Does a Mid-career Full-time 1-year MBA have a Negative Financial RoI?

Everyone experiences mid-career blues in her career. And one way people (who didn't enter the corporate world with an MBA degree) think they overcome these blues is to get an MBA degree.

Mid-career MBA Dilemma

Since we are talking about a business management course here it is worth assessing whether it makes business sense to get a business degree. What is the likely RoI (return on investment) of an MBA? Does a mid-career full-time 1-year MBA have a negative financial RoI?

Case of Mrs. X - Should She Do an MBA or Not

Let's consider a certain Mrs. X entered the corporate world when she was 25 year old and plans to retire when she turns 55 (hence the career would span for 30 years). After working for 10 years Mrs. X decides to do a 1-year full-time MBA. The big question would be: Does a mid-career full-time 1-year MBA have a negative financial RoI?

Let's assume a few things:

• Mrs. X will work for 20 years post-MBA
• The cost of MBA is Rs. 2600000 (26 lacs)
• It is also assumed that Mrs. X has this readily available in cash and will not be needing an education loan. If an education loan in considered the financial RoI is negatively impacted
• If the MBA Cost is kept in a bank FD (Fixed Deposit) it can earn post-tax returns at 6% interest rate compounded annually
• It is also assumed that this money lies in the FD throughout and earns interest on compounded basis year after year
• The current salary of Mrs. X is Rs. 2400000 (24 lacs)
• Mrs. X expects to earn 8% salary hike every year
• It is also assumed the %hike will remain same before and after MBA. The reason is that an MBA can't change the inherent competencies and performance level of an individual. An MBA can help get a one-time major salary hike but the future hikes will depend on the person (and an MBA program can't change a person at a fundamental level).
•  Mrs. X expects to get a one time 50% hike

Given the above scenario what is the likely answer to the question: Does a mid-career full-time 1-year MBA have a negative financial RoI? One might think it can't be a "yes" but an insightful analysis reveals that it is actually yes. See the table below for the details of calculations.

And here's the chart showing the trend of Money W/O MBA, Money W/ MBA and Net INCOME. It clearly shows the returns over a 20 year period is always negative and in fact, keeps getting worse year on year.

So does a mid-career full-time 1-year MBA have a negative financial RoI? The answer is yes. The financial RoI of doing a mid-career full-time 1 year MBA is actually negative. Thus going by purely financial RoI perspective Mrs. X should not do an MBA.

Reasons Other than RoI for Doing or Not Doing an MBA

Though Mrs. X realizes that the financial RoI of doing a mid-career full-time 1 year MBA is actually negative there are still many other reasons she can go ahead with the MBA. Here are some reasons why MBA may have RoI in other aspects (non-financial in nature):

• Get break into an area one always wanted to work but couldn't. An MBA degree can open certain doors that were closed before
• Feel good about oneself by virtue of the esteem value generated in flaunting the MBA degree. An MBA degree is a great label to have on one's resume, any day

In the process of the benefits that might accrue to one certain things might get lost. Here are some of those:

• Technical or functional competency before MBA may count for little or nothing. Also the grass always looks greener on the other side. One might get an MBA and realize that she was comfortable and enjoyed a role with more technical content as compared to a role with more managerial content
• One would always have the disadvantage over someone who entered the corporate world with an MBA degree. An MBA degree with 10 years experience after that is not equivalent to an MBA degree with 10 years experience before that

Fake Leadership versus Genuine Leadership

Organizations need leaders, genuine leaders and not the fake ones, to attract and retain the right talent. This becomes all the more important in organizations that are started by a few individuals. Such organizations need to hire senior professionals to help grow the organization. These professionals hired from outside can easily determine whether the existing leadership is fake or genuine. Fake leadership as against genuine leadership is evident when the leadership team doesn't walk the talk.
 
Signs of Fake Leadership

Here are some usual signs of fake leadership:

• The top man in the organization, MD or CEO tells the senior professional hired from outside that an initiative must be completed by a certain date no matter what, despite repeating umpteen times that no short-cuts should be taken. The rationale is that challenges are part of any initiative or project and must be managed. And the message is sent across indirectly through an artificially created reporting structure.
• The MD or CEO doesn't allow senior professionals hired from outside to grow in the real sense. These professionals are made to report into the MD or CEO through an artificially created reporting structure.
• The MD or CEO takes arbitrary decision without taking the senior professional hired from outside into confidence. The attempt is to show that the artificially created reporting structure is adding value when in reality that may not be the case at all. This in some way is a justification to legitimize the artificially created reporting structure
• The MD or CEO has pre-conceived and  strong opinions and is not willing to consider differing thoughts. In some ways she would take the decisions on her own and then fake discussions with the senior professional hired from outside to give an air of genuineness to the whole affair.
• The MD or CEO talks about empowerment but doesn't allow true empowerment to the senior professional hired from outside. These professionals don't share the accountability with the artificially created reporting structure if things go wrong but are made to share the successes with the artificially created reporting structure if things go right.
• The MD or CEO talks big about motivation and recognitions but fails to duly appreciate and recognize any big achievement of of senior professionals hired from outside. In fact the success of senior professionals hired from outside is completely diluted by giving a "run of the mill" award to something significant and special. The fake leadership becomes all the more evident when this is done through the artificially created reporting structure.

Handling Fake Leadership for Senior Professionals

The senior professionals hired from outside should not remain long with an organization if they realize the leadership is not genuine but fake and that their growth is artificially contained by the skewed organization structure. Hence the "Importance of Appropriate Reporting Structure". This is generally one major reason "Why New Hires May Quit Early On!"

Is Gurgaon Dwarka Expressway a Bubble Ready to Burst?

After reading about Gurgaon Dwarka Expressway a lot in the newspapers, I decided to explore the Gurgaon Dwarka Expressway area to find out the answers to certain questions in my mind:

• Does it make sense to buy a house in Gurgaon Dwarka Expressway area?
• Is it worth putting one's money in buying a house in Gurgaon Dwarka Expressway area ?
• Are many people really buying houses in the Gurgaon Dwarka Expressway area?

So is Gurgaon Dwarka Expressway a bubble ready to burst? The answer at this point seems to be a big yes. Just read on.

Gurgaon Dwarka Expressway Area

For getting answers to the above questions I spent the last few weeks driving through the new sectors on the Gurgaon side of the Gurgaon Dwarka Expressway area to understand its layout. The whole of Gurgaon Dwarka Expressway area can be divided into five parts:

1. Area close to Delhi (Sector 109, Sector 112) - these are being sold with the USP of close proximity to IGI Airport and Dwarka
2. Area opposite to Palam Vihar on the other side of the Delhi-Rewari railway line (Sector 102, Sector 103) - these are located close to Rajendra Park
3. Area opposite to Sector 9 and 10 (Sector 37C, Sector 37D) - these are close to Basai  area
4. Sectors on the right side of NH8 when going to Jaipur from the Kherki Daula Toll Plaza (Sector 84, Sector 89, Sector 90) - these are running close to the road going towards Pataudi
5. Sectors on the left side of NH8 when going to Jaipur from the Kherki Daula Toll Plaza (Sector 79) - these are towards Faridabad side in close vicinity of Aravalli Hills

Does it Make Sense to Buy a House in Gurgaon Dwarka Expressway Area?

No, not at all given the rates which are currently being quoted. It appears there are no affordable projects in this area. All projects are claiming to be luxurious and the current BSP rates start from Rs 5000/- to 5500/-. For the high-end projects the target market consists of high net worth individuals for whom a few crores here and there doesn't matter hence the contents of this post may not be fully applicable to this segment.

 It would be fair to say that a normal end-user would want to buy at least a 2 BHK. For a 2 BHK of 1500 sqft the basic cost starts from 75 lacs and after considering the additional charges (EDC, IDC, Parking, Club, PLC, etc.) and stamp duty the cost will easily touch 90 Lacs to 1 crore.

Surprisingly there are many builders who have come in to "make hay while the sun shines". I came to know about an inverter manufacturer planning to come up with a housing project. There is a possibility that many of these get some bookings done and sell the project lock, stock and barrel to another builder and there is no guarantee the other builder won't do the same. For end user this may mean inordinate delays.

Is it Worth Putting One's Money in Buying a House in Gurgaon Dwarka Expressway Area?

No, not at all unless you are an end-user who bought it when the BSP was Rs. 2000/- to 3500/- or purely an investor who has put your money when the rates were even lesser and has enough cash to stay in case resale takes its own sweet time. Or handle the worse possibility - to buy and keep the house in case no resale occurs. With this area this is a very real possibility. We know that when demand goes up prices go up but when prices go up many people who could afford an item earlier drop out leading to demand flattening which again brings prices down.

For the salaried class who pay taxes to the government honestly at source itself (through TDS) unless one is earning more than 25 lacs in a year buying a house in the Gurgaon Dwarka Expressway area will be next to impossible. For details see the section "Some thoughts for End Users of Housing Projects".

Are Many People Really Buying Houses in the Gurgaon Dwarka Expressway Area

No, not at all despite the claims made by the builders and even newspapers and many news channels. In the Gurgaon Dwarka Expressway Area mostly investors have put in their money expecting to make a kill when rates go up. It is a fact that prices can't go up indefinitely (other than to account for inflation factor).

Imagine an investor with 1 crore who invests in four houses at a rate of X0. The investor would typically follow the strategy as below:

• Sell the first house when the rate is X1 (>X0) - profit is on the differential X1 - X0
• Sell the second house when the rate is X2 (>X1) - profit is on the differential X2 - X0
• Sell the third house when the rate is X3 (>X2) - profit is on the differential X3 - X0
• Sell the fourth house when the rate is X4 (>X3) - profit is on the differential X4 - X0

The total profit is expected to be X1 + X2 + X3 + X4 - 4X0. This calculation makes a major assumption that the investor is able to make a resale. Also consider the number of people who can afford the house as N0, N1, N2, N3 and N4 when the rates are X0, X1, X2, X3, X4 and X5 respectively.

It is obvious to note that: N4 < N3 < N2 < N1 < N0. Now think what if N1, N2, N3 and N4 are close to zero (meaning there is demand but no affordability in the market - people want homes but can't afford if X0 is very high).

Some thoughts for End Users of Housing Projects

Imagine an end-user who wants to buy a house. It can be assumed that an end-user will come in only at the rate of X1 or higher. Supposing the end-user has 20 lacs in savings so to buy a 1 crore house she will need a loan of  80 lacs under CLP (Contruction Linked Plan). In any case banks don't fund more than 80% of the total cost. For 80 lacs loan at a rate of interest of 11% the EMI for 20 years comes to Rs 82575/-.

Now assuming banks are ready to allow EMI upto 50% of her take home salary. This means the end-user should be earning Rs. 165150/- every month which translates to an annual take home salary of around 20 lacs or annual total salary of 25 lacs. What percentage of end-users come in this income bracket? What about the uncertainty due to weak market conditions? What if after taking loan an end-user suffers a job loss?

So if you are an end-user stay away unless you are prepared for the long haul - spending 1 crore for a 2BHK. The other risk is if the investor can't make a resale the builder won't get the money to carry on with the construction. And even if the builder could, it won't because there is demand but no affordability in the market so no buying would occur until prices crash and that makes the project commercially nonviable.

End-users should also not take the risk of becoming an investor to make a quick kill as this can backfire. I suppose investors will be willing to have their money forfeited by the builder than pay more if the resale doesn't occur by a certain time. An end-user turned investor can't afford to have the money forfeited as their money will be hard-earned unlike the case with investors (who generally have lots of unaccounted money).

Learning from the US Sub-prime Crisis

The US sub-prime crisis had its roots in a situation like the growing bubble in the the Gurgaon Dwarka Expressway area. In the case of the US sub-prime crisis housing loans were provided to those who couldn't really afford them.

Whereas in this case other than projects that were sold when the BSP was Rs. 2000/- to 3500/- most of the projects will stall mid-way  due to defaults by investors (who will stop paying) resulting from lack of end-users (who won't be able to afford the houses). This will naturally lead to inventory pile-up leading to a price crash.

Those who don't want houses, have them (Investors - for them house is a means to make money) and those who want, can't afford them (End-users - for them house is a means to satisfy the basic need of shelter). We all know no one is able to buy something is equivalent to no one wants to buy it and in that case prices do crash.

So is Gurgaon Dwarka Expressway a bubble ready to burst? The answer at this point seems to be a big yes. This is highly unfortunate since many needy end-users finally get adversely impacted.

Online Shopping Experiences

I purchased few items over the Internet in the last one year - cellphone, corded telephone, printer cartridges, baby products, shirt, shoes and accessories. Here are some observations based on my experiences:

• Avoid the not so known, unbranded and unreliable websites
• One of the not so known website I purchased a color cartridge from shipped me a piece where the warranty period was about to get over.
• Another unbranded website I purchased some baby products shipped me an old milk bottle for infants. Also another item was not as per what I thought it would be. The description on the website was not to mark.
• Another unreliable website I purchased shirt, shoes and accessories from shipped me a shoe which was not of the quality claimed by the website.
• Always go with branded websites
• One of the site I purchased a cellphone and corded telephone each was a good experience. The corded telephone size was slightly lesser what I had thought but rest everything was fine.
• Another site I purchased a black cartridge from shipped a fresh piece in perfect condition.

Based on my good experience websites I recommend for online shopping:

• Flipkart
• Ebay

And based on my not so good experience websites I recommend to avoid:

• Nextworld
• Yebhi
• Hushbabies

These are based on my experiences. However, as they say everyone has different experiences and perspectives.

Why is Driving on Indian Roads Risky?

I think one of the hallmarks of good driving is safe driving. Driving on Indian roads, however, is an experience which can be scary. And as one would realize it in no time, it's not safe at all.

Why is driving on Indian roads risky? Based on my experience here are some observations on this:

• Diversity of vehicles on the roads -both slow and fast moving vehicles share the road space leading to chaotic conditions
• Scant respect of lane discipline - drivers change from one to another lane like a "random variable" putting the other road users at grave risk
• Lack of awareness of traffic rules - drivers don't know many traffic rules
• Disregard of traffic rules - drivers don't show any consideration for traffic rules
• Urge to stay ahead of others - drivers carry their egos on the road.

Cash Comes from Competency, Connection and Chance

One of the purpose in life is to become successful. In this materialistic world success is generally seen as equivalent to how much cash comes one's way (this is probably true except for certain professions and certain personalities).

Cash and Competency

Competency is the ability of a person to perform the activities demanded by a profession in such a manner that the person is seen as the "go to guy". Examples include famous cricketers who could do wonders with the bat or the ball or both.

Competency allows a person to be able to leverage an opportunity if it comes the person's way. Without competency a person can get an opportunity but fail to make use of it to become successful.

Cash and Connection

Connection is the network of people a person has been able to cultivate who can in some manner influence the opportunities that come a person's way. Example includes a promising cricketer getting noticed by the selection committee due to a string of stellar performances.

Connection allows a person to be considered by those who matter to notice and provide opportunities to the person. Without connection a person with competency also may not get the opportunity.

Cash and Chance

Chance is the blessing of an invisible hand that makes a person convert an opportunity to one's advantage. This is where the rubber meets the road and cash comes flowing down to the person's pockets. Example includes a cricketer playing a match where other players under-perform.

Chance allows a person to capitalize an opportunity that comes the person's way. Without chance a person with competency and connection may fail to leverage the opportunity.

Cash Comes from Competency, Connection and Chance

The role of competency, connection and chance is pivotal to success in the form of loads of cash. It can be said that cash comes from competency, connection and chance.

The timing of connection and chance is important in ensuring cash does indeed come. For example if someone takes the video of a promising cricketer which is watched by the selection committee after twenty years it will certainly do no good for the person.

Giving Good and Constructive Feedback

One of the ways to improve any system or process is to get it reviewed by experts and other relevant folks.

It is important to provide “quality” feedback should one be assigned the responsibility of performing the review.

Giving good and constructive feedback can go a long way in helping improve the system or process.

In fact giving feedback is as much an art as it is a science.

How to give good and constructive feedback?

Here are some points to consider which might be helpful:

Know the Background and Context of the Area being Reviewed

Many a time reviewers don’t know or understand the background and context.

This might be due to genuine lack of knowledge or the reviewer carrying prejudiced notions.

It is helpful for reviewers to spend some time to acquire broad understanding of the concerned area(s).

Do Your Homework before the Review Discussion

Many a time reviewers do the review during the review meeting.

This not only slows down the pace of the review meeting but also shows the lack of interest by the reviewer.

It is helpful for reviewers to spend some time prior to the discussion to run through the items sent for review and identify the opportunities for improvement.

Get Clarifications before the Review Discussion and, if Appropriate, Share Observations in Advance

In case certain clarifications are required they can be sought prior to the review discussion.

This can not only help save time during the review but also ensure that another round of discussion is not needed. 

It is also a good practice, if appropriate, to share the review observations in advance.

Maintain Positive Outlook and Communicate Observations in a Constructive Way

How we say something is equally important as what we say.

Being positive and constructive in sharing the feedback is helpful to ensure other reviewer(s) and also the author(s) don’t get defensive.

The review is not to be seen as a forum to score a point but to contribute in improving the system or process under consideration.

Don’t Shy Away from being the Lone Voice of Dissent

At times one lone voice of dissent can get drowned if all others agree on something. 

A good reviewer would facilitate the discussion towards a logical conclusion and consent with others.

At the same time he will also insist that the dissents are discussed at some length and duly recorded.

Don’t Maintain Hard Positions

Reviewers should be open to others viewpoints and thoughts and ready to give up their position if that helps the discussion to progress towards a more meaningful conclusion.

Positions don’t matter, the end outcome does.

Killing Our Ego

Killing our ego is the secret to happiness.

And one of the best ways to achieve the state of "killed ego" is to follow the famous Sanskrit Shloka on self-less service.

This is explained in further detail in the blog post "Karmanya Vadhikaraste Maa Phaleshu Kadacha".

Unfortunately our own ego comes in the way of killing the ego.

Questions like "why me?" or "why not me?" tend to arise in our minds very often.

These questions give rise to the feeling that:

• I am somehow different
• I am better than others
• I am special and unique
• I am here to do something great

We tend to forget that in the end the entire life of a person is nothing.

It can, at best, become a chapter or a footonote in some pages of history books or a dedicated page or some pages on Wikipedia.

This is summed up succintly in the blog post Reduced to One Page of Wikipedia.

The efforts and achievement of a person is meant to become that one page.

The moment one kills the ego life becomes simple.

Then thoughts like "good, it’s me" or "great, it’s not me" assume significance.

Achieving or becoming something in life becomes immaterial.

Hill Stations in India

A hill station is supposed to be a town or a city amidst the hills that is frequented by tourists who want to be close to the nature and enjoy a salubrious climate away from the hustle and bustle of maddening city crowds and rush.

List of Some Hill Stations in India

I suppose it is an interesting exercise to try to list down the various hill stations in India. So here goes the list of some hill stations in India:

• Kullu-Manali (Himanchal Pradesh)
• Shimla (Himanchal Pradesh)
• Shillong (Meghalaya)
• Mussoorrie (Uttarakhand)
• Nainital (Uttarakhand)
• Ranikhet (Uttarakhand)
• Agumbe (Karnataka)
• Munnar (Kerala)
• Khandala (Maharashtra)
• Lonavala (Maharashtra) 
• Mahabaleshwar (Maharashtra) 
• Mount Abu (Rajasthan)
• Darjeeling (West Bengal)

Preserving the Hill Stations

On a sad note it must be said that in the recent years due to increase in the population and general improvement in the income levels of the populace the later part (away from the hustle and bustle of maddening city crowds and rush) has probably ceased to be a reason why people visit hill stations.

Why People Managers Also Need to Focus on Technical Competencies and How Can They Keep Their Technical Competencies Fit and Fine?

Successful managers are good both at technical direction-setting and people management. One reason for this could be the fact that a manager who can handle both technical and people side well would have a balanced perspective.

People or Soft Skills

On one hand, people managers need competencies that are related to people management or the “soft skills” as they might be referred to as. Knowing how to deal with subordinates, peers and superiors is absolutely essential to get the work done.  People management or team management requires a very fine balancing act. All work is eventually performed by people and hence knowing how to manage people is an essential skill for a manager of people.

Technical or Hard Skills

On the other hand, however, managers also need competencies that are quite technical in nature or the “hard skills” as they might be referred to as. Knowing the "stuff" is indeed important so that the team has confidence on the manager as a problem solver or direction provider. In fact, this is that one single skill which is critical for managers so that they remain relevant as their career progresses.

Acquiring and Retaining Technical Skills

Learning the technical or the hard aspects is surely possible provided the manager consciously makes efforts in that direction. Here are some ways to enable this:

• Performing regular technical review of the team's work (this essentially involves asking right questions to the team, interpreting the responses correctly and asking good follow-up questions)
• Attending industry forums and conferences (this essentially involves getting to know the state of the art, emerging trends, newer concepts and methodologies and learning from experts)
• Investing time into self-study (this essentially involves learning through books, journals and these days through Internet also)
• Taking up speaking and writing opportunities (this essentially involves speaking at industry forums, writing papers and articles)

Why Technical Skills Need to be Focused On?

In general the people manager should have a broad-based understanding of all or most of the relevant technical skills. At the same time there should be a few relevant technical skills in which the people manager possesses strong vertical expertise (this is important to gain "technical" respect of the people being managed). This allows the people manager to know, to a certain extent of course, that the team is in the right direction at the right pace. This assumes high significance as the successes and the failures of the team are ultimately owned by the manager.

In addition, focusing only on people skills and ignoring technical skills completely is not a good career management strategy. Possessing certain technical skills means that it is easy to slide into a consultant, speaker, advisor or auditor roles at any point in one’s career, should the need arise (remember these are individual contributor roles and require technical competencies unlike typical managerial roles).

Save the Economy, Save the Jobs, Save the World

This is one amongst the handful of most pressing problems we face today in the world. Some other prominent problems being - civil unrest, terrorism, white collar corruption, etc. Economic well-being is important for the world to be able to handle other problems. And economic well-being can only ensure that not even one person in our planet goes to bed empty stomach.

Government's Role

For fighting the economic crisis we need the governments of various nations to work together and take tough and hard decisions unanimously. Nation-based governments give space to national/local aspirations but tend to slow down the pace of decision making. All governments should put the world's collective interest above the national/local aspirations.

The 2008 Recession

With recession being around the corner since 2008 the cost we have paid as a society is already humongous. If the recession continues for another 4-5 years it will simply have disastrous consequences. Just yesterday I was watching a news item on one of the channels about a man committing suicide as he lost his job and he had no savings to support his family. Individual problems will always remain but when most of the individuals in the world face the same problem, the governments should consider that problem as an issue of international importance.

Failure of Governance Mechanism

And this is precisely where international bodies have failed us and that too despite many renowned economists turned politicians and policymakers who are involved with the economic governance. Names of these individuals are not important but the extent of failed leadership is. All of us need to ensure change in governance style across the world - let us all join hands to make sure that we hand our governance to able and just hands.

Creating Jobs and Safety Net for Failed Ventures

Another pragmatic idea - we need to turn into a world of entrepreneurs and job creators. I think there should also be a basic safety net for the failed enterprises that many entrepreneurs will necessarily go through. When 100 enterprising individuals start 100 new initiatives probably a handful will eventually succeed. For those who succeed life would be rosy and pleasant. But for the remaining who fail life will become thorny and rough. A basic safety net will be the right mechanism to ensure that the failed entereprises do not spell doom for the individuals who were associated with them.

Operationalizing Social Security in India

Anyone who is born an Indian must be assured of a minimal standard of living (or roti, kapda aur makaan - as we know them better) by the government. For the nation to prosper, this is really a sine qua non.

Why social security?
 
We all know the famous Hindi phrase "bhooke pet bhajan na hot, gopaalaa". Arts, culture, science, technology and overall economic growth in a nation all depend upon its citizens living comfortably. Social security system will provide a safety net to all citizens. The primary purpose of such a system will be to ensure and guarantee all citizens of India "a minimal standard of living".

Who will benefit?

Social security system will be targeted towards all those who have been forced by the vagaries of life to loose their wealth (job loss, layoffs, etc.) or health/well-being (disability due to accidents, life threatening diseases, natural calamities, etc.).

The economic value-added by a citizen plays an important role in his "usefulness" to the economy and the society at large - this is a harsh but true statement. At the same time, the loss of wealth and health/well-being will continue in the years to come. At an individual level all the citizens are vulnerable to this. The thought that "it could have been me" would have surely come to everyone's mind at one time or the other.

How to generate the funds for this?

Government can add an additional component to income tax which will be used for funding this. Alternatively, a part of the income tax collected can be allocated to fund this.

How to operationalize this?

Social empowerment through education is the best form of social security. Investment by nation in education will generally yield positive returns. However this may not hold good in the times of recession like the one the Indian economy went through in 2008 and 2009 (along with the entire world).

There were many well-educated, highly-qualified people who were rendered jobless. The factors which led to this were beyond the control of individuals and companies. Individuals come and go, companies come and go but governments remain. And only governments possess the resources and machinery to make things happen.

Let's not forget that social security system will be targeted towards all those who have been forced by the vagaries of life to loose their wealth (job loss, layoffs, etc.) or health/well-being (disability due to accidents, life threatening diseases, natural calamities, etc.). The factors cited above do not disappear due to higher levels of education. Also, they do not appear due to lower levels of education.

Building a citizen's database by issuing identity cards to all citizens is the first step required for operationalizing the social security system.  This would help determine the funding requirements and also ensure that only those who need/deserve the "safety net" are provided the same.

Challenges and Way Forward

Agreed, it's easier said than done but do we must, nevertheless. Let's also not forget that the loss of wealth and health/well-being will continue in the years to come. At an individual level all the citizens are vulnerable to this. The thought that "it could have been me" would have surely come to everyone's mind at one time or the other.

The steps suggested above are basic and entirely doable. Social security is all about roti, kapda and makaan for all citizens. By virtue of being born into India, all its citizens should be guaranteed a minimum standard of living. The government should mobilize schemes aimed at the BPL, lower middle and middle classes as they are the most vulnerable to the vagaries of life. How many times has anyone heard of a rich family getting drowned in floods or dying because they had nothing to eat for many days?

Industrialists, businessman and traders are very important for the prosperity of the nation but a "Developed" nation is one where the marginalized and the weaker sections of the society are also assured of a minimum standard of living. The social security system would precisely address this need of the society resulting in a prosperous, strong and vibrant nation. Economic well-being is important for the all this to happen.

Professional Success May Not Always Mean Professional Happiness

"Nothing succeeds like success" this famous saying discreetly implies towards the fact that only the end matters, and the means to get to that end is not really too relevant. In the corporate context only those succeed who "can deliver" or who are the "high performers". In such a biased context "getting to the end, somehow" becomes a passion that consumes one and all. The alpha types roaming the corporate jungle is a reality that no one would probably disagree with.

The emphasis on professional success then is the behavior that is inculcated and encouraged when someone joins as a fresher (and maybe even before that as a student at a reputed institute). Achieving the topmost performance rating is considered as a direct measure of professional success and hence all those who join the corporate rat race become rating-fixated. This easily leads to a situation where the topmost performance rating may result from means which may not be truly fair. This in turn leads to professional happiness getting subsumed by professional success. There is another side to the story that those who achieve professional success are not necessarily the ones who constantly receive the topmost performance rating owing to Limitations of Performance Appraisal.

Professional success may come in various forms some of which are listed below:

• Getting admission into a reputed institute that is visited by top notch companies for placement
• Getting the best job offer
• Getting promoted
• Getting the highest raise or bonus
• Getting inducted into a high visibility assignment

In the quest toward professional success there may be situations and occasions when the path oft chosen may actually decrease professional happiness.

Professional happiness may come in various forms some of which are listed below:

• Feeling of personal fulfillment upon solving a complex business problem
• Genuine appreciation from supervisor, peers and subordinates (if any)
• Attainment of high degree of competence in specific activities or areas and being seen as the "go to guy or gal"
• Ability to sleep well in the night knowing fully that the job was indeed done in the best possible manner and not just to create such an impression on those who matter in the corporate hierarchy.

Professional happiness is inwardly focused whereas professional success is outwardly focused. Maintaining a fine balancing act is the key to ensure professional success can lead to professional happiness since professional success may not always mean professional happiness.

Importance of Appropriate Reporting Structure

Many organizations fail to understand (or feign ignorance to) the harm caused by faulty reporting structure. The emphasis in such organizations is on who has got the fanciest title of all (EVP, SVP, VP, AVP and "XVP") which unfortunately depends to a little part on competencies and job performance and to the most part on factors like years with the company, years in the current role, loyalty factor, years of experience.

What one gets in such organizations is a poorly contrived and artificially enforced reporting structure that gives a feeling of control to the owners and top executives but leads to a lot of resentment from the good performers who eventually quit resulting in loss to the organization. The owners and top executives in such cases prefer to remain in control rather than see the organization grow.

This in a few years may result in a top-heavy organization (the number of people managing per person doing the ground-level work shoots to an unhealthy ratio) and a VP doing manager-level work (due to successive promotions where the title becomes fancier at each promotion but the increase in the accountability and complexity of work is none or negligible). Because of less formal structures, more emphasis on loyalty factor and limited scope and scale of work this situation is much more prevalent in small-sized organizations as explained in Old Boys Club in Small Companies.

Some examples of faulty and inappropriate reporting structures are given below:

• An executive role has a cocktail of reporting from individuals at various levels lower down in the organizational hierarchy (such as team leads, managers, senior managers and AVPs)
• Only trusted lieutenants are allowed to become part of the leadership team and the real lieutenants report into the top executives through the trusted lieutenants
• Top-level inter-group meetings are attended only by the trusted lieutenants (loyalty triumphs over effective decision making)
• The real lieutenants have accountability sans adequate authority leading to delays in decision making and sub-optimal decisions (since the final call is always by the trusted lieutenant)
• The real lieutenants are stuck below the glass ceiling. And this makes many of them to quit as explained in Why New Hires May Quit Early On!

So what is an appropriate reporting structure then? It depends on the business context in which an organizations operates. It also depends on the degree of control the owners and top executives choose to exercise. However, it can be said that in the long term interest of the organization any reporting structure that plugs the holes in faulty and inappropriate reporting structure as described above is an appropriate reporting structure.

Palam Vihar Gurgaon

Palam Vihar is a residential colony in Gurgaon which shares one of its sides with the Delhi and Haryana border.

This colony came up in the 1980s on the outskirts of Delhi. One of the reason for this locality to come up was probably its proximity to Delhi on one side and the Maruti factory on the other side.

In fact, Gurgaon itself started taking its form around the time Maruti and its ancillaries starting coming up in Gurgaon. 

Excellent Location

The location of Palam Vihar is very convenient.

It is close to many important spots in the city of Gurgaon.

Also, there are many other advantages for those who stay in Palam Vihar because of the availability of the various facilities like hospitals, banks, schools etc. in Palam Vihar. 

Palam Vihar's USP - Proximity to Most of the Important Spots in Gurgaon and Delhi

• Old Gurgaon area that has the Sadar Bazar (wholesale market)
• Gurgaon Railway Station
• Gurgaon City and Inter-state Bus Stand
• Sheetala Mata Mandir
• National Highway 8 (which provides connectivity between Delhi - Gurgaon - Jaipur)
• Kapas Hera Bus Stand (major hub for buses coming from Delhi)
• Tau Devi Lal Park
• Maa Nanda Devi Mandir
• Delhi Airport - both Domestic and International

Hospitals in Palam Vihar

• Columbia Asia
• Metro
• Sheetala Hospital
• Kalyani Hospital

Schools in Palam Vihar

• GEMS International School
• Maurya Public School
• Chiranjiv Bharati Public School
• Euro Kids (pre-school)
• Eureka (pre-school)

Banks in Palam Vihar

• HDFC
• ICICI
• SBI
• Bank of Maharashtra
• IndusInd Bank
• Andhra Bank

Malls in Palam Vihar

• Ansal Plaza (has a multiplex also)
• Ansal Corporate plaza (has Spencer's as one of its main attraction)

When A Promotion Doesn't Really Make One Happy

Strange title for a blog post as promotion in one's career is supposed to make one very very happy. Well the point is does one really feel happy on being promoted?

When one looks at the jobs in the government and public services sector then one may probably be really happy on getting a promotion.

This might be due to the reason that the roles and responsibilities in government and public services sector are generally very well defined and it can be said that as a general rule the responsibilities generally rise along with the role in the organizational hierarchy.

In private sector though this may not be the case and the question in this post is very pertinent, "does one feel happy on a promotion?".

In private sector organizations, hire and fire is far easier compared to that in government and public sector organizations. And similar is the case with promotions.

Handing someone a promotion at times has nothing to do with a real vacancy at the higher level or individual performance. There are many other factors that drive who gets promoted.

Some of the them are listed below:

• Loyalty factor - since XYZ has completed "n" years with the organization she must be promoted now
• Attrition factor - if we don't promote employee XYZ this year she may leave
• Salary factor - XYZ is already getting a salary which is halfway through the salary range of the next level so there is no choice than to promote her otherwise by next increment her salary will reach the salary range of the level above next
• Getting Acquired factor - since the company is about to get acquired by another some select few should be promoted to gain advantage in the post-acquisition organizational structure (this is generally done for the senior management positions and, at times, may backfire badly for the select few)
• Acquirer factor - since the company is about to acquire another some select few should be promoted to gain advantage in the post-acquisition organizational structure (this is generally done for the senior management positions and, in case of acquirer, does offer good advantage to the select few)
• Good boss factor - if a happy boss presents a strong case for promoting XYZ and persists in pushing it then the promotion will happen sooner than later
• Management whims factor - the senior management thinks that someone should be promoted, just like that (the reasons would be clear to the senior management but not to the lesser mortals and that doesn't matter)

Interestingly in the case of many promotions no real advantage may come the way of the promoted other than compensation benefits . And if that is so, should one really be happy on a promotion?

After a few days of the promotion the novelty factor will die down and one would realize nothing has changed in terms of one's responsibilities and authorities. What will not change in any manner whatsoever would be the day-in and day-out activities one was doing before the promotion and after.

So, at times, a promotion may not necessarily be a promotion in the real sense. And this would be the situation "When A Promotion Doesn't Really Make One Happy".

Handling Blaming Emails

Theses days we communicate a lot using email - both at home and at office. At times you may get emails which blame or point fingers at you. It might hint at something or explicitly blame you for something that has gone wrong.

So how does one handle such emails? Here are some thoughts:

• Send a terse "*******" or "*******" message 
• Send a terse though polite "get lost" or "go to hell" or "not my problem" message 
• Send a response reversing the blame or finger pointing back to the sender
• Send a response transferring the blame or finger pointing to someone else without copying that person
• Send a response transferring the blame or finger pointing to someone else while copying that person
• Sit on the email forever, ignore and don't respond at all, never
• Sit on the email for a while, analyze the situation and send a measured response to neutralize the blame
• Don't accept or deny the blame, agree to the concern raised in the email and send a response you will analyze and suitably take care of the sender's concern
• Accept the blame if that's really the case and send a response you will take care of the sender's concern
• If the blaming or finger-pointing is motivated and not factually correct call the person first and get her concurrence and then send a response starting with "As discussed..."

Have your pick. Depending on the case, going with the appropriate choice out of the last two is generally a good idea. And if you know for sure that the blame is rightfully yours to take going ahead with the second last one is not a bad idea either. Of course sometimes you need to be a little diplomatic - so start with the third last and then go to the second last.

Senior Managers with Junior Manners

The title "Senior Managers with Junior Manners" is meant to reflect the fact that in some organizations there are those who by title are "Senior Managers" but show such an amazing lack of maturity that their actions are fit to be called "Junior Manners". Consider the following examples:

• Instead of talking one on one with someone on sensitive matters they send emails marking copies to some more similar "Senior Managers". A senior manager should write less emails and talk more to employees. And for sensitive topics emails should be avoided. Emails demeaning someone or belittling someone are a strict no no.
• Instead of supporting organizational initiatives they find faults in other departments' actions by drawing attention to inconsequential details.
• When one meets them one may get the feeling of talking to an overgrown kid. They generally fail to inspire and while interacting with them one is always worried about their "hot buttons" more than the "topic of discussion".
• They get promoted as "Senior Manager" more because of longevity factor (number of years put in) or loyalty factor (trusted lieutenant syndrome) than the competency factor (the true professional worth). This makes them think they are indispensable but others are not.
• They are hyper sensitive to things like a junior person following up with them on completing an action or asking them to complete an activity by a certain date, an office boy delivering them something from another employee rather than the employee himself/herself handing it over personally

Well the above examples show some facets of what to expect when dealing with "Senior Managers with Junior Manners". And here are some ideas on how to deal with them:

• When they say they are upset and point out something agree to them. Make sure their egos are taken care of in a tactful manner.
• Ensure some of the "Senior Managers with Senior Manners" are kept in the loop. At times it is good to leverage the relations some of these "Senior Managers with Senior Manners " share with  "Senior Managers with Junior Manners"
• Make sure you know your stuff absolutely well. There is nothing that matters more than this. And this helps in many other ways as well.

We Never Reach Anywhere We Just Pass Through

I have always thought that we never reach anywhere we just pass through to reach somewhere else and this goes on. This also means that we may probably achieve something or a lot from zero (rags to riches) but whatever we achieve in life is never final and ending! We may achieve something more or different. It is also possible that we may loose some part or all of what we have achieved (from riches to rags). That's why it's important to live life as if you are an observer rather than an actor.

Life is a Wonderful Experience

Life is full of surprises, both pleasant and nasty. Life may offer someone all riches and prosperity, or offer someone everything and then take all of it away, or from nothing give everything. Life may be more than fair to someone and grossly unfair to someone. However, all in all life is an experience worth going though.

Life Can Throw Nasty Surprises at Us

 There's an incident which deserves a mention here. While working with a small company passing through a bad phase I was told by both the owners that my role is critical and I need not worry. And then without any clue one of the major initiatives was cancelled.

One of the owner started playing games with me. He made me go through an uncertain period with utter lack of professionalism and ethics. After being confronted by me in a professional manner he said he will come back. And he did in a day or two, but in a very very mean, unprofessional and insensitive manner. I still remember the words "we have decided to shunt the X department".

Some of the Nasty Surprises Can Get Nastier

The other owner who used to fake being a professional never had the courtesy and courage to come and talk to me directly. I always felt he was an unethical, spineless, untrustworthy and very very wily like a fox.

After my departure from that company I came to know that the two unethical, shady characters had started another company. In fact the new company was started before the old started dying. It seems they only killed the old company. They very unprofessionally stole the dying company's customers (it was by sheer chance I came to know of this from a person who used to report into me in that very company).

In the End the Nasty Surprises Teach Us More about Life

It's clear that life can be nasty, ruthless and totally insensitive. However the above bad experience was also a good teacher of life. Life did not stop there but took me into a direction which was painful initially but ended in a better  shape in the end.

After having been through such an experience it's my firm belief that we never reach anywhere we just pass through to reach somewhere else and this goes on. This also means that whatever we achieve in life is never final and ending - neither for me nor for the two wily characters through whom life taught me a lot.