Wednesday 27 March 2013

Age is just a Number!


I recently attended the NASSCOM India Leadership Forum in Mumbai.  Being amidst the who’s who of the IT Industry; it gave me a great sense of belonging. I was proud and happy to be home. I then read an article in a periodic publication which said, “SIGNS of middle age were obvious at a recent gathering… It was hard to spot anyone close to India’s median age of 26.” This got me thinking. Does age really matter? The instant debate that began in my mind was inescapable.

Majority of the successful honchos present across the country today are from the older lot, falling in the age group of 50 years and above. But with that age, comes wisdom and abilities to follow direction, mentor those present around, and lead. One reason that counts in their favour is the substantial bit of experience that they have garnered across the years. Such people also tend to be more pragmatic and loyal, and understand the importance of being team players. 

Having said that, looking at it from a different angle, very recently I read about Google’s Andy Rubin, who had been heading the company’s Android division, stepped down and was replaced by Sundar Pichai. Pichai is an IIT Kharagpur alumnus who also heads Google’s Chrome division.

I accept as true that younger workers have more energy and are sometimes more creative. But there is a lot they can only know until they gain considerable experience. Furthermore, these talented young adults are not merely workers. They are also more likely to be entrepreneurs, forming the next generation of companies that not only power metropolitan but also contribute in national growth.
Moreover, a lot of CEOs who are running successful companies are in their 40s and 70s. Many of them think that age has little to do with success and leadership. What matters far more is whether executives see the heart of their career and accomplishments ahead of them or behind.

So at one end there are the young, who find themselves intimidated by the more, experienced and the brainy lot while the newcomers come across as being far smart and faster than veterans believe they themselves are.

As the industries across the world prove that with time evolving continuously, the expertise and opportunities are persistently increasing and hence we see younger CEO’s and MD’s taking over on the top panel of various big organizations. However, it also shows that the age of initiation into the ‘CEO group’ is decreasing and that day is not far when conclaves of experts across industries would see a large group of 20-somethings taking the lead. And it’s yet to be seen how things fare for all.

Wednesday 20 March 2013

Breaking the age old Myth


Nelson Mandela was the most significant African leader who stood against racism and apartheid in South Africa, while many in the world were silent. He dreamt of a democratic and free society in which people live together in harmony with equal opportunities. The words from his book ‘Long Walk to Freedom’ that describe a leader, hold great importance for today’s work culture seen across organizations throughout the world. He said that a leader . . . is like a shepherd. He stays behind the flock, letting the most nimble go out ahead, whereupon the others follow, not realizing that all along they are being directed from behind.

A lot has already been written about commanders in the recent past. Even if you go to your nearest bookstore, you’ll find shelves full of books written by politicians, business people, and athletes on how to be a leader. Is there a secret recipe to make you a leader? I don’t think so. But there are some common traits that all real leaders share.

Also, there’s a common myth attached to the concept of leadership. Many believe that leaders are born, not made. By far it is the most frequently heard or used phrase when asked about who a leader is or what leadership is. 

But I believe that good chiefs’ are made and are not born. Some people may have more natural intelligence or innate speaking skills or are more outgoing and these may be helpful in management. But one can learn commandership skills, not in the old lecture-take-notes model, but through a never ending process of self-study, experience, dialogue, role modeling, feedback, coaching, mentoring, and so on. Also, if one has the desire and willpower, no one can stop him/her from becoming an effective leader. The inimitable leaders always stand tall where ever they are planted and transform the life of the people around them.

To inspire the people around, there are certain things you must be, know, and, do. These do not come naturally, but are acquired through continual work and study.

Successful honchos understand the difference between things and people in an organization. They know that it's important to manage things, but that it's even more important to lead people. For instance, your position as a manager, supervisor, etc. in an organization, gives you the authority to accomplish certain tasks and objectives laid. This is known as assigned leadership. But this power does not make you a leader; rather it simply makes you a boss. Leadership is something that makes the followers want to achieve high goals rather than bossing around them, which is referred to as the emergent leadership.

This demonstrates that people – not strategy or products – are the most critical factor in an organization’s performance. Which is why, leaders invest heavily in growing and developing people, while managers see people as objects to be commanded and controlled. Therefore, you get an Assigned Leadership by your position and you display an Emergent Leadership by influencing people to do great things.

Wednesday 13 March 2013

A ‘serious’ dose of austerity


Time and again, warnings about the dangers of austerity (a state of reduced spending and increased frugality in the financial sector) have grown louder across the world. The very recent being that in the US after President Obama reluctantly signed and ordered an $85 billion austerity drive which can eventually damage the economy and slash jobs.

To address the fiscal problems and spur growth in the country, the Government of India has many a times taken austerity measures in the past, like recently the finance minister has cut the government spending by nine percent this year, and a 10-percent cut is expected for next year in the budget. But in a country like ours, where the issue of unemployment already continues to persist, an austerity regime will further lead to compromising on the quality of life and the living standard of the people.

Austerity measures generally refer to the measures taken by governments to reduce expenditures in an attempt to shrink their growing budget deficits. Therefore, I feel, in India, where anyway the unemployment rate is so immense that lately young people have started to believe that they have no future here, and that their existence is being embittered. The austerity measures are perhaps not good because they tend to lower the quantity and quality of services and benefits provided by the government.

The global policymakers have also dramatically underestimated the significance of government spending during a recession period. This has also resulted in administration expecting unassuming pull from severity which has later seen their economies plunging back into a devastating recession.

Hence, the austerity measures, though required sometimes, must not be considered as the only way out for economic recovery; they are just an option of the last resort.

Also these austerity measures increase the social instability in any society. For instance, if you look at Britain and the rest of Europe, you will get to know how terrible austerity measures have been and that they haven’t, in any way, resolved the economic crisis.

Wednesday 6 March 2013

Super Rich or “All” Super Rich?


 After the Government of India took enough pains balancing the budget, the taxpayer now has the job of budgeting the balance. Post the recently proposed Union Budget 2013-14, the Finance Ministry has introduced various measures to accelerate the growth of the Indian economy.

To restore the health of the economy and look forward to much higher growth ahead of national elections, due by next year, Finance Minister P. Chidambaram went on  to levy more taxes on the rich of India. What led to a large hue and cry by the high-earning Indians was the announcement of a surcharge of 10% on those earning an income of Rs.1 Crore or more, the measure being in place for only a year.

How the government plans to identify these ‘super-rich’ individuals, with the absence of a clear definition of who the government considers as ‘super- rich’ is a question that will be raised not far from today. 

I believe the predicament that the government will have to face today is the discrepancy between the number of registered tax payers and the actual people who pay their taxes. The need of hour is better administration.  The finance minister has already pointed out that there are around only 42,800 people who will be affected by the extra tax on pay above Rs. 1 Crore. But there are a substantial number of individuals with good income who fall in this bracket. The focus, hence, needs to be on ensuring that the individuals who are avoiding the taxes should be brought under the tax net. Even as this move will ensure larger numbers in terms of tax returns to the government, the real issue is around compliance. Better compliance will eventually bring more people, who have thus far avoided taxes, into the net.

Not being able to identify these evaders, let’s call them ‘super secret’ of India, can lead to 2 uncomfortable situations for the Government:
  1.  The confidence of the 42,800 tax payers, who declare their assets & hence pay taxes, in the government, will suffer a blow if they know that there is a wider group who comes under the said slab, yet are not paying the rightful tax.
  2.  If in case in the future, the ‘super secret’ of India are revealed, the FM’s proposal of the 10% levy will fall flat, owing to the revelation that the government was unable to chart out a clear method to bring this group to light.

Maybe the "amnesty" given out to the large population of people avoiding taxes will get them to pay their taxes. But the government has to showcase accountability and that all the tax payments are put into good use for the betterment of all concerned.

Dr. Radha Krishnan, the Second President of India, once observed “the practitioner of this evil - the hoarders, the profiteers, the black marketers, and speculators are the worst enemies of our country. They have to be dealt with sternly, however well placed, important and influential they may be, if we acquiesce in wrong-doing, people will lose faith in us.” And it may already be coming true, with so many cases of money laundering and corruption cases crawling out of the wood work, the Government is already drawing flak from all corners. But maybe if they can get back to identifying "the wrong-doers” and of course, the absent tax payers, then maybe faith will be restored.

But in the end, it is not for the government to remind us, but our duty and responsibility.