliers and I could not but help wonder if the intensity and passion with which Indians have joined hands to “Teach India’ will transform lives or will the opportunities still elude the underprivileged inspite of the education….. Agreed that this movement is a great leveler in terms of the bridging the gap between talent and opportunities – but will the opportunities come their way in the real world? Education is a great equalizer – I endorse that but in order for that to translate into a more equal society we must do more to ensure equality of opportunity.
Some good points by Amir too – Teachers must be the top paying jobs –unless we have good teachers we are not imparting the best knowledge. A revolutionary thought by Amir was that "The most important thing about education is that it should encourage students to think. It should create people with minds to take humanity further. Today, our educational system emphasizes more on memorizing,”
While we all know this for the brand ambassador of the movement to articulate this , a dynamic education minister in the drivers seat and the might of the TOI behind this movement I believe India is on its way to achieving greater heights in terms of equal opportunities both in education and subsequently in the real world!
Monday, June 29, 2009
Light on the horizon
The induction of Nandan Nilekani ( into a position similar in rank and powers to a cabinet minister ) to head the Unique Identification Authority of India, an agency working on a project to give every Indian a unique identity card, is significant to say the least. It introduces a new trend in governance - of trying to tap from the corporate world; talent and experience that could show a new of implementing and shaping bureaucracy and progress.
As a layman one area of possible discomfort could be turf related problems - bureaucrats like Montek Singh Ahulwalia and others who seen governments come and go will not take very kindly to Nilekeni being the man in charge. For Nilekeni himself working within the framework of the GOI to deliver results is a different challange then running Infosys.
Only time will tell whether he will deliver on the desired objectives and vindicate the governments trust. But for the moment there is no doubt that the equations have changed and perhaps for the better!
Wednesday, June 17, 2009
Indomitable Spirit
“The only difference between successful people and unsuccessful people is extraordinary determination.”
--Mary Kay Ash, Entrepreneur
In all likelihood 99 out of 100 startups fail – but that 1 success inspires another 99 and the story goes on….. From my experience of being a ‘once upon a time’ entrepreneur here is my take on what it takes to succeed in a startup entrepreneurial venture:
Business Model: A revenue model that supports sustained growth with profits has a greater chance of surviving then just a ‘great idea’! Identifying the right opportunity and building a sustainable business model around it is the first and the biggest challenge.
Balanced Team: You are as strong as your weakest link - a core balanced team with the right skill sets and vision.
Information flow: As a entrepreneur your time must be spent in creating value – processes, reports and reviews are perhaps more important then even delegation and motivation.
Prioritize Spend: Prioritize on your goals and spend accordingly. However make sure you are not penny wise pound foolish – manage your CAPEX and OPEX independently and make decisions on them based on different yardsticks.
Access to Funds: You will need money to scale up – if you wait to reinvest from profits, you will probably lose the opportunity. Identify funds - seed, angel, VC or PE, so that you do not lose out on that opportunity that would make you the 1 out of 99 that succeeded!
As a country we need to respect the tremendous amount of positive energy and remarkably adventerous entrepreneurial people we have – I am always amazed by the ingenuity of the Indian enterprenuer – be it the local chaiwala, the textile showroom owner or your sauve www.xyz.com executive!
Most small ventures in India do not survive/grow, partly because they are smothered by outdated rules and regulations and crippled by poor infrastructure. Funding from banks and other sources is difficult to get and the red tape and bearacracy puts the brakes on fast track growth. All these factors besides being a phycological deterrent raise the cost of doing business thus impacting bottomline.
India has to get the big picture right and fix the small details because the devil is in the details! Here’s a toast to the “spirit of the Indian Entrepreneur’ who flourishes despite it all :)
--Mary Kay Ash, Entrepreneur
In all likelihood 99 out of 100 startups fail – but that 1 success inspires another 99 and the story goes on….. From my experience of being a ‘once upon a time’ entrepreneur here is my take on what it takes to succeed in a startup entrepreneurial venture:
Business Model: A revenue model that supports sustained growth with profits has a greater chance of surviving then just a ‘great idea’! Identifying the right opportunity and building a sustainable business model around it is the first and the biggest challenge.
Balanced Team: You are as strong as your weakest link - a core balanced team with the right skill sets and vision.
Information flow: As a entrepreneur your time must be spent in creating value – processes, reports and reviews are perhaps more important then even delegation and motivation.
Prioritize Spend: Prioritize on your goals and spend accordingly. However make sure you are not penny wise pound foolish – manage your CAPEX and OPEX independently and make decisions on them based on different yardsticks.
Access to Funds: You will need money to scale up – if you wait to reinvest from profits, you will probably lose the opportunity. Identify funds - seed, angel, VC or PE, so that you do not lose out on that opportunity that would make you the 1 out of 99 that succeeded!
As a country we need to respect the tremendous amount of positive energy and remarkably adventerous entrepreneurial people we have – I am always amazed by the ingenuity of the Indian enterprenuer – be it the local chaiwala, the textile showroom owner or your sauve www.xyz.com executive!
Most small ventures in India do not survive/grow, partly because they are smothered by outdated rules and regulations and crippled by poor infrastructure. Funding from banks and other sources is difficult to get and the red tape and bearacracy puts the brakes on fast track growth. All these factors besides being a phycological deterrent raise the cost of doing business thus impacting bottomline.
India has to get the big picture right and fix the small details because the devil is in the details! Here’s a toast to the “spirit of the Indian Entrepreneur’ who flourishes despite it all :)
Wednesday, June 10, 2009
Jaago Re
India is a mediocre country with a huge pool of intelligent individuals who have made it big here and abroad. How can a country of above average intelligent people build a mediocre country? As we see so much positive energy around us about the ‘Emerging new India’; here is what I think we need to focus on as a country to transition from a follower to a leader.
Our lack of a sense of national pride is one of the biggest impediments and the key reason for our current state of affairs. One of the things I noticed on my first trip to the US was the number of US flags flying from buildings both govt and private! In India we all seem to work as pockets for individual growth and hence we have success stories of individual brilliance whether in industry, social activism or arts. We seem to live here but not belong! It’s what I would call a difference between having a house and staying in a home!
If we have a sense of pride in being Indian we would change our attitudes to the way we publicly reward and punish high profile people. We would stop rewarding mediocrity and start punishing criminals regardless of their contacts as these set the standards of omission and commissions. The ‘non punishable’ factor is what I call this syndrome for want of a better word – Ramalinga Raju, the Bihar train burning culprits, Narendra Modi for his infamous carnage, Ketan Mehta…..the list is endless. The common thread between all these law breakers is their political nexus. As the government tries to inculcate accountability and remove the ‘chalta Hai’ attitude of our politicians – an important issue that they should look at is breaking this nexus. The law of the land should hold good for all and law breakers should be punished and within a reasonable time frame.
Our lack of focus on quality and inadequate vision at all touch points of growth restrict us to the immediate making us myopic - be it Industry, policy, politics, arts or our deplorable state of infrastructure. The IT industry catapulted us into the big league but even today we do not have a Google or a Yahoo or a Microsoft to our name! Internal overall growth and intelligent external positioning is a combination that emerging India should work towards.
Our education institutes seemed to have mushroomed faster than mushrooms! And yet it does not address the needs of our industry – poor quality curriculum, sub standard quality of teachers and facilities result in poor output of students! Our education system should include courses that cater to the new opportunities. Also at the grass root levels more than regular education entrepreneur opportunity related vocational courses should be introduced.
Today we can do some of this if not all – will we???????
Our lack of a sense of national pride is one of the biggest impediments and the key reason for our current state of affairs. One of the things I noticed on my first trip to the US was the number of US flags flying from buildings both govt and private! In India we all seem to work as pockets for individual growth and hence we have success stories of individual brilliance whether in industry, social activism or arts. We seem to live here but not belong! It’s what I would call a difference between having a house and staying in a home!
If we have a sense of pride in being Indian we would change our attitudes to the way we publicly reward and punish high profile people. We would stop rewarding mediocrity and start punishing criminals regardless of their contacts as these set the standards of omission and commissions. The ‘non punishable’ factor is what I call this syndrome for want of a better word – Ramalinga Raju, the Bihar train burning culprits, Narendra Modi for his infamous carnage, Ketan Mehta…..the list is endless. The common thread between all these law breakers is their political nexus. As the government tries to inculcate accountability and remove the ‘chalta Hai’ attitude of our politicians – an important issue that they should look at is breaking this nexus. The law of the land should hold good for all and law breakers should be punished and within a reasonable time frame.
Our lack of focus on quality and inadequate vision at all touch points of growth restrict us to the immediate making us myopic - be it Industry, policy, politics, arts or our deplorable state of infrastructure. The IT industry catapulted us into the big league but even today we do not have a Google or a Yahoo or a Microsoft to our name! Internal overall growth and intelligent external positioning is a combination that emerging India should work towards.
Our education institutes seemed to have mushroomed faster than mushrooms! And yet it does not address the needs of our industry – poor quality curriculum, sub standard quality of teachers and facilities result in poor output of students! Our education system should include courses that cater to the new opportunities. Also at the grass root levels more than regular education entrepreneur opportunity related vocational courses should be introduced.
Today we can do some of this if not all – will we???????
Thursday, June 4, 2009
Indianomics - Capitalistic Finally!
Ironical that the founder of capitalism USA is turning socialistic and India who in all these years could never make up its mind which way it leaned is becoming a booming capitalistic society.
And so we have the US government pumping money into a Lehman Brothers or a Citibank or GM to save it from collapsing and rendering thousands jobless. Jobs were saved but no wealth was created – how long can these jobs be sustained? A case in point is GM registering bankruptcy and the govt has to step in again – to save jobs! Does this remind you of the Russia before Gorbochev!
Pumping money without regulation and clear strategies will not yield results as the events of the past few months are proving in the US. When the state decides how much each person earns regardless of contribution that is regulation but when the state while investing into a business venture puts a conditional strategy in place- according to me that is not regulation but capitalism – maximizing ROI! What the US is doing looks so similar to the India in the 70’s and 80’s when govt pumped crores of rupees to keep loss making PSU’s afloat to ‘save jobs’ without any recovery in sight.
And look at India – the Economic Times headlines today talks of Reforms II “begin with the selling off of the loss making PSU ITI”! And the Reserve Bank will probably use this money to reduce our current fiscal deficit. So here we have in India a reverse of what the US is doing – we are disinvesting in loss making PSU’s and opening them up to free market forces to compete with the rest and survive if they can.
India’s Finest Economic hour is perhaps just around the corner!
And so we have the US government pumping money into a Lehman Brothers or a Citibank or GM to save it from collapsing and rendering thousands jobless. Jobs were saved but no wealth was created – how long can these jobs be sustained? A case in point is GM registering bankruptcy and the govt has to step in again – to save jobs! Does this remind you of the Russia before Gorbochev!
Pumping money without regulation and clear strategies will not yield results as the events of the past few months are proving in the US. When the state decides how much each person earns regardless of contribution that is regulation but when the state while investing into a business venture puts a conditional strategy in place- according to me that is not regulation but capitalism – maximizing ROI! What the US is doing looks so similar to the India in the 70’s and 80’s when govt pumped crores of rupees to keep loss making PSU’s afloat to ‘save jobs’ without any recovery in sight.
And look at India – the Economic Times headlines today talks of Reforms II “begin with the selling off of the loss making PSU ITI”! And the Reserve Bank will probably use this money to reduce our current fiscal deficit. So here we have in India a reverse of what the US is doing – we are disinvesting in loss making PSU’s and opening them up to free market forces to compete with the rest and survive if they can.
India’s Finest Economic hour is perhaps just around the corner!
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