Cover of book on Mr. Ratan Tata  The chairman of Tata Trusts and former chairman of Tata Sons, Mr. Ratan Tata, passed away on the 10th of October. The last two days have been filled with coverage of Mr. Tata's contributions to the country, the economy, and the global business world. Numerous articles and reports highlight his contribution primarily as a great philanthropist who worked for the cause of ethical business, which the Tata Group has been known for over the last 100+ years. While narrating how Mr. Tata's contribution was acknowledged in her school, even my daughter told me that they were told Mr. Tata was a great philanthropist.  I have been a little taken aback because most media and people have focused on his philanthropy and not his business achievements or entrepreneurship-related activities. This got me thinking about how I view the transformation that Mr. Tata brought about during his tenure as chairman of Tata Sons, where his contribution was far more pronounc...

Photo by Chelsea Aaron on Unsplash Elections are currently underway in India, the world's largest democracy. However, the political discourse appears to be disconnected from the pressing issues faced by its populace, particularly the youth. Instead of addressing the genuine concerns of the electorate, candidates from both the ruling and opposition parties seem preoccupied with religious polarization on one side or empty dole-out promises on the other. India boasts the world's largest young population, yet even the political rhetoric, leave alone the political action, fails to resonate ideas for the young and productive generation. Rather than offering relevant agendas, the electorate is inundated with divisive narratives and superficial pledges. For a young population, the most critical area that urgently requires attention is education. India's education system poses the most significant challenge for a country with the largest base of young population.  India's publi...

Today is 1st May, also traditionally celebrated as Labor Day and has long been a symbol of workers' rights and the achievements of the labor movement. However, in today's rapidly evolving work landscape, characterized by a shift towards knowledge-based professions and remote work culture, I find it to be an anachronistic, a relic of an industrial past which we have left behind at least 30 years ago. The traditional concept of "labor" as associated with manual work on assembly lines is increasingly outdated in today's economy. A significant portion of the workforce now comprises knowledge workers, whose value lies not in the hours they put in, but in the expertise and unique skills they bring to their roles. Unlike interchangeable factory workers, professionals are irreplaceable assets, requiring specialized recruitment strategies to attract and retain top talent [1]. In fact, the term "knowledge worker " may no longer accurately capture the essence of t...

  Photo by Documerica on Unsplash They built a new 4-lane road near my house - a spanking new concretized stretch now exists in place of a dusty swamp which the locals negotiated on foot until recently. But its state is more like the Hindi idiom - गाँव बसा नहीं, लुटेरे आ गए (meaning: Robbery committed even before the Village could set up). Buses, trucks, and tempos park on one side, making it a single lane road. Most of these vehicles are parked all day - not just during the day or during the night. Why do these vehicles park on new roads all the time? For some, like taxis waiting time is much higher than driving time - certain cabbies can make enough in one trip across the city to earn a day's living (and they are often lazy not to make more!). Few other cars belong to residents who use public transport for daily commute, but need a car for occasional usage, and while they can afford to buy a car, they don't have parking space in their building. Further, India is far behind o...

These two headlines caught my attention in this morning's newspaper. Juxtaposed next to each other, both of them make the patriotic Indian in me jump with joy - these are the kinds of news headlines we longed for since adolescence. Albeit, while the adolescent me would have jumped with joy on reading these, the older mature me is circumspect, even borderline skeptical of the effect these will have on the Indian economy in general, and well being of Indians in specific. My skepticism follows from a series of policy news that has been emanating from the South Block off late. On 3rd August, Government of India (GOI) banned the import of laptops and other electronics used heavily in India's booming IT sector. Prior to that, as a post pandemic stimulus measure for Make In India, the Modi administration had announced several PLI Schemes ( Production Linked Incentive ) for various sectors. These schemes claim to incentivize setting up of industries in strategic sectors or expedite the...

The principal-agent problem [PAP], in political science and economics, occurs when one person or entity (the "agent"), is able to make decisions and/or take actions on behalf of, or that impact, another person or entity: the "principal". This dilemma exists in circumstances where agents are motivated to act in their own best interests, which are contrary to those of their principals, and is an example of moral hazard. One of the relatable cases of PAP is sales - the sales executive is likely to motivate you to buy those products where s/he earns more commissions, rather than those which are cheaper or beneficial for you. This problem occurs in any kind of a sale whether its a kitchen appliance or insurance product. Maybe you've already guessed where I am going with this - the PAP with taxes. The government is an agent which levies a charge (taxes) on its people - possibly the strangest of principal-agent relationships [in all other cases, the agent is usually pa...

If you have ever visited Jabalpur, you surely would have taken a boat ride across 'Bandar Kodini' at the Bhedaghat waterfalls. The boat ride initially takes you along the Narmada river at a leisurely pace, as you gape in wonder at the majestic white cliffs - a hundred feet tall on both sides - changing colour. They do not actually change colours, the cliffs comprise of many shades of marble and as the rays of the sun bounce off their surface, give an illusion of changing colours. And then as your boat ride comes to a close, the tranquil waters of the river gain a sense of urgency after a point and turn turbulent as they crash down the Dhuandhar falls. I don't know if the new Finance Minister Nirmala Sitharaman has ever visited Bhedaghat, but she might be able to relate this with the experience she is going to have with the Indian economy. The two giant cliffs she is rowing the boat between are Slowdown in Economy and Managing Inflation. With the NDA government having ...

I have written in past about how a services business is hard to scale. While one would lament at the non-scalable nature of the consulting business, at the same time these businesses can claim a very high premium in their services. Conversely, when a product or a service becomes 'commoditized' - it stops commanding a premium. The less 'scalable' something, the more valuable it becomes. If one could produce a million copies of Picaso's work, or every dining hall could have the Monalisa - the value of great artists or great works of art would diminish. Even if this example sounds extreme - it explains an important principle which can then explain certain other phenomena of the business world.  For example, take the culinary business - it is possible to standardise not just the process of making food but even the ingredients used in food, to build a super scalable restaurant business like McDonalds - yet the price point which a McDonalds can claim will nev...

Jim Collins has been researching and writing about the Flywheel as a value of enterprises. For those who may not know, here his most famous illustration - the Amazon Flywheel. Lower prices led to more customer visits. More customers increased the volume of sales and attracted more commission-paying third-party sellers to the site. That allowed Amazon to get more out of fixed costs like the fulfillment centers and the servers needed to run the website. This greater efficiency then enabled it to lower prices further. In another article , Jim writes - " those who drive companies into decline often abandon the big thing they already have, grasping instead for a new big thing, then another and another, falling into a doom loop of chronic inconsistency " While not written in the article above, but my experience says that 'Consulting / System Integrator Services' is plagued by this particular phenomenon. Consulting firms are forced to move from one "next big thi...

Continued from here: Viraam: विराम (Arthvyavastha - Part IV ). "Guruji!", Saakshaat called out to Kalpakji, his teacher (Guru) as they walked towards the Banyan tree in front of the Panchayat Bhavan, "You remember there used to be days when you would announce a test only to make us study the whole night, and then announce a cancellation the next day when everyone came ready for it?" Kalpakji smiled, he knew what Saakshaat was hinting at. "Yes, I do. But remember when the same exam was announced two weeks later, you all were better prepared for it! Do you agree Aanglesh?", Kalpakji had deliberately asked Aanglesh, noticing that he had been quiet all along after the meeting. "Yes Guruji, but you know - one thing that always made me study harder for every exam?" Kalpakji could not guess where this was going, he looked questioningly towards Saakshaat, but he too was clueless. Aanglesh replied on his own - "the fact that I knew I will be jud...

Continued from here  (Vinimay: Arthvyavastha - Part III) When Saakshaat informed Aanglesh that his father Seth Pramanikji would also accompany Pramukhji, colour drained from Aanglesh's face. Aanglesh told Saakshaat that his father was a staunch disciple of Pramukhji and was as much in doubt of the tamrapatrak schemes as Pramukhji himself. This was a jolt to Saaskshaat, he had never expected that Pramanikji, a trader himself and whose son was the first and the largest beneficiary of the tamrapatrak vyvastha would be against the novel concept. He had expected Pramanikji's presence to bolster their position, but now on the contrary he felt even more vulnerable. Saakshaat and Aanglesh had spent the whole night preparing for meeting Pramukhji and Pramanikji. They talked to Anugam about any positives of tamrapatraks which he could identify to impress the village elders with. Anugam mentioned that the tamrapatrak scheme had benefited the society in two major ways - first that ...