Irrational Exuberance or Stupidity? Part - I

For an individual that has been closely associated with the two business sectors in the US - IT Enabled Services and Retail, that have or are about to take off in the Southeast Asia region, especially India I sometimes find myself having a feeling of deja vu when reading excerpts of the astounding economic growth happening there. I have used the terms ITES in the US context because just as in India they were part of the IT growth boom in the US also.

This sense of deja vu is not of the same optimistic kind promoted and shared by a lot of other evangelists of developing world growth patterns.

I rejoice at the phenomenal growth that has and is continuing to happen in India; however I keep waiting to see some measure of hardcore economic activity in the development of physical infrastructure take place. Even when any activity to shore up physical infrastructure has / does happen it is only in response to an ancillary investment in islands of economic boom in places where there is already an ITES infrastructure.

Let's not forget what the acronym ITES stands for - Information Technology Enabled Services, in the majority of cases this is nothing but once again a fancy term for low end backroom processing support work that has been offshored to India from the more developed nations.

Support activity can only happen if there is primary business activity to be supported, if we keep on creating and encouraging an environment where home grown physical industries are decimated and discouraged we will face the same consequences that the US is currently facing.

The home grown US economy is already frayed at the edges and is starting to tear apart due to the lack of regular investments in in the physical infrastructure for almost the last 30years. Let's not forget even the robust internet era of the 1990's in the US could not keep the economy going for long.

I understand all investments follow the money trail, but you cannot have isolated islands of economic prosperity and growth in a land of 1.2billion people, not have some kind of equitable balance being maintained without having nasty repercussions. We have seen the former USSR implode and explode over ten years ago, which had similar kind of isolated pockets of growth. Granted India does have a wider base of business, but we have already seen the erosion and extinction of numerous small scale businesses and industries all over India, especially in areas far from these Special Economic Zones - SEZs.

At the time when I was moving to the US in the early '90s, major trans-national consumer (hard and soft goods) corporations were making a beeline to India to capitalize on the spending power of the - emerging Indian middle class. Many of them lost their shirts in the ensuing years and some have barely managed to stay around profitably even after all these years. This despite all the years of boom activity.

There is risk in all activity, however when people lose sight of rationality in understanding and accepting risk, it is politely termed - Irrational Exuberance, or in layman terms - Stupidity!

The Indian stock market has been growing at a double digit rates for the past few years, the real-estate situation is even worse prices are going up in triple digits and the lay people are lapping it up in the name of growth, being led around by organized opportunists - like rats dancing to the tune of the Pied Piper!

My opinions may seem harsh to many, but I have my reasons and will elaborate on them going forward.

Sample of my musings on Linked In - 14

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Is attrition a "thing" of the new century? Why isn't anybody bothered about it?



“Attrition, it can be a blessing as well as a curse for both the employer & employee, has always been there & is not a new buzz word.

When organizations face a tough competitive landscape for cost control, attrition - albeit voluntary may provide an easy way to cut spending without having to incur additional costs related to separation. Depending on the employee that departs there may be associated repercussions, for example if a key employee that is part of a crucial project or team leaves then there may be more problems, however, if a relatively non-essential/under-performing employee departs it may be a blessing?

Attrition also keeps an organization vibrant a& dynamic by infusing new ideas & talent, the flip side is loss of employees with key talent & experience possibly to competitors exacerbating the situation further.

For organizations facing high attrition rates in any industry or geographical location it is symptomatic of problems such as -

*Highly skilled workers employed in basic entry level jobs.

*Depressed wages in a high demand industry.

*Stressful & high pressure work environment.

*Improper or lack of verification of candidate credentials.

*Poor internal company culture that contradicts the projected company vision.

*Last, but not the least poor HR practices - hiring, training, & orientation of new employees.

Of the above I would like to touch on the last 3 in more detail -

In my experience employees having a short history of tenure at earlier 'jobs' are unlikely to stay longer at any future opportunity.

2ndly, their short tenure at previous positions would seriously inhibit their ability to gain expertise for future positions.

The part about internal company culture vs. projected vision. I 'm sure almost all of us can vouch for knowing organizations embodying the above. Due a meteoric rise or an isolated blockbuster product/service companies starts to live in their own 'lala land' which has absolutely no co-relation to their work practices.

Lastly, due to internal organizational pressures the HR staff is out of the communication loop when parameters are being drawn up for the various requirements internal departments have for workforce selection.

I have come across situations where requirements are so vague that all you need is a - 'warm body with a pulse' or so exacting and stringent no matter where you look you may not find a qualified candidate. Once a consensus is reached on hiring a certain individual there hardly any proper follow up regarding training/orientation.

Per my observations almost 80% of new employees get a cursory walk through of organizational practices & objectives & then get thrown into a grind-mill. There is no communication with these employees from the HR staff who after hiring take a hands off approach. There is very little if any contact of new employees with their immediate supervisors except in work related meetings, where they are supposed to listen only. Till the time they get their formal review/appraisal at least 6 months if not a year down the road, new employees are 'MAYBE" given a benchmark of performance objectives they were supposed to have been performing against. Even so no rhyme or reason is given for a majority of the ratings that are handed out. Most companies have some kind of exit interview programs, but they are hardly utilized. In HR forums everyone agrees ‘Exit interviews’ are a powerful tool to reveal causes for attrition, however most either do not use them or even when they are used nothing is done with the results.

Going back to my point about internal communication of HR staff within the organization, they have an unenviable job if it is to be done right. Almost 90% of HR recruiters are generalists & people who are usually at the entry level position of most organizations yet we put the burden of screening and selecting potential future superstars for the organization on them. Would welcome more observations... ”

Sample of my musings on Linked In - 13

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What is the funniest human resources story you have????


“My comment does not pertain to any particular incident, but to the seemingly insane, moronic, as well as oxy-moronic questions that potential qualified candidates get asked during interviews, and the person asking feels that they are going to get a real and genuine answer.

Sometimes, when I have been asked such questions I have felt like giving the 'genuine' answer, but then good sense or rather - 'hypocrisy' has prevailed and I have kept my real answer to myself. There have been instances when the person sitting next to me has asked a potential candidate one of the questions and I have had to literally choke and chortle myself from blurting something on the verge of being censored!

My list (can always be added to) with the top questions in random order -

* What is your current compensation?

* What are your current compensation expectations?

* Why do you want to leave your existing job?

* Why do you want to work with our company?

* Can we contact your current & immediate boss?

* Where do you see yourself with our organization in the next 5 years?

* What do you rate as important in your life - money, family, career, or something else?

* Can you get along with your boss?

* What kind of boss would you like?

* Why do you think we should hire you?

* What would your boss say about you?

* Do you get along with people?

* Can you work 'overtime' to finish a crucial project, if needed?

The list not all inclusive, but just a sampling.

Here's one I was actually asked by one of the biggest MNCs in India, it went like this - (after 2 hours of a grueling 2nd interview) - ...we really like what you have to offer, we are the final decision makers with no further review and would be willing to make an offer on the spot, keep in mind we have people lined up to do almost anything to work for us (true). "Would you be willing to shave your facial hair? The culture of our company predicates that people with facial hair are perceived as being lazy and incompetent. Please take 15minutes to review and let us know your answer."

I heard the offer, their condition, and expectation of the response. Without even batting an eyelid I put my papers in my bag, got up, thanked them for their time and added " ... it was a shame that they did not review my application in detail earlier, as it would have spared everyone the trouble of wasting so much time, as my photograph (a requirement for the job application) was on it with facial hair, secondly nowhere in the job ad was there such a stipulation that one had to be clean shaved!...." I extended my hand for a handshake, but then just waved, turned around and walked out of the room.

Outside, I was stopped by an HR associate who came running upto to me and asked me to wait in another room for a minute. No sooner than I went in the 2 gentlemen who supposedly held my fate (job-wise) in their hands came into congratulate me on being selected to join their company. I was a little taken aback and asked what about the 'facial hair' they brushed it off as a "TEST" to see how susceptible I would be to various pressures in compromising my integrity!”

Sample of my musings on Linked In - 12

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Call Centre Groups


“ It depends where you are based there are several such associations. If you were to do a Google search and then localize it you may find what you are looking for. You may want to check the following site

http://www.customerservicemanager.com/call-center-associations.htm ”

Sample of my musings on Linked In - 11

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What are the top 3 things that are critical for the success of your projects?


“My top 3 critical requirements for the success of any project - large or small are -

* - Clarity of Vision - CONSTANT FOCUS - through Communication, internal & external.

* - Commitment of Vision - OF ADEQUATE RESOUCES - internal & external.

* - Implementation of Vision, adhering to time-lines otherwise - ORGANIZATIONAL APATHY - sets in.”

Sample of my musings on Linked In - 10

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Google is a leading company on Internet, in the ads market, in video distribution services, mail services, map services, in networks and datacenters. They're everywhere, before everybody, how long do you think the others will survive ?



“Disruptive new offerings that would take peer to peer social networking technology and apply them to the CRM and ecommerce fields, making the marketing and sales of various services on a peer to peer targeted basis. This would eventually lead to greater and more diverse outsourcing of various services / functions by large corporations, as their scale would prevent them from entering this realm. These customized offerings could be monetized or be offered gratis depending on the provider of such services. The above could be achieved by advances in technology - hardware and software, which would come from the creation of the much anticipated and hyped ‘neural net P2P computing grid’ where each peer node would be a server and client simultaneously, thus doing away with the massive data centers that companies like GOOGLE have. Secondly, a lot of information being part of the public domain would be the base on which individual services would be built. Once again making the individual the master of their domain. I’m sure someone will point out privacy and security concerns; however I’m sure supporting technology would be available to filter and scrub the relevant personal information and yet make the information meaningful enough to others for various purposes. That’s my vision of the future…”

Sample of my musings on Linked In - 9

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Is 'BRIBING' the right thing to do to become really powerful?


“Was that a ‘real question’ or a ‘rhetorical question’ and what is the context of this question?

The reason I ask is to determine how to answer it, instead of giving an answer full of moral platitudes and ethical values.

Depending on where you are and what the business environment values are, a referral fee commission may be viewed as a ‘bribe’ in certain situations, whereas a ‘bribe’ in another environment may be business as usual somewhere else.

The second part of the question ‘ becoming powerful’ is an enigma in itself to the person asking the question. So without knowing the context of this query I guess all answers are moot…”

Sample of my musings on Linked In - 8

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How would you differentiate between skill, knowledge and competency ?


“Competency = basic / learned capability required gain knowledge and skills.

Knowledge = basic / advanced information required to perform certain functions.

Skills = the dexterity to required to perform those functions.

Expertise = Competency + Knowledge + Skills ”

Sample of my musings on Linked In - 7

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I am looking for Professionals, Managers who are responsible for outsourcing contracts.



“Please provide details on your domains of expertise, a few references of projects currently ongoing or recently completed, billing rates, and average lead times along-with your location in India. Will certainly get back to you if this passes muster with my associates. ”

Sample of my musings on Linked In - 6

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How Do I Introduce Western Style entrepreneurial skills Into countries like Malaysia, Russia, India, China, Philippines, etc.


“I am trying to understand the scope of your question/comment, based on some of the answers I'm even more confused. Are trying to provide a service to encourage entrepreneurial talent in these countries to use western marketing concepts within their own countries? If so, then you might as well take India off your list as there is no dearth of entrepreneurial skills or the knowledge of any proven marketing concept there. I would venture to go as far to say that business in India may offer concepts that are light years beyond what is currently being practiced in the west, not to mention they have been validated in their own markets. All this due to a thriving capitalist economy, despite strict government oversight. If you are trying to provide a service to assist businesses in these countries market their services and products in the west, then there may be opportunities. However, all that depends on your contacts, cost structure, and the services that you can provide. All of which is no different from any other business service - B2B, B2C, MLM, etc. ”

Sample of my musings on Linked In - 5

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Is everyone at Linked in Single? or am I missing my 'prospects' :-) ?


“Maybe I'm missing something, but the link to your site is password protected...even before you see a web page???? Could that possibly be the cause of your problem...???? I used IE & FF, access issues...preventing even a look see?”

Sample of my musings on Linked In - 4

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How do you ask a former star employee to leave?



“Your question on "How to?" seems a little more in-depth than just a superficial question to a performance related situation.

You mention - - this person is emotionally attached to the company

- Why / How ? - is this person a former partner who is not happy with a new direction the organization may be going?

- Was this person promised / awarded with high rewards compared to initial baseline
expectations than what the company initially had? Now that that the business is maturing the expectations are different? So a change in star status????

- Since yours may still be a fledgling organization you may not have a formal HR setup and everyone maybe viewing themselves as having potential ownership of the company, though in reality there may be only one or two real owners.

- No matter where you are or what you do a - 'friend' is never perceived as a - 'boss' or 'mentor', so don't try to become a 'boss' now after being a 'friend'. You will usually be ignored at best and / or be viewed with antagonism and being arrogant otherwise.

My suggestion is to have a peer of your's have a formal heart to heart talk with this associate and plant a seed of separation on either a voluntary or involuntary basis. Sometimes even the office grapevine has it's uses in resolving such issues. This way if and when you finally discuss the separation issue directly it will not come as a surprise to this individual as then it would be viewed as inevitable since others in the work place knew of it also.

Lastly, I can't imagine having dead weight around as you imply is good for the company bottom-line, so also mention that the organization's finances cannot support operational inefficiencies therefore separation would be the most mutually beneficial option. Keep the discussion focussed on the organizational needs and expectations, do not delve into personal issues, habits, or behaviour as this would be counter-productive.

Be firm, but compassionate. Offer a personal recommendation to assist with new endevours if the person requests and keep it brief and business oriented. Hopefully, your friendship will survive this incident."

Sample of my musings on Linked In - 3

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Greed is good. But what’s better than greed?



“Having your CAKE and being ABLE TO EAT IT !

Greed is only a CONCEPT, a means to an end... THE CAKE !

If you never get the CAKE, and always keep running after it - You are labeled GREEDY !

Those that have are - CONTENT, those that don't have are - GREEDY !

CONTENTMENT IS BLISS !!!!!!!!!”

Sample of my musings on Linked In - 2

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Ralph Nader. Friend or Foe?


“Ralph... who???”