Why no one wants to work in a factory anymore

Yesterday, I went to a well known synthetic fibres plant on the outskirts of Mumbai. This plant, owned by a premier Indian business group, had seen its haydays in the 80s. But now, with expansion planned elsewhere in India (Uttaranchal, Rajasthan etc), there's a recruitment freeze. New workers are taken on a paltry sum on contract basis, and made permanent after 5 yrs. No wonder then, that even a low paid worker wishes his children to do anything but follow in his foot steps.

Of course, people are still dying for work, and the 'no one' whom I refer to would be the English educated(not necessarily English speaking!), cosmopolitan metro living generation. A B.Sc prefers to work at Wipro rather than be a chemist at a factory. The pay differences are stark, but what is even more compelling is the sheer 'shame' of confessing to your friends that you work in a factory.

A friend of mine got placed at Asian Paints straight out of IIT JEE, and was desperately hoping for a change. Residing on the outskirts of Mumbai, he had little enthusiasm in telling all and sundry that he would be working at Bhandup/Ambernath. While his story had an happy ending(he got into one of India's best Bschools), this is not true for everyone.

Well intended policies,unintended consequences

1. People are better educated, live longer and face a better quality of life
2. Phrased this way, this is difficult to argue with these propositions. 
3. But when thought of as
1. Poorly educated unemployable students unwilling to get their hands dirty with 'real work', deferring joining the workforce for masters degrees of questionable value. 
2. People living healthier life, consuming more food/resources AND facing income deficit in their old age, with more claimants on land. 
3. Infrastructure encouraging more cars, higher fuel import/subsidy bill, pollution etc
4. Then it would show how the healthcare, education & infrastructure boom may implode India
5. Already, some signals of these consequences are apparent
1. Farmers in the grain belt(Punjab/Haryana) incurred more wage cost due to competition from NREGA, so they suffered lesser yields AND higher costs, so now want a drastic hike in MSP, which will increase inflation, and in turn the inflation linked NREGA wage. Vicious cycle
2. The war for minerals being played out in the poorest tribal areas, is partly due to this increase in resource demand, due to consumerism

      As one of those consumers in the above post(though better educated hopefully!), I cannot really condemn         this income levelling measure. All I can say is that if the consequences of some policies were thought out
     and debated as extensively as the Lokpal Bill is, these effects may have been reduced.  

Prof Anil Gupta-the true face of modern India.

Before joining IIM-A, I had heard about Prof Anil Gupta's yeoman work in the Honeybee network, Shodh Yatra and traditional knowledge. All these issues being related to 'rural India', I'm sorry to say that I imagined him as a do-gooder fuddy duddy, who espoused the traditional way of Indian life.

But when I got to know more about him(he has given 2 TED talks and takes 2 electives at IIM-A), I was quite stunned at his extent of tech savviness. Be it his Blackberry, netbook or extensive use of online databases, Prof Gupta really leverages technology to the fullest to achieve his objectives. And while others give lip service to open sourcing, Prof Gupta believes in using students/academic associates to the fullest to help his National Innovation Foundation, update course material, co author research etc.

And when you hear him speak or lecture, the extent of erudity is simply amazing. Not that other IIM-A faculty are any less, but simply he's in a different league altogether. Instead of launching into another anti West tirade, he backs up his arguments with logic and facts. And his philosophy to learning is more the Socratic way-that the students critically question their peer's presentations(instead of mutual back slapping).

So why do I annoint him the true face of modern India? As we immerse deeper into the modern technologies, the risk of losing touch with our traditional language, values, customs etc increases. But the ideal way is to use modern technologies to enrich the rich cultural heritage. For instance, Geodisic purchased the rights of the famous magazine Chandamama, and plans to leverage various platforms to fully monetize it. Likewise, Prof Gupta uses novel approach to keep traditional knowledge from dying, and straddles the new world and old India with equal ease. 

Beating the 'Knowing Doing Gap'

Action is the real measure of intelligence.
Napoleon Hill

The premise behind universal education, financial literacy and other forms of training is that if people know the right thing(or even what is considered as wrong), then they would ensure that the right things happen. But is it true? If it were, lesser people would be obese, addicts, procrastinators etc.  


In investing, this is especially relevant. In boom periods, investors readily succumb to herd mentality and irrational exuberance. But when the bust presents attractive buying opportunities, then they freeze and fall prey to analysis paralysis. The best laid plans fall apart, and they sit on the sidelines. Now, one way to defend is that one should not catch a falling knife by investing before the bottom. But given that markets tend to upward correct very rapidly, the chances of losing out on the rebound are more than being stung on the downward spiral. Of course, buying should be done only when the valuations are otherwise quite attractive. Some real life examples in the Indian context of these happening-at different times in the past 3 years

• False rumours triggering crash:--ICICI Bank, Orchid Chemicals.
• Stock trading to less than near cash value of investments:- Piramal Holdings
• Dividend Yields > 8%;- Shipping Corporation, Ashok Leyland.
• M&A concerns leading to steep fall;-Tata Motors, Ranbaxy, Patni
• High grade debt at high yields:- Tata Steel/Tata Motors NCDs issued in 2009

James Montier and Dr Atul Gawande straddle different fields-investing and medicine-but both agree on the importance of a disciplined process. And that is where checklists and preset actions(buy orders, investor lockin periods, SIPs) help ensure action where it is justified rationally during normal periods, but where fear may stall it during burst.

In non financial contexts-losing weight, deaddiction etc-external support in form of counseling, support groups, family backing etc have been shown to help. But finally, will power and certain preset actions(charity to those one detests for breaking the 'knowing doing' gap, delayed gratification) carry the day.

Do process poor companies pay their people higher?

The title would seem quiet controversial and academic, so let me clarify my stance. I have empirically noticed that as the maturity of an industry improves, the average compensation falls. While this may be attributed to lower profits, the reason according to me is that as the process maturity goes up, the value added by the individual employee is lower. No wonder then, that organization stress 'process' and 'knowledge capture' and are wary of the lone ranger. Below are the examples I adduce in support of my theory

• Investment banks and consulting firms are very profitable, but explicitly put their people over process, this increasing their dependence on stars. While retail banks/commercial  have refined their processes to such an extent that nobody is indispensable. This in my view is a contributory factor to differential pay.
• New entrants in a market pay supernormal wages to lure established people from their competitors, to set up processes/systems. This is another form of substituting people for process in the short run. 
• IT companies used to be the best paymasters in India till their process maturity attained stellar heights. And then they realized that they could easily find people to fit the process. Hence, expanding the talent poor(Wipro hiring B.Scs, training) became the option to offering huge salaries to poach. 
• Market leaders(HUL, TAS, HDFC etc) are rarely the best paymasters. In fact, they deliberately benchmark themselves at lower than 100 percentile of industry pay, because they feel they are giving valuable training in return.  

This topic seems interesting enough to do a time series analysis-maybe it already has been done before. But the takeaway from this is that before career decisions, take this factor into account as well. 

The vocabulary premium-how the digital words rewards command over keywords

The other day, I was reviewing the statistics of this(and others) blog of mine, and it struck me that the most popular posts were the ones with jargon/keywords(thus increasing the traffic from Google and other search engines). The reason for this was perhaps that those posts showed up prominently in the results of certain keywords.

Other non trivial examples of this in practice are

• Journals insist on keywords for ease of indexing, but increasing with them going digital, these keywords are often most valuable to quickly locate the paper/article or to invite serendipity by browsing all content under a particular keyword. 
• Google Advertising has a successful 'Ad Words' program where advertisers bid for the right to exhibit their relevant content alongside the search results for certain keywords. 
• As the cybersquatting and legal domain name sale data shows, those who are creative enough to register popular domain names well in advance, can mint millions. 
• Blogs have a special term for keywords as 'tags','categories' etc so that the blog visitors can see similar content grouped together. 
• As veteran search engine users would have uncovered, an ounce of correct and comprehensive keywords can save a pound of laborious searching over hundreds of pages.  
• For patent landscape analysis or corporate name search, one needs creativity and a good vocabulary for finding out 'simillar' categories and names. 

An Indian Disney-a far fetched dream

Few kids(atleast middle class ones!) would have grown up without seeing/hearing of the famous comic characters Mickey Mouse/Donald/Goofy, and watching a diet of famous children's films Snowwhite/101 Dalmatians etc. These content examples are eternal, which is a testimonial to the quality of their creator and IPR managers. For decades, Disney has stuck to its proposition of clean family oriented media, and has profitably monetized it. Every generation discovers that content anew, and often even veteran cynics would get goosebumps from watching some of those films/serials. The runaway success of dubbed versions, show that Disney has managed to transcend barriers to communicate.

In contrast, India has very few such examples. Barring Ramanand Sagar's famous 'Ramayan'/'Mahabharata'(which are now sold by Moser Baer in DVD form), Amar Charitra Patrika comic characters(Suppandi) & Chandamama, one would be hardpressed to name such long lived content. Now, kids grow up on a diet of dubbed Western serials(like Disney ones) or else Hollywood films.

I recently watched the 1991 blockbuster 'Saudagar' starring Dilip Kumar & Raj Kumar. The film is a bit too long for today's standards(3hrs+) but has 2.8lakh views on Youtube(http://www.youtube.com/watch?v=JRTgTzUa-aA&feature=watch-now-button&wide=1). The film tags at heartstrings in multiple ways-music(that haunting song imli ka bhuta), friendship, enemity, becoming friends on Holi, romance, betrayal and death. This film, as many others before it, make today's films seem shallow by comparison. I hasten to clarify that the old school films(pre 1990s) were quite unrealistic(even in Saudagar where do you have a king ruling in 1991 India?) but met the viewers taste. In contrast, today's viewers especially the multiplex crowd(an increasing number) like to read/watch stories about themselves. And shorter the movie the better. That cuts the scope for the director to comprehensively tell a story. A Bheja Fry or a 'A Wednesday' are certainly great films, but are unlikely to stand the test of time, like how Saudagar/Sholay have done.

Why should we care? Media companies(book publishers, film producers, newspapers) are increasing facing shorter life cycles and viewer saturation. Deprived by piracy of the once monumental initial week collections/book sales, they are dependent on backlist and extended period content exploitation. Given this scenario, quality should be at a premium. Of course, who defines 'quality' is a tricky question. If the sole objective is to take out a 1yr P&L, then even a low budget masala B grade film will do. But for creating a sustainable media empire, a Saudagar is likelier to do it than a Singham.

What the film 'Rajneeti' can teach us about business and life

What do you get when you cross the 'Godfather' and the famous Indian epic 'Mahabharata'? An awesome hybrid called Rajneeti, made by one of India's best independent film makers Prakash Jha.  Read about the film on Wikipedia(http://en.wikipedia.org/wiki/Raajneeti). It resembles Godfather in the characters(2 brothers-one hot blooded like Sunny Corleone and other cold blooded planner like Michael Corleone who reluctantly takes power after the death of his brother), action scenes(policeman trying to murder the godfather, revenge, death of characters in car blast). Mahabharata resemblance is in the successor nomination(favouring brother over son like how Pandu was seen the successor,  abandoned child(like Karna, Ajay Devgan), Krishna like Nana Patekar, Duryodhan like Virendra Pratap Singh etc.I could go on and on but it is best to read the books/watch the films.

But some lessons one can takeaway from this.

1. Even the 'good guys' play bad:- vote rigging, murders, suppressing dissent(thus provoking cousins to revolt), tampering with electoral nominations, false promises 
2. Playing to the gallery:- The public court was used to great effect in the film('janata ki adalat') and it applies even more in this media savvy age
3. Organization counts:- Nana Patekar's character proved the difference between the two warring families, as he supplied the cash/brainpower/organizational on ground power. He played the dual role of Shakuni(supporting his nephews, grey area) and Krishna(convincing his nephew Samar to shoot the character representing Karna). 
4. You get burnt if you play with fire:- Entering politics(or business for that matter) means your actions will be endlessly scrutinized. Personal and business attacks become part with the course. 
5. Crush the enemy even after an overwhelming win:- In the film, even on the eve of the landslide victory, the enemy is lured to its death. This ensures no lose ends. Even in life, going that last 1% is important('attention to detail'!) to ensure 'no comebacks'. 
6. Good and bad is shades of grey: Most versions of the Mahabharata(barring Ira Pande's Yuganta) lionize the winners(Pandavas) at the expense of the losers. Prakash Jha's sensitive shooting and plot, does show the viewers that injustice was done on both sides, and that it is the winner that dictates the history books!

 This post is atypical for me, and probably more on the cynical side. Still, this is what I feel.

Is Facebook becoming the new Orkut?

I know Orkut is still quite popular in Brazil and a few other places; but Facebook is the 'in thing' for quite some time. But unless it reins in the commercial aspects from marring the user experience, it runs the risk of losing its way like Orkut. When launched, Orkut was the only social networking site of its kind, and soon became a craze even in India. But if things proceed at their present

Facebook WAS designed initially for connecting campus residents closely, but now incoming batches make this a circus. People whom you have barely met before(like long lost school juniors/seniors), those whom you have not seen(incoming junior batch), distant relatives-everyone joins in the feeding frenzy to befriend as many people online as possible. A person who makes 300+ Facebook campus friends, may not even walk till the next dorm to chat in person. And this ruins the experiences. Would YOU want random friend updates from someone whom you hardly knew, but whose friend invite you had accepted for fear of not upsetting him/her? Like how Facebook allows you to filter your information for a select circle, it is high time for doing so when it comes to updates.

And then, the ever ballooning apps irritating updates, privacy controversies etc, do nothing to enhance the reputation of Facebook. They have remained 'cool' so far largely thanks to the user friendly interface and hip image, but if the number of ad breaks/commercial space usage increases, I for one would reconsider.

Takeaway:-Facebook/Orkut(ok to be fair most social networks) stretch the meaning of 'friend'. It is a personal choice whether you want a small network whom you know well/have met in person; or whether you want the equivalent of a huge visiting card collection of strangers. 

We do not need an Indian Lee Kuan Yew-not even Anna Hazare

As people well acquainted with Singapore would know, its first prime minister Lee Kuan Yew is credited with transforming the marshy swampland into the world's best island state-a centre of finance, tourism and business in its own right. Yet, this has come with some costs. Mr Yew's party, the People's Action Party(PAP) has a dictatorial electoral hold in Singapore. And to a large extent, Mr Yew's approach towards the opposition has helped this iron hold. In the May-2011 General Elections, when a constituency Aljunied voted in the opposition,, Mr Yew said that the voters would 'repent' and that their locality would eventually become a slum. While he later apologized, those remarks exposed the depth of contempt he felt for the opposition. I draw this analogy with the present Lokpal bill morass in India. While perusing the Lokpal bill version of the Civil Society members, the overall tone and proposals struck me as patronizing and insulting. Sample a few of these proposals:-

1. The Lokpal Commission chairperson/members should have a history of fighting against corruption
2. The retiring members will have a role in selecting their successors
3. Even the Prime Minister/Executive is expected to accept without demur, the Lokpal resources demand etc. Yet, they expect total independence from the Government. 

I accept that the very need of the Lokpal has arisen because of the breakdown of other civilian institutions, and that only an independent institution answerable only to the President is likely to survive the test of time(Election Commission/RTI Commissioner etc). Also, the bill clearly aims to preempt the delay tactics which the bureaucrats are so well known for(like not notifying bills into law, filling up vacant positions late etc), and also aims to confer true powers and independence to the Lokpal. 

We need a strong yet 'moral' person to carry this out. Anna Hazare would probably make a good Lokpal, but there are certainly others out there more qualified in governance, with better track records. Also, history is filled with examples of initially well intentioned initiatives, which later degenerated. If we are unhappy with the quality of our legislators/bureaucrats, then the way forward is electoral reforms, criminal law reforms, justice delivery changes, policy framing etc. Leapfrogging them, is not a good suggestion because democracy works on the basis of representativeness. 'Unsuitable' representatives get elected(like criminals), so the solution is probably to impose eligibility restrictions then. 

As it stands today, the Lokpal will be a super body. While the threat of dismissal by the President always holds, the moral standing then may not permit such a thing(especially if the President is like minded)!. And this is quite risky. 

The world's only technocratic dictatorship-the unique tale of Singapore

While reading the Economist's article(http://www.economist.com/node/18586804) on how Singapore had successfully made itself into a finance hub, some of my experiences here(as well as observing the election ruckus here) led me to write this post

1. Singapore IS a one family dictatorship:-If you define dictatorship as a oligarchic single family rule, then Singapore does fit the bill. One man(Lee Kuan Yew aka Minister Mentor) ruled Singapore till 1990, and is accused of squashing politically opposition to the extent that when the opposition won 6/87 parliament seats, there were claims of 'paradigm shifts' happening. MM's son is the present Prime Minister, with little signs of succession change. To be fair, they have achieved this de-facto(and not by military force) because they have performed.
2. But it uses technology well:- As any user of the public transport system would attest to, it has been designed with the user in mind-as have ALL public utility services. Not many places can claim that. And the public services use technology amazingly well like SingPass etc. Also, the broadband speed, power, water supply etc is all good.
3. And has low corruption:-Barring the usual crony capitalism examples(ministers/MPs holding on to Govt corporation posts despite being the highest paid politicians globally), Singapore corruption is virtually non existent(I say virtually only because no system is 100% safe)

It does allow political dissent(that is why concerns are aired in the press AND I can write this post). But in a system where a party getting 60% of the votes can win 81/87 seats, there seems something wrong with the system itself. I'll leave you to Google the electoral system here.  As someone famously said, why care what colour the cat is as long as it catches mice?This Faustian bargain seems to exist here, and had lasted for seeming eternity till the first cracks surfaced in 2011(post economic crisis) leading to the loss of a parliamentary constituency(5MPs). For the sake of the world, I do hope this unique experiment continues. After all, this is perhaps the best functioning and cheapest run Government in the world and it is a pity to see it fall.

Jaywalking, eating in buses and other tales of Singapore

After my earlier posts on the whole process orientation of Singapore, some of you may have got the impression that Singapore is nothing more than Big Brother in the way it monitors its citizens. Well, the reality is a bit different. I saw people jaywalking with impunity and even sometimes eating food in the buses. Now, given that the police are so scattered, and that CCTVs rely on sampling with little monitoring, it is understandable that people can break the law without getting caught. But the penalties for getting caught are immense. The SGD 500 fine for eating in MRT/buses for instance, ensures that the person will have his costliest meal IF caught. The deterrent factor apart, I noticed that even law abiding citizens do follow the lead of the first rule breaker-this is particularly true in case of jaywalking(crossing the road even when red light to pedestrians).And that is why I guess Singapore has this zero tolerance to such low impact offenses, because they are similar to Stephen Leviit's broken window analogy-if left unattended will encourage the repetition of these offenses. 

Some interesting quirks about Singapore

To an Indian(or any other South Asian for that matter), Singapore does take some time to adapt to. Some apparent oddities do get sorted out once you take some effort to understand why. With that in mind, I elaborate on the following things:-

1. People wear very short pants/shorts close to jockey length! This is apparently due to the heat but then India sees worse.So I guess it is a cultural thing. Do not pass any cultural judgements on people here for merely wearing skimpy dresses! 
2. Fresh food is costlier than packed food because Singapore imports virtually everything(save bread) from milk to apples to meat, from Malaysia/Australia etc
3. Veg food is costlier than non veg again because per gram of imported raw material,non veg is 'chunky' and yields a better return
4. Drinking from the tap is safe unlike some other places
5. There is silence in the public transport/places because people are hooked on to their smartphones all the time. Unlike other places where complete strangers can(and do) strike up conversations on the commute, here people are too engrossed in their mobiles(in general) to do anything else. Do not get too lonely but find something else to do. When in Rome..do as the Romans do!
6. Elections are virtually a farce here with little voter interest, a strong ruling party(in power since independence) and a fragmented opposition. To its credit, the ruling party has not faced any corruption scandals or major issues, and has guided Singapore through thick and thin. So I guess there is something to be said for good governance. The only minus is that though political debate does exist, it barely translates into a constructive political opposition
7. There is virtually no home news here. Since Singapore is this goody-goody place with little crime/turmoil/active politics, there is very little interesting news. And the selection of domestic newspapers is quite low, most published by Singapore Press Holdings(SPH)
8. Right from the modular furniture, to the garbage chutes/bins in apartments, everything is mechanized to the last T. You could conceivably live without ever dealing with a human being! To its credit though, this plug and play approach makes it easier to settle into.

Avoid that $30phone call-and other money saving tips in Singapore

As shown by the remarkable lack of price comparison sites, Singapore is NOT a price sensitive shopping hub-and these tips may seem incongruous-but they may be valuable to new expats and so I'm posting it.

1. Veggies please check that the cheese spread you buy does not have garlic. Generally it does
2. That 'curry' flavored noodles you may pick up is NON VEG and it has a weird taste.
3. Purchase household need/food items from Mustafa Centre. Even electronics/durables are often cheaper there. For example, milk packets costing $1.7 there sell for $2.7-$3.5 elsewhere
4. The minimum cab flagdown fare is $2.8, so unlike India, even short distances do not make sense by cab
5. Use the gothere.sg site for superb directions(including waiting times) on how to use public transport to commute to places unknown also
6. The amenities here are so easy to get-even an apartment/condo will do and a service apartment is actually a waste. The entire set up is virtually plug and play with extreme ease of getting internet, TV etc
7. Take photos at home-here the passport photos cost $6 for 4 copies(!) and the normal ones are not much cheaper.
8. Use the ISD code provided by your operator(like 018/021 etc) to get that concessional ISD rate to India, else pay $2.5/minute or more. I speak from experience.
9. Do your shopping in Fairprice shops rather than 7-11s(of course Mustafa is first option)
10. For shopping in the Orchard Road/other electronics shops, do your price search online for atleast a start. Then you can haggle down the rates which are as high as Lamington Road/Fashion Street(initially)

The quest for 'interesting work'-will it ever be met?

This genesis for this post came from a recent debate with a colleague about the linkage between interest in work, attention to detail and the resultant mistake(s). In that discussion, I realized that like many others of my generation, I was guilty of wanting to pick the work I wanted to do, and paying 100% attention only to that! When I spoke informally later on this subject to the recruiters, even they voiced the view that interact with the younger generation(school/college/post grad etc) and one resounding message which comes out is the zeal for work that 'adds meaning', 'is interesting' and is non routine. While I agree that few people would want monotonous clerical jobs by choice(when they are capable of much more), the fact remains that no one can be a CEO from the entry level itself-unless he sets up his own organization. In any setup with division of labour, people at the bottom end of the totem pole('entry level') do get the short end of the stick, in terms of initially mind numbing routine tasks till they prove themselves. After all, what better(and safer) way for the employer to assess the obedience, commitment and dedication of the employee, than to assign such work? That is why fraternities have 'rites of passage', student bodies have 'hazing'-all with the intent of making the new entrant 'pay his dues'. Assigning routine work at entry level is an organizational way of making the new entrant pay his view. Think of it this way, the existing staff are devoting their time/efforts on you. Taking burden/pain off their heads is a way of repaying the 'guru dakhshina'.

So when you want to resign your job to escape that mechanical/routine work, look for that light at the end of the tunnel before putting in your papers. That interesting work you looked for, may just come your way with some well timed moves/organizational shifts. But remember that with the increasing trend towards automation/process driven tasks, there is more chance of work becoming routine, than of it becoming more creative/involved. So try to find fun in your existing 'routine' work-light the candle instead of cursing the darkness.

Surviving as a veggie in Singapore

Its nearing the 2nd weekend of my internship-and yet I see no convenient solution in sight to the food issue. As I blogged in some of my earlier posts, the veggie food options are few in the area I stay. I can choose between, and there is very little variety/customization as one is used to in India. Still, I must have put on 1-2 kilos since coming here, and the reasons are outlined below

1. They have a 'kaya toast' with ordinary toast but a yummy stuffing which melts in your mouth and tastes heavenly. $2-3 worth of toast will fill your stomach
2. Funnily, a flavoured milk brand(Dutch Lady) costs less than ordinary milk! So I slurp up 0.5-1Ltr a day, all on the pretext of calcium intake
3. On office days, there are many food plazas and restaurants nearby so there is no problem in eating. The real issue is on weekends where the only Indian restaurent nearby does not do home delivery, and the ones in Little India take upto 2 hours. So using ready to eat/cooking at home seem the only options
4. While I felt(in India) that processed food was a rip off, I thank MTR, Kohinoor etc for the abundant options in the frozen segment. Whether it be roti, paratha, naan, dal, bhaji, paneer, pulav, puranpoli etc, virtually everything is available in ready to eat, at a quality comparable to hotels, and at an unsurpassed convenience. Try ordering food at 10pm in the night, and you will get what I mean
5. Breakfast is not an issue with eggs, bread, cornflakes, milk, flavoured milk and fruits all on the table
6. Fruit stalls are few but the selection of fruits is good in them AND at the local Fair Price super market. And thank to South East Asia, there are some exotic fruits like durians etc which I intend to sample over the coming weeks.
7. Luckily, I am not finicky about eating in places where non veg is served/present in proximity else it would not be possible to eat in most places!! For those who like non veg, Singapore has all kinds of exotic cusines and dining out would be a pleasure
8. As in other aspects of Singapore life, processed bakery goods are much cheaper and better than those served in shops/stalls. I had yummy bread buns, cream rolls, cakes etc for a reasonable sum, as well as cold coffee from 7-11 for just $3. So buying off the shelf is both convenient and better.

It is now that I realize that even the IIM-A mess type food would have been welcome here-and that is saying a LOT! Still, it is an experience and I guess I'll come out with intact health/waistline albeit with a lighter wallet  Nothing beats home food though, which I'm looking forward to!

Why change agents should prepare draft documents/discussion papers

In Mar-11, Prof Anil Gupta(of 'Shodh Yatra', Honeybee network etc fame) addressed a group of us IIM-A students, on the possibility of launching a course geared towards discussing, analyzing and impacting Indian/international politics in a non partisan apolitical way. During that discussion, one thing of his struck me as quite important-the suggestion that preparing draft laws/frameworks allows quick action to be taken when the circumstances are ripe. For instance, he said that in the present scenario(Mar-11), with plenty of angst against corruption in Govt dealings, the time was ripe to pass a comprehensive law to put an end to corruption. But because there were no documents ready for discussion, he felt that the time was fast ebbing away. I feel that this applies to the corporate world as well, and explains why consulting firms/investment bankers spend to much time on documents which may be too ahead of their time.

Though oral/email communication have their own place, nothing beats a concrete, well written document which charts the way forward for a transaction/policy/law etc. Writing being something which few people are good at, and fewer having the time/objectivity to write well, the person who can produce a solid good draft can slant it his way; and can also shift the onus on the others to raise any issues-which by inertia they may not. Also, if any issues come out, they can only improve the draft because it would become more robust, and also people will support it once their inputs have been considered. Also, one cannot exactly circulate an email chain/telephone call transcript; and therefore a document beats them hands down in this aspect.

So what is the takeaway? By all means drum up support for your proposed change, but do flesh out a written document giving sufficient time to comment/react. While allowing for reactions(avoiding unpleasant surprises later), others would be grateful to you for getting the documentation out of the way. If you hate it, get some one who likes that work.

Of condoms, booze, chewing gums, healthy food,drugs and refunds-the sucess story of a 'nanny state' Singapore

Whenever governments try to increase their regulatory ambit(as even the best intentioned ones do sometimes purely from power politics basis), there are calls from libertarians to avoid 'nanny states'. With the caveat that Singapore as a small city state, with the same ruling party since independence, is probably unique, I proceed to connect the dots which I've noticed, to infer that this is on balance, good for the citizens. Though media freedom and choice is limited-reflecting in the relatively few local papers-and the Govt does not tolerate dissent, there are few issues with the Govt services offered. Some examples are

1. Not being prudish with sale of booze/condoms(which are sold at the checkout counters) of supermarkets) with only the age restriction(18+) being imposed. This ensures that bootleggers do not gain from black market sales/customers do not shy away from impulse purchase(!) of contraceptives.
2. Chewing gum ban seems absurd but not if you realize the tremendous manual effort involved in cleaning up stains(as the pan stained Mumbai local trains would attest to if they could speak).
3. Recently, the Govt launched an initiative in partnership with hawkers and private sector food companies, to make street food healthier(yet tastier) by using brown rice, healthier oil etc, all without extra cost to the hawkers. 
4. I also noticed that when the private sector bus operators had inadvertently overcharged by 0.3km on 5-6 routes, they had to prominently display that information on ALL bus stops, and provide an automated refund mechanism. In other countries, this would have been dealt with via regulatory fine/future fare adjustments but Singapore upheld the welfare of the affected customers, which technology enabled it to identify.
5. The death penalty for trafficking of drugs, the steep penalties for even 'minor' violations of the law, coupled with CCTV monitoring ensures that Singapore stays crime free. That is certainly a plus. 
6. Some drawbacks are Govt controlled HDB housing supply staying low/restricted thus jacking up realty prices, presumption of guilt in several aspects of the legal system, and also the automatic deportation of work permit holders diagnosed with HIV etc.

Maybe we could compare it with the coastal areas of China, where the population has a Faustian pact with the Govt to accept limited freedom in return for high incomes/amenities/services(this is NOT true of other parts which have lower incomes but comparable amenities). Like how China is finding it difficult to quell unrest post economic growth slowdown, Singapore had given several populist freebies in its own budgets as well. How these work will be critical in determining how Singapore fares vis-a-vis Hong Kong/Shangai in the near future.

How Singapore is like mass retail banking(their way or the highway)

My first experience with Singapore rigidity was on my first day itself-when I went for breakfast. The eggs were not quite boiled right, yet when I requested(even offering an extra charge) for them to be more hardboiled, the response I received was 'no'. This response was typical in other mass market joints where the wait-staff do not offer options/take requests for menu adaptions. Even in supermarkets, fruit stalls, transport systems etc, there is no customization/flexibility. The system is geared towards producing the maximum throughput, rather than on satisfying individual demand. That is exactly how retail banking works(automated high volume non branch transactions) compared to private banking(personalized, branch based).This is a good thing when it comes to service delivery for the common man, because the private banking approach is probably more inefficient or expensive. And one of the reasons I was able to adjust so fast to Singapore is their 'plug and play' infrastructure-social and physical-geared to service ANYone.

Singapore-the ultimate prosumer destination

Marketing theory defines prosumers as those actively involved in creating their own customer experience. Whatever those who coined that term may have intended, that concept has lead to more business functions being transferred to the customer. But I'm digressing. In my week here, I have done more self service than in the entire year back in India.

1. Topped up my prepaid mobile balance online-to avail of that 25%+ bonus offered by M-One
2. Booked an online appointment for my Training Employment Pass(TEP) application
3. Paid 20cents in an unattended box for using the public toilet
4. Swiped my cards twice a day for using the bus/train
5. Used the gothere.sg website for finding out directions-instead of asking an helpline
6. Bagged my own fruits/vegetables without assistance from supermarket staff, because the billing is on a per piece/per prepacked bag. 

I'm sure this list will grow in the next 8 weeks. 

The tale of three Singapores-upmarket, middle and down rung

This classification can be done for any country. But for a small island state like Singapore, this is easier to do and validate. From my observations/discussions with people, I could do the following demographic classification.

1. Upmarket:- Typically senior banking/finance/shipping professionals/businessmen/inherited wealth with 7 figure incomes. They can stay in privately build mansions, drive to work, shop till they drop in the upmarket Orchard Place(with A-Z luxury brands), eat in the amazingly expensive outlets on Clarke Quay, import domestic help from adjoining Asian countries etc. Basically, the equivalent of some South Bombay/BKC residents in India
2. Middle: Above professionals with incomes say above $70000-$140000(very approx range I may be mistaken in the exact figures). They can stay in a reasonable sized condo/HDB apartment, commute to office in bus/MRT, afford the essentials and that occasional shopping/partying binge, and that periodic domestic service. Lifestyle is not the tops but pretty good. Entry level expats would fit here
3. Lower rung: Sanitation, Supermarket and other workers. Their incomes may not cross $30000-50000, making it difficult to meet both ends. 

 Interestingly, I have seen Indians at all 3 levels, but more concentrated in the bottom 2 rungs-perhaps a reason why some Singaporeans may perceive Indians as their domestic workers. Apparently(as history informs), the original Indian settlers in Singapore were low skilled labour whose future generations became professionals. The older Singaporean settlers may not connect this though.

One challenge is 'cutting your clothes as per your cloth'. As  some Western expats told me, Singapore is more expensive than Amsterdam/London, and they find even $110000+ incomes hard to sustain on. Of course, Indian expats will have the reverse problem-ensuring that the new found wealth does not go to their head.

Will I tire of the Disneyland/'Matrix' feel of Singapore?

Let me clarify that this post may have some ethnocentrism(me comparing everything to India) but I have tried to keep it as objective as possible. With that disclaimer, let me proceed. While people go to Disneyland for fun, they know the experience they will get. There are no surprises, customizations, adaptions etc. Innovations may happen but they are mostly to improve operational efficiency rather than customer satisfaction. And those who watched the 'Matrix' would agree that newcomers to Singapore may feel that they are in a virtual world.

It is said that girls tire of 'good guys'. Something like that may hold here. Singapore is SO efficient that at times, it does become dull on working days. People from other Asian countries may be glad to be 'far from the maddening crowd' but may miss that crowd, warmth, noise, chatter, traffic jams, uncertainty  and companionship feeling you get over there. Here, it is quite easy to get lonely. And the impersonal service in stores(where a chime sounds every time you leave like in 7-11 supermarkets) does get on your nerves at times.

Of course, there are party options too. Clarke Quay and other areas are there where people can unwind after a day's/week's hard work. But on a routine basis, that would be difficult. And it is the routine basis that really counts. Feeling lonely on Monday-Friday does not get wiped out by partying away the Sat-Sun weekend.Of course, from a lifestyle point of view, the public service delivery here is probably among the best in the world. While private 'services' may tip the cost side of the cost-value equation, they are pretty OK for those who can afford it. So all things said and done, either stay in a planned city like Lavasa or shift to Singapore-that would be my recipe. Lets see

Travel tips for Indians(specially Mumbaikers) heading to Singapore

If I had known these points before arrival in Singapore, I would have saved a lot of time and mental agony. I'm posting this in the hope that anyone Googling for similar tips can start off with some info. This post will be updated till I'm in Singapore so keep watching this space weekly.

1. It is cheaper to convert your rupees here(at the airport) so carry minimal SGD with you and instead convert either at the airport or at the famous Mustafa Centre in Little India. Do not try the other local shops, they rip off
2. Expect to pay roughly 1.5x-2x(in rupee terms) for supermarket food purchases or for eating Indian food in Little India/food plazas. Jack that to 3x-4x in restaurants.
3. Remember to obey the laws strictly. As I mentioned in another post, people here strictly follow the system and ignorance of law is no excuse. That includes laws against chewing gum, jay walking, littering, eating on MRT/bus, smoking etc. When in doubt, use your good common sense or ask. 
4. Keep your questions short and simple. While English is widely spoken in Singapore, accent/other issues make it difficult to communicate. Beware of understanding issues
5. Do NOT criticize the city in public using English(Hindi/Tamil etc may be safe). Residents are(rightly so) proud of their city. 
6. Do not jostle people in Q/run into trains/buses/speak loudly. Basically, do not encroach upon other's personal space. That is not liked here
7. While looking for a property to rent, remember that even if a property is far from your workplace but a good point-point bus can cover it, then it is fine. Most points on the island can be reached within a 0.5hr travel. Ask a local contact to travel once and review. 
8. While dealing with agents/landlords, remember that they prefer to stick to their standard terms on rent payments, contracts, duration etc. So try asking concessions in other areas rather than procedural aspects. 
9. Unlike our dysfunctional(in terms of comfort) public transport, their public transport is both cheap and air-conditioned.And due to the high cost of(and restrictions on) private vehicle ownership, there is no stigma attached to using public transport.
10. For getting to places by public transport(bus+train), this site(http://gothere.sg/maps) is widely used and amazingly effective. Combine that with the MRT/bus route map, and even novices can find out easily how to get to their workplace etc.
11. Do not expect any customization/flexibility unless you are willing to pay a bomb. The wait staff in restaurants will not make that paratha extra soft/hard boil your egg, unless you are willing to pay a bomb, and sometimes not even then.
12. Services cost a bomb so try doing your laundry, ironing etc yourself(till the cost benefit equation breaks down). It is generally faster, and may be the only option on weekends.
13. Cab is generally not necessary and may in fact take more time due to the dedicated bus lanes here. Though they do not cheat, getting a cab can be very difficult at times while both trains and buses are pretty frequent
14. People generally keep to themselves(contrast the relative silence on bus/train compared to India) and are unlikely to strike up conversations with strangers like we do back home. So respect that and do not push in case your fellow passenger does not reciprocate
    

Singapore-the ultimate expert in replacing people by automation

Its been just a week here, and already I'm awed, home sick and enthusiastic in equal proportions. Being from India where we routinely 'first break all the rules' whether relating to traffic, queues, tax etc; the Singapore automation system(perhaps routine for residents) was something which caught my eye. Consider these examples which give an insight into the extent by which the system eliminates manual labour

1. In the underground train system(MRT), Card operated entry and exit gates(with carefully designed barriers) ensure fare collection without the need to issue tickets. For newbies/tourists, there are of course the ticket counters but they are not used often
2. In the bus systems, the driver ensures that passengers swipe card at entry. If they do not do so at exit, the maximum fare is deducted after some time. So no conductor is needed. 
3. Instead of having liftmen, offices have this system where when the access card is swiped, the elevator is automatically assigned to the person. This ensures that liftmen do not need to handle the crowding in lifts and other issues
4. The CCTV system ensures that people think twice before committing crimes. That is why stores(barring a few exceptions) are so confident that they allow people to bring in their hand baggage(which is not allowed in India/other Asian countries)
5. By encouraging online/card based transactions-like giving 25% bonus on mobile recharge online or through ATMs, charging 40cents extra per paper ticket on buses, promoting/mandating e-governance, the system is geared towards online/card based transactions
6. The number of vending machines/kiosks are a lot, specially in offices. 
7. IPO application can be done via ATMs-by the way a superb method of due diligence because the fact that someone has a bank account means that the investor background check is a piece of cake.
8. The good geographic mapping allows easy reporting of system malfunctions-especially of traffic signals, public amenities, bus shelters etc.

But to avoid missing the forest for the trees, I should point out that all this is possible because people here are inherently trained to follow the system and the rules. Any system however well designed would breakdown if people start gaming the system. Because people are civil and law abiding(I did not hear a single 'honk' yet!), 
On the flip side though, system breakdown may result in total disruption if people cannot innovate on the spot. Thankfully,the system seems both robust and well designed for contingencies.

What the 'pee analogy' to social media is a matter of concern

I recently came across this amusing graphic depicting social media(original link http://tinyurl.com/469sf4q),

If this sardonic comparison was just an analogy, it would be fine but it does reflect how social media allows the most trivial of expressions to be aired for the public. One might argue that what is trivial is 'subjective', also that we are social animals to whom even such messages are routine. But the problem is that this results in information overload. People sign on to Facebook/XYZ networking platform for a purpose, and when their inboxes get filled with spam,
they may just abandon the platform. That is what happened to Orkut, and if the other sites do not get their act up, then they may face a similar exodus. But what bothers me more is the pain Google is taking. Google's noble mission of classifying the world's information is expanding by leaps and bounds, partly due to social media information overload. If this is bogged down by non value adding content, then the mission will be that much harder to achieve. A laissez-fairez argument is that Google goes by popularity and not by subjective content assessment, so if the masses want XYZ content(even if the content is Charlie Sheen type tweets), so be it. Maybe human editing based homepages like Yahoo may find their own nice in the effort to cut the clutter.

The CA advantage over other professions at workplace

On my first day of training at Haribhakti & Co, the Partner overseeing me, while discussing the value of the CA curriculum, mentioned an interesting aspect. He said that even the junior most articled trainee is treated with respect and caution  by the senior client staff. Requests are complied with promptly. This point was NOT made for recommending power politics but to emphasize that when all the company records are open to a CA firm, there is very little to hide after that. Even consultants need to seek data specifically from client and generally do not get an open ID access like the CA firm does.

A trained person can diagnose issues with the 'professional view' and then use it to cross sell services across the board. A CA knows both sides-how data is gathered/audited..and how it is used. That makes it easier to know what to ask and whom to ask. In information intensive professions like internal auditing, management accounting and even operations consulting, such an edge can often prove vital

WHOSE costs and WHOSE benefits_cost benefit analysis in IFRS

Whether it be Microeconomics, Financial Management or Cost Management, the uniform message drilled into the student is 'Take the decision if relevant benefits> relevant costs'. It is phrased as per the subject

• In Economics, we want MR>=MC
• In Financial management, we want NPV>=0
• And in cost management, the tool used is Contribution

Of course, the caveat explained in all subjects is 'qualitative factors'. This would typically include political scenario(does your boss support it/ effect on your bonus etc). The issue here is the classical economic problem if externalities as social costs and benefits are not captured in the conventional analysis from the firm's view point. This is solved partly by taxes, permits, licenses which impose some costs to solve these issues.

The IFRS framework contains a cost benefit analysis for applying IFRS. It states that if the benefits to users does not exceed the cost to preparers, the entity need not use IFRS. The issue here is that the preparer will tend to understate the user's benefits. That is why the independent auditor generally takes the last call on 'such materiality issues'.

Not in my backyard

This phrase means usually that a person who supports a cause purportedly in public interest backs out when it affects him. This is also hypocracy. We have many examples to support the same.


Take the issue of stray dogs. This is a suburban problem but which is rare in the City. Hence we have a lot of South Mumbai animal lovers and NGO's campaigning and even filing writ petitions in the High Court(s) to protect animal rights. From an ethical stance(that all life is entitled to exist/ slippery slope arguement that will we stop at dogs or go to humans etc), they are probably correct. What fails me however, is that in SoBo(South Mumbai), there are virtually no stray dogs.Once people listen to the melody of the barks and fights, they may soon change their minds.

Another is patriotic causes like fighting corruption, standing up for the weak or joining the army/low paying Civil Service jobs. We pay lipservice but how many of us really would like a hazardous low paying army job even for prestige?

I can go on and on but the point is clear. Unless we think in the larger good atleast sometimes, nothing will happen.

THEN(Is it so)-NOW(What is the probability it is so)

The above line; in the preface to "A First Course in probability"-6th edn by Sheldon Ross; got me thinking. When even light has dual nature(particle/wave), where we are not certain about the exact location of sub atomic particles(Heinsenburg's uncertainity principle), then how can we be certain about much less exact things?

Schools, Colleges and some extent work teach us that there is only 1 right thing. But where even "established theories" in any area(economics, finance, law, astronomy) get refuted, should we be so blaise about insisting on only 1 thing?

This no doubt helps standardization but does it really serve the objective? Instead of having 1 number, we should take a probability weighted number for that or better still, present the distribution instead of the number.

Back after a 3 yr hiatus

It feels good to be writing again on virtually anything under the sun. But that is what "Musings are for". I resolve to:-
(i)Post atleast once a week
(ii)Revise posts in case of new data/errors

Are we responsible for the spread of beggars?

You can't miss them. Whether in rags, or ochre robes outside temples, or with a bowl, or with a car cleaning cloth at traffic signals, they are omnipresent. We usually ignore them- or at best drop a 50p/ 1 Re coin. Do we ever think of what happens after that?

Madhur Bhandarkar's movie " Traffic Signal" has potrayed the nexus between the underworld and the beggar mafia. These people even go to the extent of maiming children to graduate them into the begging industry. Besides, we have able bodied beggars who still prefer this work to sweating out a living.

Some of you may feel- so what- that's only a buck. Poor fellow can hardly live. What we forget is some of these poor fellows have bulging bank balances and posh houses, as per a Mumbai Mirror expose.

My views are that giving books to kids or food to beggars is OK, but not cash in any form. That may go to the mafia, or even worse- to buy drugs.

So, you feel India's No.1 job is of an IIT/IIM grad? Read this Orkut expose!!

Salary & Govt. Concessions for a Member of Parliament (MP)

Monthly Salary : 12,000

Expense for Constitution per month : 10,000

Office expenditure per month : 14,000

Traveling concession (Rs. 8 per km) : 48,000 ( eg.For a visit from kerala to Delhi & return: 6000 km)

Daily DA TA during parliament meets : 500

Charge for 1 class (A/C) in train : Free (For any number of times) (All over India)

Charge for Business Class in flights : Free for 40 trips / year (With wife or P.A.)

Rent for MP hostel at Delhi : Free

Electricity costs at home : Free up to 50,000 units

Local phone call charge : Free up to 1,70,000 calls.

TOTAL expense for a MP per year : 32,00,000

TOTAL expense for 5 years : 1,60,00,000

For 534 MPs, the expense for 5 years : 8,54,40,00,000 (nearly 855 cores)

And they are elected by THE PEOPLE OF INDIA, by the largest democratic . process in the world, not intruded into the parliament on their own or by any qualification. This is how all our tax money is been swallowed and price hike on our regular commodities.......

What people say- and what they really mean.

Phrase/ word Meaning Example
Consultant- Agent -Real estate consultant
unemployed- Freelance consultant
Backward- In namsake- Backward caste
Public interest -My interest- File notings in RTI not disclosed due to public interest
national benefit- Helps votebank- Slum rehabilitation helps nation
Social Justice -Injustice otherwise- Reservations are for social justice
Public servant -who takes tips -Ministers are public servants
Restructuring -Sack people -Corporate restructuring
Rationalisation- Reduce -Rationalisation of taxes. staff
Service charges- Bribes/ Loot- Service charges in hotel bills
Revision -Hike- Revision of tariffs
People -Me -Walmart's entry/ cheap imports affects people Premium Costly Premium quality
Empowerment -for the camera- Companies want to empower their employees
detention: arrest
adult entertainment: porn
mature: old
senior: old
correction: Abroad, this means the jails Dept!
dental cream: Means paste
Quiz: In foreign text books, means question bank
assessment: Exam

Certain loaded words used often

Open any national daily( apart from the TOI- more on that later) and you invariably see coverage of certain socio-economic- political issues like inflation. poverty, SEZ, reservations, criminalisation of politics, black money etc- this list could fill an whole blog. While the coverage itself is mostly unbiased, what is a burning concern is WORDS. Yes, you read that right.

We read words like "worker", " backward" " small" " justice" " freedom" " poor" all twisted out of context. Who would imagine for example that for BPL purposes, poverty is about Rs 25000/ year, but for creamy layer of OBC reservation- it is Rs 2,50,000/ year.

Similarly, people who have never done a day's honest labour in their lives- like social workers and politicians- claim to represent the working class. My question is- Who is a worker? A daily wage person or an IIT/IIM salaried employee?

Similarly, " social justice" is often used to justify reservations. This misses out the point that not only those who were oppressed by caste system ( like SC's) get reservations, but also those who did not suffer that stigma do so- like ST's/ OBC's etc.

Also, to justify public display of affection/ porn like movies, people say that freedom is must. Yes, "freedom" is OK, as long as it does not affect freedom of other people to have uncontaminated minds.

As far as " small goes'" , the local kiranawala opposes Wal- Mart as he says that they will gobble him up. But so what? These small shop keepers evade income tax, and mostly do not pass on the service tax/ VAT they collect from customers. That is unjust enrichment, which perpetuates the poor-rich divide. Also, the income of these "small" vendors is inflation prone- unlike salaried income.

So, to allow atleast an informed debate on these issues- let us clarify the meaning of words used in a certain context. It would throw up some surprises.

It is a dog's life

Our FM's recent budget gives import subsidy on dog food and has sparked a lot of good natured(and some bad natured) ribaldy that the FM cared more for dogs/cats than for the common man. One of our better known MP's has been quoted to say that 'yeh kutta billi ka budget hai'. The Mumbai HC recently advised societies to adopt a stray dog each- for security reasons!. With this much of news prominence, though this country is not going to the dogs(or cats!) as yet, a dog is still quite lucky.

If it is born to a pet, it is gifted away or sold to happy recipent families. If it is born on the streets, then also it lives. Some members of our nation love to feed our stray canine friends daily- even if there are more pressing matters elsewhere. Many South Mumbai residents consider it a badge of pride to be an 'animal lover', and indulge in armchair criticizm of the dog control measures. They mind paying parking, suffering load shedding and consider themselves above the rest of us, but have no hesitation to condemn their suburban Mumbaikars to a dog's life of barking noise, bite, droppings and fear. Dogs nowadays get moved down less often then people sleeping on the pavements. So, Man's best friend does have it good nowadays.

Unity is strength- but for whom?

This week will see the Bank officers and employees strike as usual, to avail of the long extended weekends/ successive holidays. The Govt will as usual condone it and sanction them bonuses and hike their DA, while the customer watches helplessly.

The power behind these strikes is the union(s) which every now and then need to flex their muscles. After all, their importance is realised then. The unions which were set up for a noble cause of 'promoting worker's unity and cordial employer-employee relationships' have only partly achieved their goal. They have ensured pay-but not performance. Bonus-but not dedication.
Gandhi and other proponents of the unions would surely be turning in their grave if they saw the present state of affairs- where people like Datta Samant use the workers as a cats paw tp achieve their political ends.

Today's DNA has an interesting article on unionisation in Kerala- where even debt collectors and private sector bank employees- have formed their own unions. Closer home, we have the Central Railway SC/ST employeed union!. I can understand organisation based unions but caste based unions!. Anyway, this is why the industries choose to produce/ manufacture in Baddi and Vapi where contract labour relieves their employee headache. Here of course, the loser is the contact labourer who gets underpaid- but then, why would the Mumbai unions care?