Diversified Development : Gobalize Resources to Peg the Poverty and Peak the Prosperity

I believe - I'm not a political expert, but I believe there is a broad consensus, a middle ground if you will, that Democrats and Republicans, business people and workers can agree on, to get this - the economy growing faster, getting people back to work.

Austan Goolsbee

Extremes are dangerous. It robs your wealth or from other’s. Oil is one phenomenon. Countries pinning their economy on oil suffer today on account of the sudden crash. Oil exporting countries prospering for the last few years on account of higher prices are bleeding. The vice versa for those countries which extremely depended on importing the same. Ofcourse, it’s time for them to rejoice since they can save more money and prosper. The natural balancing act..

Manufacturing achieves precision with tolerances. They train themselves to be always in the middle of the tolerance and they succeed in precision. Economies also should go towards the middle path.

Pegging the most of the earnings on one particular source is equal to be in extremes. This does not augur well in the long term since when turbulence hit, you have no ground to cover. In manufacturing, when they are hit by constraints, they have the allowance to manage and still hold on to their precision.

Diversified development is critical for every country irrespective of their natural strength. In management we use to call this de-risking. When there are multiple portfolios which can earn revenues the impact can be minimized during crisis.

Water, Food, Fuel and Energy are critical for every nation and globally we need to find formulae to ensure every country is self sustained on the same. These four should be made a global asset and it’s meant for mankind. In fact it should be available as a birth right to every living being.

The per-capita consumption of the four should be arrived at on the global population and the same should be given for access across the world. Once we move to such a thought process, there can be a global institution which identifies the potential of each country on these four and help through technology transfer to mine these in every country to maintain equilibrium.

This means, these four will be out of the GDP of the each country as per-capita consumption is pegged equally as matter of right. The economic prosperity of each country should be based on, outside these four critical requirements.

By this I believe strongly the man kind will be fully relieved of survival pressure and per-capita contribution towards prosperity will move up substantially. Globally there will be huge savings and people will be out of poverty as a whole.

There will be more time and mind space for creativity and innovation and this will be the key differentiator in terms of prosperity index among various countries.

  

Imagine a situation where, every individual in the world is entitled to per-capita Food, Water, Fuel and Energy. Suddenly there will be global peace. The whole bunch of world leaders are talking about global peace and harmony and by globalizing these four critical factors we can solve the war, terrorism and inequality in one shot.

We need to say, no country owns any natural resources. This is common to all. Every human and other living being are entitled to appropriate requirement of these resources for daily use. This will not be pegged to money power.

With this, the poverty can be wiped out and every human asset will start becoming a productive asset their by contributing towards taking the global development to newer heights through positive thought process.

Developed Economies, Developing Economies, Emerging Economies and Under Developed World are all classifications based on percapita income and national income. Once the entire world is self sustained on Water, Food, Energy and Fuel, these formulae will go for a six.

The wealth of the nation will be indexed on the strength of the Health and the ability of the country to nurture education, creativity and Innovation.

We need a global thought leader who can inspire the whole world towards the concept of globalizing the key assets and making it accessible to all equally. Such a leader can bring transformation to the whole world and make the earth a heaven.

For those who don’t believe in god, probably he will be, and for those who believe in god, he may be god sent….

Anyway at the moment, it is my wishful thinking

Merry Christmas and Advanced Wished for Prosperous New Year.

T Margabandhu

M/s Marggo India 

Marggo's Blog: Innovation Iceberg: Invisible Organizations Contri...

Marggo's Blog: Innvoation Iceberg: Invisible Organizations Contri...: Somebody has to bust the perception that Innovations are always from the Developed World. The more pronounced is the belief that Innovatio...

Innvoation Iceberg: Invisible Organizations Contributing to Global Innovations

Somebody has to bust the perception that Innovations are always from the Developed World. The more pronounced is the belief that Innovation means all about new products. So, naturally the great product companies are charting the best of innovations year after year. 

Professor Nirmalya Kumar of London Business School has come out with stunning information that majority of the innovations are happening in India, since companies involved in Innovation across quartiles are having their R&D base in India. He claims, low profile Indians are playing a significant role in the research and development efforts of large MNC’s and India will become a global Hub for Innovation. Process plays an important role in the development of the product and third world is becoming the centre for excellence in operational efficiency. He calls that as invisible innovation and it is unfortunate we are not getting the visibility on that.

It will be a big morale booster for the demographic profile of the country ,since the critical fact is that the people involved in such invisible innovations are all not those academic stars but those who have their normal education, but still able to deliver to the demands of global standards. Schools and colleges in India should be aware of this and this can generate lots of positive energy among the teaching and the learning community.

I am equally stunned on why government is not using its machinery to propagate this on a measured way. This can boost the confidence among the children and youth of the country, that they too can contribute to innovation and creativity and it does not warrant that one should be from the best of academics to lay their minds on such things.

Come to think of SME’s, we do not have any data on what kinds of innovations are happening at that level?  Many small companies may be into innovations and they may succeed and fail, but never the world will come to know about the same.

SME’s are the best place for creativity and innovations to happen, since small business units can have better control over such activities and also have some level of cost discipline. The authorities should come with some interesting schemes which can induce small players to mandatorily get involved in innovations which can contribute to the world at large.

Every innovation depending upon its potential and impact should be recognized and there must be a system through which such things that are happening at the bottom of the pyramid are captured and rewarded.

Failed innovations also need to be captured, evaluated and recognized, to motivate such entities to involve themselves on such initiatives on concurrent basis.

Today Organizations are challenged by the changing dynamics of the market and volatile behavior of the customer, leaving Value creation through cost discipline and process efficiency delivering limited success. Though they are essential and cannot be ignored, relying upon the same for business growth cannot generate higher valuation multiples.

Organizations irrespective of the size, looking for progressive growth, are in search for approaches which can meet the challenges thrown by the changing market dynamics.

BCG talking about Business Model Innovation considers two critical factors which determine the future prospects of Organizations.

• 1.       Entities defending their business models against declining industry trends
• 2.       Entities looking for breakout growth

How proactive organizations are, in identifying their business, in one of the above is very critical and Innovative business models are required on how to approach in the given situation for sustenance. Globalization and fast changing technologies are going to pose constant threats and even SME’s should get into the culture of innovation no matter how small they are, in order to grow in shorter economic and business cycles.

Business should operate on agile operating model which responds through comprehensive change in

• ·         Strategy
• ·         Organization Culture
• ·         People and Process Management

in order to scale up and grow in dynamic business environment. 

T Margabandhu

Marggo's Blog: Pursuit on People and Planet, will push the Prospe...

Marggo's Blog: Pursuit on People and Planet, will push the Prospe...:       It has been over 5 years since the great financial crisis had hit the global causing enormous damage and...

While the World Skids on Plummeting Oil, India can stay firm, Smoothening Growth Propspects

Crude is plummeting on account of weak global demand, sending waves of shock across Russia, Iran and Venezuela etc. as these countries run their economies on Oil trade. The conditions are perfect for countries like India and China who are dependent on oil imports and the kind of fall in prices make them smile with their cash chest relatively looking better.

The seeds of the supply shock were planted a little more than a decade ago in north Texas when U.S. companies pioneered horizontal drilling techniques combined with hydraulic fracturing technology. The result: wringing oil and gas out of rocks previously thought to be unworkable.

This Shale technology discreetly developed by US has been kept under wraps for initial few years, which has made them to move ahead on their energy sustenance leaving the rest of world to eat their fingers.

This can damage Russia’s economy badly not to mention about Venezuela which is in a precarious state, if the price of Oil stays at around $80 for a prolonged period. This can be a kind of geo political war as few of the Opec countries are supporting the cause by keeping the prices low leaving others within the group high and dry.

Oil can help Russia to get marginalized for which Europe or OPEC is not going to complain. It is going to be interesting as the global economies will go through varying fortunes on account of the new situation. The world will love to have Oil at above $85 to avoid any disruptions. All will depend on how the US who are the clear winner of the situation plan his shale output and OPEC’s strategy on curtailing production.

Back to India nothing can be better for Modi than the given situation. The government balance sheet should look better with lower oil liability and deregulated fuel prices. Modi and Rajan, the Governor of the Apex Bank can have their task cut out for “Make In India” project to become successful as they can leverage on import of technology to revive Indian Manufacturing which is under doldrums due to policy paralysis.

It has been a while since Modi took over, but nothing much has happened on the policy side. Though the belief on Modi’s deliverables is strong and intact among business community and people at large, there is a bit of restlessness creeping in as the days pass by. The fiscal is improving and inflation is loosening out. You can’t expect more than this for the government to step up growth process.

Geopolitics and Local elections are dampeners. These are taking the Prime Ministers focus away from the growth agenda. Sooner he gets back to the core it is better.

Organizational ExcellenceThrough Change Management Critical for SME's: Thrust, Not wait for them to Seek

It has now become an old saying that adopting to change is the biggest challenge for survival. The dynamics of change are so rapid that many organizations fail to realize the change happening, not to say much about responses.

Organizational Excellence Consultants are pretty much engaged with Enterprises which are willing to grow and seeking support to indentify and navigate on the course that can help their purpose of sustainability.

BCG in their report has covered critical factors which help the organization and its members on alignment towards their vision.

Change is the critical factor. Adopting to change should become a Culture. The leadership focus should be on empowering the individuals to drive towards the change and set management processes which can guide the transformation without diluting on the Organization Purpose.

A stand alone team focusing on change in culture is an onward looking thought process which large and medium sized companies can implement. SME’s should ideally outsource management experts to support the cause for seamless change management culture.

The first generation entrepreneurs’ runnings the business on old economic style are the perfect targets for Culture Change Process. While we cannot belittle their efforts to develop their business and sustain across challenging cycles, they are the ones who are at the risk of being hit by the storms like market dynamics and globalization. They are perfect potential for growth if they are ably supported in building response mechanism to external distortions.

The capitalist theory of Rich becoming Richer and Poor being Poor may also fit into enterprise mapping as we hardly see the SME’s becoming big as they continue to live on survival zone for decades. In fact many SME owners preferred such a status as they deliberately allowed the enterprise to stay in survival zone but ensured their individual wealth growing better.

It made economic sense for SME’s to keep their enterprise on arithmetic progression and ensure their personal wealth growing on geometric progression, with weak government policies and tax structures.

In the new century of globalization, the old economy SME’s need advisors who can guide them to move out of such culture and help them on adopting to culture change through

• Change Management
• Transparency & Communication across employee chain
• People and Process Excellence
• Alignment of organization Vision with that of its Employees
• People Empowerment
• Shared Values

SME’s are the back bone of many economies and they play a critical role in the economic growth. Unfortunately, they are not being part of the growth story. Neither their people are part of the prosperity. This trend needs to change. They should not be the contributors alone but should become participants of growth.
The famous saying of Steve Jobs “Customer does not know what they want and we need to give them” is more so relevant to SME’s. There is an urgent need for old economic SME’s to go for change management and Organizational 
Excellence Consultants have to take this concept to them rather than waiting for the SME Sector to seek their help.

T Margabandhu

Robotics on Inflection. Can this transform business landscape?

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As per BCG report , the size of this coming wave of robotics is staggering: spending on robots worldwide is expected to jump from just over $15 billion in 2010 to about $67 billion by 2025. Driving this growth is a convergence of falling prices and performance improvements.

The cost of high-quality robots and components is dropping rapidly, while CPUs are getting faster, and application programming is getting easier. As robots become cheaper, smaller, and more energy efficient, they gain flexibility and finesse, increasing the breadth of potential applications.

This can transform manufacturing economics and can bring cost convergence across the globe. May not be a great news for third world economies since they thrive on cheaper cost of production to achieve sustenance. Rapid adoption to changing patterns are critical for countries like India which is labor intensive and dominates on lower cost.

If robots can lay their hands on critical and complex applications, going forward precision manufacturing can become cheaper. Smart Machines and Smart robots can become a deadly combination which can reduce lead time and improve gross quality levels thus reducing cost, but can throw a big challenge to the bottom of the pyramid.

The biggest risk will be for the supply chain. The operational architecture of production facility will change dramatically and localization can be achieved much rapidly. Smart Factories will become much easier to create at any local points which are closer to the market since labor will become a less critical factor.

Countries depending on manufacturing as their critical base have to get prepared for the changes as the regional difference will become null with the replacement of human work force with robots. Countries should start investing more into creating robotic infrastructure which can become the source of attraction for new investments.

The industrial sector which has invested around $6bln in 2010 on robotics will double the same by 2015 and will cross around $16bln by 2020.

Estimating the global manufacturing labor costs at $6 trillion annually, McKinsey forecast that advanced robotics could have an economic impact on the manufacturing sector of between $720 billion to $1.45 trillion annually.

Robotics is at an inflection point. Like mobile and technology revolution this can bring about sweeping changes to the global economies on their structural growth, but then the impact on independent countries will depend on their ability to adopt to changes.

Character Building : Fostering Fertile Brains for Fertile Nations

Organization does not really accomplish anything. The theories of Management don’t matter much. Its belief on People that makes endeavor succeed.

A very old thought but relevant even in today’s Hi-tech life. 

Unless we work on people development, the per-capita productivity cannot be increased at global level. The two speed world will have its turbulence, if necessary spent on time and energy to increase output from people, are not taken up seriously. 

Basically the world is full of doers and producers. The spread is not much inclusive when it comes to creators and innovators. The West has been in dominance when it comes to creation and innovation.  The east has always been trailing on any inventions. 

Be it God sent or Nature design, Humans have the advantage of having brains. The aggregate of the Belief, Positive Energy, Imagination, Failure and Darshan on the thoughts of the mankind can make brains fertile.  This we call it as Character Building. 

Children and Youth should undergo Character Building process on parallel stream along with their academics in order to achieve inclusive prosperity and Nation Building. Schools and Colleges should focus on Character Building as a extracurricular activity to enable children and youth to go stronger on their value system. 

 

Fertile Brains

Fertile Brains engages in Character Building that helps to build Human Capital which is vital for the growth of organizations, Institutions and the Society at large. The objective is to influence upon the individuals to make use of the fertile part of their brain i.e. neo-frontal cortex, that helps to transform them into personalities. It is this transformation of “person to personality “which leads Nation to prosper through size and strength.

The inner desire of every human to produce work which attracts praise and applaud is far greater than any of the desire. To make use of the fertile territory of the Brain, and continue to feed it becomes very necessary in order to ensure that they are living. But the problem with the fertile territory of the brain is that, it sleeps with no Exposure and needs continuous hammering

Belief

“Belief makes incredible things to happen. Dramatic things keeps happening in real life, be it a turnaround stories of bleeding companies or remarkable recovery of dying patients, through one single energy source that is belief. Many times individuals with strong convictions have outperformed the collective oppositions. We can imagine the impact of collective beliefs which can transform the quality of mankind.

The Power of belief is immeasurable as it is subjective truth. The collective wisdom of crores and crores of people thronging to different temples across religion and across social status signifies the belief structure, since the value derived is intangible. It is this belief which enables miracles to happen through the flow of positive energy

Positive Energy

Every moment we have a choice – to be at peace or to be in resistance. When we are at peace we attract positive energy and when we resist we create negative vibes that reflect back on our being. It’s a simple choice and yet most people unconsciously choose to live in negativity.

It’s not our boss, colleagues, parents, or the traffic, but our own perception that creates stress and negative energy. Circumstances are neutral. We will generate positive vibes when our inner state is one of alignment and congruence, instead of being resistive.

Imagination 

Imagination is a creative power that is necessary for inventing an instrument, designing a dress or a house, painting a picture or writing a book. The creative power of imagination has an important role in the achievement of success in any field. What we imagine with faith and feelings comes into being. It is the important ingredient of creative visualization, positive thinking and affirmations.

A developed and strong imagination does not make you a daydreamer and impractical. On the contrary, it strengthens your creative abilities, and is a great tool for recreating and remodelling your world and life.
This is a great power that can change your whole life. It is used extensively in magic, creative visualization and affirmations. It is the creator of circumstances and events. When you know how to work with it, you can make your hearts' desires come true.

Fear of Failure

Fear of failure is closely linked to fear of rejection and criticism from others, as well as to procrastination and excuse making. You can always create an excuse not to do anything, no matter how potentially valuable and rewarding. It's just whether you choose to believe those excuses
"Our doubts are traitors, and make us lose the good we oft might win by fearing to attempt.
Fearing failure to the point that we don't even try something prevents us from ever truly knowing what we might just be capable of

Darshan

Fear is far more familiar emotion than ideas emerging from imagination. Open our eyes and do darshan. Darshan means looking beyond the measurable. Darshan has the power to make business growth an outcome of people growth. The world is diverse and so focus more on gaze than goals. The intellectual growth happens through darshan. The economic growth should be a by product of the emotional and intellectual growth and darshan is the tool which enables to achieve the same.

Character Building can enable Children and Youth to get their thoughts flow on Creativity and Innovation.  Nations have to look inside for growth as the liquidity glut and globalization are no more a driving factor. Per capita yield from people has to go up substantially to ensure there is inclusive growth.  

 

Nations which has a vision to grow big should foster their Children and Youth on Character Building to bring out more creativity and innovation which can be the only solution for prosperity.