For most Admin and Facility managers like yours truly, Financial Management is a dreaded exercise that is taken up annually when the Budgeting is around the corner. We struggle with Capex., benchmark with previous year or comparable sites, look at dubious forecast plans shared by the line and then come up with Opex budgets. This is followed by an exercise of convincing the CFO’s office and eventually we get done with it, hoping not to be bothered by it, for another year. What comes naturally for some seems a nightmare for us. However, some basic application of tools and techniques that the finance guys use are immensely helpful for us too in predicting the ROI (Return on Investment) and thus justifying our budgeting strategies. There is definitely more to financial planning than allocating the dough in our kitty to our unit’s needs
Assumptions:
I recall a very old fable which revolves around a saying which says that to ASSUME is to make an ASS of U and ME. But as with the case of most planning, financial planning too depends on the assumptions we make for our own function as well the assumptions that the organization is making keeping the FY ahead. The financial performance of any facility broadly defines how well the facility is performing as a financial asset. It is upto the site management to decide what should constitute a good performance as there no applicable thumb rules here. Primarily, it should sync with the facility function at large as well the financial assumptions and forecasts that the organization is making for itself. One should be very careful in fixing these assumptions as a slight deviation in this stage could lead to a huge delta on the year end performance.
Let us look at 3 tools which are easy to comprehend and deploy that can be great help in our planning:
1. Lowest First Cost Analysis
The lowest first cost approach is merely finding the lowest-priced item that meets your specifications at the time you need it. This approach works best for a narrow set of circumstances like below:
Identical brands and suppliers are available for our need. (Eg: Tissue Papers, Stationery etc)
Availability and Supply of the said material is not a challenge
Substitution of one brand for another doesn’t impact the user and is not infra dependent ( A4 Paper, Air freshener canister)
The maintenance cost or storage cost is minimal or non-existent
In all of the above cases, the lowest first cost strategy is the best choice. However, it is not sufficient for all planning needs. Any need that has a perception based satisfaction can’t be defined for quality and quantity so easily and this strategy won’t function well the moment there are ambiguities in the need specification. That is where people come up with phrases like, for better quality one needs to pay more, etc.
The advantage of this strategy is that it doesn’t usually impact the budgeted expenses adversely. The rate normally rallies around a standard and anomalies are rare. At the same time, the disadvantage is that Life Cycle Cost or Operating Cost on a long term will increase. For example, using the cheapest available A4 paper will be easy on the Operating expense but might result in buying a new printer altogether before the actual Life time of the printer. Buying a slightly better quality paper will help us use the same printer for long and the best quality paper will enhance the printer for much longer.
2. Life Cycle Cost Analysis
Traditionally, Life cycle cost analysis (LCC) is a construction-based decision method, and not an accounting method. There are three major cost categories in a life cycle cost analysis.
1. Initial cost (Cost of acquisition, design, delivery, installation, testing, renovating, relocating, modifying etc. Eg Design cost for a Kitchen Modification and the project cost in commissioning it)
2. Ongoing expenses or what we usually refer to as Operational cost — such as utility, servicing, and maintenance costs that continue as long as the asset is used ( AMC of the kitchen equipment, B check on DG Set etc)
3. One-time future expenses — such as system calibration after commencing operation, and major upgrades or overhauls — that occur infrequently and predictably during the life of the asset ( Software upgrade that we undertake as and when required, Anti-virus up gradation etc)
LCC Analysis accounts for ALL the costs associated with an asset including cost of removal if any, disposal etc. One additional parameter that comes into play in LCC analysis is the aspect of time. Calculating the depreciation where applicable. This approach is hugely helpful when we have the complete utilization forecast. All one needs to do it have a comparable statement of LCC analysis of all available options and the winner will be looking in our face. Predictably, this approach hence is valid for analyzing investments when long-term payback is a major factor. The shorter the asset life, the less useful this method becomes.
When calculating life cycle costs, few factors ought to be considered are:
• Life expectancy of the asset
• Assessment of all costs and discounts, plus tax impact if any
• Capitalization of the costs that are capitalized
• Fair estimate of the inflation and interest rate during the life expectancy of the asset
Because assumptions may vary widely, the best approach is to predict outcomes based on a range, such as an inflation rate of a minimum of 5 percent and a maximum of 8 percent annually.
A great example of effective utilization of LCC analysis is during the installation of an energy management system or a Rain Water Harvest System etc. The cost of an energy management system is added to standard electrical and mechanical equipment costs. To justify the additional cost, the savings that are produced are also quantified and analyzed. Energy management systems and other such products produce cost avoidance or cost savings after the payback period too.
Life cycle costing is also useful for producing documented information about longer-term savings. Most products require some amount of maintenance to operate effectively over the long term. Therefore, such costs must be considered when making a final product decision.
3. Cost-Benefit Analysis
Cost-benefit analysis asks: "Are the benefits of a project worth its costs?" Cost-benefit analysis should be the method of choice if you must compare quantifiable (measurable) parameters with qualitative factors. It is not difficult to see that decisions made on the basis of quantifiable costs or savings (avoided costs) are easier to make. This method is useful when analyzing projects that involve physical improvements to existing infra structure but do not affect the market or asset value of the property as a whole. It can even be used to support trade-offs between cost related and qualitative factors
Not every quantifiable issue relates to cost. For example, specifications for computer systems include many measurable elements that do not relate directly to cost, such as amount of RAM, megabytes of disk space, and the clock speed of a chip etc.
To conduct a numerical comparison of hard and soft costs, you will need to apply relative-weighted numeric values to qualitative factors and to costs. These numbers can be assigned to derive an overall score that indicates how well a given project or proposal fulfills the department or company’s stated objectives.
When you begin any cost-benefit analysis, consider the following issues:
• Specifically, what is the project intended to accomplish?
• What conditions constrain or affect the project?
• What conditions might exist after the project is completed?
• Which conditions are controllable and which are not?
• What performance requirements or time and cost criteria will be used to evaluate effective project performance?
• What is the minimum acceptable level of performance in each category?
Hard Costs and Soft Costs
Hard costs are those associated directly with actual construction, leasing, maintenance, and upkeep. Hard benefits are savings on revenues generated directly from these activities. Soft costs and benefits are those related to the management of construction, leasing, and maintenance and upkeep, such as overhead, fees, and management time. These distinctions are not accounting or budgetary conventions, but may figure prominently in the thinking of executives who may be reviewing the project. As we plan for facilities projects, we should keep in mind that the argument for some costs is more persuasive than for others.
• Most persuasive are hard costs or benefits that can be measured and attributed directly to a specific activity, account, etc
• Also persuasive are hard costs or benefits that can be measured but are not attributed directly to a specific project or customer and therefore are allocated on a prorated basis (for example, overhead costs)
• Less persuasive are tangible but unmeasurable soft costs or savings (for example, projected savings in staff time that cannot be tracked or verified in a practical way)
• Least persuasive are intangible and unmeasurable soft costs or savings (for example, improved quality of service) because evaluations are often subjective or inconsistent
It is more difficult to compare hard (quantitative) costs/savings to soft (qualitative) costs/savings than to compare hard costs and savings to each other. The less measurable something is and the more one mixes bases for evaluation (cost vs. time vs. quality, for example), the more difficult comparison becomes. Consequently, project justifications often present the strongest possible case in cost numbers first and treat other justifications as secondary arguments.
The evaluation process is often structured into three levels:
1. Quantitative vs. quantitative factors
2. Quantitative vs. qualitative factors
3. Qualitative vs. qualitative factors
Facility managers must understand many important financial concepts in order to communicate effectively with senior management. Along with a thorough understanding of the core business, these financial concepts are vital if facility managers are to speak the language of business and gain the confidence of corporate executives as genuine contributors to corporate profitability and well-being.
The article is collection of thoughts from my colleagues, current and old, experiences shared over various forums over the internet and facility management events and other relevant sources like project material, submitted papers etc. Please refer to BOMI International’s course Fundamentals of Facilities management for more details.
Please feel free to use any part or complete article as deemed fit. These thoughts and collation have no copyright whatsoever.
Sunday, September 4, 2011
Thursday, June 23, 2011
Facilities Management: An Overview on few current practices, challenges and trends
Till a few years earlier, lot of companies with advanced maturity in processes and technical capabilities too used to consider facilities management as a spend centre and not a revenue generator. This traditional approach has seen a shift in paradigm when professionals started managing facilities heralding the effect of bench marking and best practice adoption. With considerable savings on costs as well as enhancement of service levels, this view started to change. An emerging trend is the focus on facilities management to make the work place safe, comfortable and productivity focused.
Facilities and buildings that facility managers operate not only contribute to the commercial activity, trading, back-end support, manufacturing etc but also are responsible for a considerable chunk of energy usage and in effect the carbon emissions as well; Another emerging parameter under microscope these days.
A trained resource is a scarcity across the industry spectrum and more so in Facilities management as the function is still nascent stages in lot of industries. We all are aware of lot of trained junior resources quickly graduating to become a Facility heads for smaller sites, resulting in scenarios with simultaneous advantages and disadvantages. While people will have to grow and with efficient leadership, the quality of the function in itself will improve, a semi-trained resource in leadership roles has its own disadvantages.
Training the facility management team has multiple angles to consider. Let us list down a few of them
1. Energy management, emissions, carbon foot print and sustainability
2. Emerging best practices and leveraging common knowledge
3. Legislations, changing statutory requirements and regulations
4. People practices, technology advancements and innovation
When we look at any Facility Management operation, the following 4 tenets are apparent
1. Existing state of the facility, readiness of operational team
2. Transition to and expectation from facility management team
3. Establishing the probable gaps and possible bridges
4. Sustenance and way forward
Each of the above is valid for any facility and their interdependence makes them an intrinsic part of any feasibility study, scoping exercise as well as aspect-impact study that one has to undertake apart from business needs and commercials for a site mobilization, certification and efficiency enhancement exercise.
1. Existing state of the facility, readiness of operational team: Fortunate are those who get to manage a new facility- for a lot of the stringent requirements are added in the design stage itself. When planning facility management for a heritage building or a facility with issues and concerns due to improper planning, it becomes that much more difficult for the facility manager to plan the staffing, identify the skill level required for technicians and deploy them. The concept of retro fitting the older facilities to improve energy efficiency etc. The facility management team’s day to day activities are largely focused on keeping the facility operational, comfortable, productive and safe.
However, there are multiple challenges that the FM teams face in managing the existing facilities:
Challenge 1- Qualified and trained resources- There are very few training programs available for technicians, operators, supervisors and facility managers. While business management programs are aplenty, focused facility management programs are only offered by institutes like IFMI (International Facility Management Institute). Manpower is recruited at entry level with minimal qualification and bulk of the training or operational guidance is imparted through On The Job Trainings (OJT). While few service providers in the realm have formalized these OJT programs with dedicated resources focusing on training, bulk of the workforce is not exposed to education or training in the area. The limited class room or structured training too focuses on broad areas of the subject, and definitely not comprehensive exposure. This historical way of learning on the job is applicable for some industries and functions, but to completely bank on OJT for facility management will lead to higher numbers of untrained workforce which has its own disadvantages. Another emerging trend is the incidence of few vocational training institutes offering short term courses in Housekeeping, office administration etc, but keeping current strength and immediate requirements in view, the outflow from these institutes constitutes a small part of the industry requirement. Adding to this, lot of newer concepts in facility management energy management, water conservation, efficiency enhancement, green building etc require not just a practical-hands-on exposure but a detailed theoretical comprehension of the concepts and the nuances of sustaining the improvements.
Challenge 2- Independent Design, Execution & Operations- Very few organizations have a singular vertical that encompasses the design, projects execution and day-to-day facility management. With diversity in leadership, thought process and investments of resource and time, the objectives end of being different. Current trend of out-sourcing these activities brings in additional complexity. Translation of plan to design specifications, design to drawing and execution and from there transitioning to operations team brings in multiple elements to be closely monitored. If any of these steps are slightly mismanaged, the facilities management team bears the brunt of the user group as well as the management. The facility will not yield its optimum utility if not properly thought through during all these phases.
Challenge 3- Investment Crunches- With the government providing multiple platforms for organizations to invest, like STPI few years ago and SEZ in of late the pressure on investments on existing facilities is huge. Companies are more comfortable investing and creating facilities in the areas that attract the subsidies rather than invest in older facilities. This is understandable from an investor’s point of view as newer facilities need less to maintain, abide by the stringent laws and are good to show-0ff. At the same time, older facilities need continuous investment to keep up to the newer laws and periodic refurbishing to keep up to the changing demands of the users. This creates a daunting task for the facilities team. A funds cut, if has to happen, is most probably in the maintenance budget of an existing building than a projects budget of a newer place.
2. Transition to and expectation from facility management team:
A typical transition or Hand-over as popularly known in the facility circles starts with a snag list preparation by the proposed facility management team. This is usually against an impending backdrop of business pressure to take over and mobilize the start immediately. Unless there is a detailed explanation of various design and architectural elements to the facilities team, and passing on the specifications and details to the facilities team, the hand-over would be incomplete. The facility management team should thoroughly comprehend the complete aspects of construction, electrical, water, HVAC, landscaping, server rooms, rest rooms, along with design drawings, as-built drawings, OEM warranties, attic stock, vendor contacts and locked-in AMCs for a period of at least years.
If a building is transitioned from the projects team with all of the above elements, it facilities team would function with much more efficiency than other wise.
3. Establishing the probable gaps and possible bridges: The 3 main probable gaps lie in resource, technology and process. While shortage of skilled manpower as earlier discussed is a primary resource constraint, in few cases mere meeting the desired numbers of necessary manpower itself becomes a challenge. There aren’t many established training schools or graduating colleges where people can study and get trained to become a facility employee, with CAFM certification being the lone exception. A definitive bridge here is to create more awareness about the career opportunities that lie in this industry and to invite private sector along with government initiation. In India, we already have a very successful model in Hotel and Catering management institutes run by government as well as private institutes since 2 decades that have effectively been supplying necessary manpower to the hotel industry. This model can be used for facility management as well. The gap in the requirement-available technology is already huge and is widening due to the increasing expectations from the facilities- viz., LEED certification, Green Building certification, conservation, carbon foot print reduction etc. A deeper insight into using the technologies from manufacturing industries with regards to quality and safety, IT and ITES with regards to CMMI etc and Food industry with regards to HACCP etc will definitely help the facility management industry in general. The gap in process strengthening is due to a self defeating policy that facility management teams adopt. In overlooking the processes and adapting short cut methods, the practicing facility managers add their bit in depleting the life, aesthetics and efficiency of the facility. Processes bring in consistency, predictability and safety.
4. Sustenance and way forward: The facility management function will only become stronger and better managed by professionals in future. This of course necessitates lot of combined effort by the service providers, facility managers, property owners and the real estate industry as well.
a. Identifying the areas of improvement and opportunities for training intervention in all aspects of facility management and bringing in professional and education into the function
b. Use the collective experience of the human resources. With collective experience which is immense in value, new entrants can be trained and existing resources can attend refresher sessions
c. Get the government attention into the industry and seek clarity in the legislation (Power conversion, carbon foot print advantages, water neutral exercise, cGMP training etc) and attract subsidies for facility management education
d. Popularizing certification courses from IFMA and other authorized institutions
e. Creating a platform for sharing knowledge, experience and best practice sharing
f. Documentation for archival and process creation
Finale:
The function has immense potential. The practicing managers only need to get networked and share the knowledge, practices and experiences.
My sincere thanks to IFMA, FM Zone, MMG Worldwide, Paddy Menon, Sunil V, KN Rajan for inspiring me to collate common thoughts and put together this article.
The article is collection of thoughts from my colleagues, current and old, experiences shared over various forums over the internet and facility management events and other relevant sources like project material, submitted papers etc.
Please feel free to use any part or complete article as deemed fit. These thoughts and collation have no copyright whatsoever.
Facilities and buildings that facility managers operate not only contribute to the commercial activity, trading, back-end support, manufacturing etc but also are responsible for a considerable chunk of energy usage and in effect the carbon emissions as well; Another emerging parameter under microscope these days.
A trained resource is a scarcity across the industry spectrum and more so in Facilities management as the function is still nascent stages in lot of industries. We all are aware of lot of trained junior resources quickly graduating to become a Facility heads for smaller sites, resulting in scenarios with simultaneous advantages and disadvantages. While people will have to grow and with efficient leadership, the quality of the function in itself will improve, a semi-trained resource in leadership roles has its own disadvantages.
Training the facility management team has multiple angles to consider. Let us list down a few of them
1. Energy management, emissions, carbon foot print and sustainability
2. Emerging best practices and leveraging common knowledge
3. Legislations, changing statutory requirements and regulations
4. People practices, technology advancements and innovation
When we look at any Facility Management operation, the following 4 tenets are apparent
1. Existing state of the facility, readiness of operational team
2. Transition to and expectation from facility management team
3. Establishing the probable gaps and possible bridges
4. Sustenance and way forward
Each of the above is valid for any facility and their interdependence makes them an intrinsic part of any feasibility study, scoping exercise as well as aspect-impact study that one has to undertake apart from business needs and commercials for a site mobilization, certification and efficiency enhancement exercise.
1. Existing state of the facility, readiness of operational team: Fortunate are those who get to manage a new facility- for a lot of the stringent requirements are added in the design stage itself. When planning facility management for a heritage building or a facility with issues and concerns due to improper planning, it becomes that much more difficult for the facility manager to plan the staffing, identify the skill level required for technicians and deploy them. The concept of retro fitting the older facilities to improve energy efficiency etc. The facility management team’s day to day activities are largely focused on keeping the facility operational, comfortable, productive and safe.
However, there are multiple challenges that the FM teams face in managing the existing facilities:
Challenge 1- Qualified and trained resources- There are very few training programs available for technicians, operators, supervisors and facility managers. While business management programs are aplenty, focused facility management programs are only offered by institutes like IFMI (International Facility Management Institute). Manpower is recruited at entry level with minimal qualification and bulk of the training or operational guidance is imparted through On The Job Trainings (OJT). While few service providers in the realm have formalized these OJT programs with dedicated resources focusing on training, bulk of the workforce is not exposed to education or training in the area. The limited class room or structured training too focuses on broad areas of the subject, and definitely not comprehensive exposure. This historical way of learning on the job is applicable for some industries and functions, but to completely bank on OJT for facility management will lead to higher numbers of untrained workforce which has its own disadvantages. Another emerging trend is the incidence of few vocational training institutes offering short term courses in Housekeeping, office administration etc, but keeping current strength and immediate requirements in view, the outflow from these institutes constitutes a small part of the industry requirement. Adding to this, lot of newer concepts in facility management energy management, water conservation, efficiency enhancement, green building etc require not just a practical-hands-on exposure but a detailed theoretical comprehension of the concepts and the nuances of sustaining the improvements.
Challenge 2- Independent Design, Execution & Operations- Very few organizations have a singular vertical that encompasses the design, projects execution and day-to-day facility management. With diversity in leadership, thought process and investments of resource and time, the objectives end of being different. Current trend of out-sourcing these activities brings in additional complexity. Translation of plan to design specifications, design to drawing and execution and from there transitioning to operations team brings in multiple elements to be closely monitored. If any of these steps are slightly mismanaged, the facilities management team bears the brunt of the user group as well as the management. The facility will not yield its optimum utility if not properly thought through during all these phases.
Challenge 3- Investment Crunches- With the government providing multiple platforms for organizations to invest, like STPI few years ago and SEZ in of late the pressure on investments on existing facilities is huge. Companies are more comfortable investing and creating facilities in the areas that attract the subsidies rather than invest in older facilities. This is understandable from an investor’s point of view as newer facilities need less to maintain, abide by the stringent laws and are good to show-0ff. At the same time, older facilities need continuous investment to keep up to the newer laws and periodic refurbishing to keep up to the changing demands of the users. This creates a daunting task for the facilities team. A funds cut, if has to happen, is most probably in the maintenance budget of an existing building than a projects budget of a newer place.
2. Transition to and expectation from facility management team:
A typical transition or Hand-over as popularly known in the facility circles starts with a snag list preparation by the proposed facility management team. This is usually against an impending backdrop of business pressure to take over and mobilize the start immediately. Unless there is a detailed explanation of various design and architectural elements to the facilities team, and passing on the specifications and details to the facilities team, the hand-over would be incomplete. The facility management team should thoroughly comprehend the complete aspects of construction, electrical, water, HVAC, landscaping, server rooms, rest rooms, along with design drawings, as-built drawings, OEM warranties, attic stock, vendor contacts and locked-in AMCs for a period of at least years.
If a building is transitioned from the projects team with all of the above elements, it facilities team would function with much more efficiency than other wise.
3. Establishing the probable gaps and possible bridges: The 3 main probable gaps lie in resource, technology and process. While shortage of skilled manpower as earlier discussed is a primary resource constraint, in few cases mere meeting the desired numbers of necessary manpower itself becomes a challenge. There aren’t many established training schools or graduating colleges where people can study and get trained to become a facility employee, with CAFM certification being the lone exception. A definitive bridge here is to create more awareness about the career opportunities that lie in this industry and to invite private sector along with government initiation. In India, we already have a very successful model in Hotel and Catering management institutes run by government as well as private institutes since 2 decades that have effectively been supplying necessary manpower to the hotel industry. This model can be used for facility management as well. The gap in the requirement-available technology is already huge and is widening due to the increasing expectations from the facilities- viz., LEED certification, Green Building certification, conservation, carbon foot print reduction etc. A deeper insight into using the technologies from manufacturing industries with regards to quality and safety, IT and ITES with regards to CMMI etc and Food industry with regards to HACCP etc will definitely help the facility management industry in general. The gap in process strengthening is due to a self defeating policy that facility management teams adopt. In overlooking the processes and adapting short cut methods, the practicing facility managers add their bit in depleting the life, aesthetics and efficiency of the facility. Processes bring in consistency, predictability and safety.
4. Sustenance and way forward: The facility management function will only become stronger and better managed by professionals in future. This of course necessitates lot of combined effort by the service providers, facility managers, property owners and the real estate industry as well.
a. Identifying the areas of improvement and opportunities for training intervention in all aspects of facility management and bringing in professional and education into the function
b. Use the collective experience of the human resources. With collective experience which is immense in value, new entrants can be trained and existing resources can attend refresher sessions
c. Get the government attention into the industry and seek clarity in the legislation (Power conversion, carbon foot print advantages, water neutral exercise, cGMP training etc) and attract subsidies for facility management education
d. Popularizing certification courses from IFMA and other authorized institutions
e. Creating a platform for sharing knowledge, experience and best practice sharing
f. Documentation for archival and process creation
Finale:
The function has immense potential. The practicing managers only need to get networked and share the knowledge, practices and experiences.
My sincere thanks to IFMA, FM Zone, MMG Worldwide, Paddy Menon, Sunil V, KN Rajan for inspiring me to collate common thoughts and put together this article.
The article is collection of thoughts from my colleagues, current and old, experiences shared over various forums over the internet and facility management events and other relevant sources like project material, submitted papers etc.
Please feel free to use any part or complete article as deemed fit. These thoughts and collation have no copyright whatsoever.
Monday, March 22, 2010
My post on Facility Professionals India
Future of Facility Management- 5 things a facility manager should know!
The Facility Management industry has moved ahead from basic operations management to more evolved practices and principles. The future holds interesting challenges and he who can innovate will excel.For me the top 5 are as follows:
a) Sustainability Practices covering all aspects of our operations. (Righ from soft services and Transport to Facility Planning etc)
b) Better Energy Management, Alternate energy modes
c) Multi- tasking with focus on nuances of the role specilization
d) More Yield management from all resources
e) Ability to mould and custom fix the services basis the requirements from global optima to local deliveries
The Facility Management industry has moved ahead from basic operations management to more evolved practices and principles. The future holds interesting challenges and he who can innovate will excel.For me the top 5 are as follows:
a) Sustainability Practices covering all aspects of our operations. (Righ from soft services and Transport to Facility Planning etc)
b) Better Energy Management, Alternate energy modes
c) Multi- tasking with focus on nuances of the role specilization
d) More Yield management from all resources
e) Ability to mould and custom fix the services basis the requirements from global optima to local deliveries
Wednesday, March 17, 2010
One of the Many Vs One of the few: The Dilemma of Choice
I was reading and kind of digging up some articles on CHOICE and Its Implications. We are experiencing an array of choices in almost everything that we do. Right from the moment we start our day, we have a choice. There are scores of toothpastes and toilet rolls to start with and I can’t even start mentioning the choice we have in shampoos and shower gels. It’s unimaginable. Choice is good in a way. Choice gives us freedom to choose from the available options. Freedom is good, it is valuable, liberal and each of us gets to do on our own and no one else does it on our behalf. Then, how do we exercise freedom. The way to maximize freedom is to maximize choice. The more choice we have, the more freedom we have to choose from the available options. Well, is it? Does more choice always mean more freedom and even if it is, is it always good? Let us see..
We shop regularly at Vijetha supermarket. The first reason we go there is because, the cashiers are efficient. It is crowded and in the first week of each month, the rush is huge. We still go there, because we get most of what we want there under one roof. There is a huge choice in all segments. Now, we are in the supermarket and we are starting with our list. Item 1, Toothpaste. There are 24 varieties of different toothpastes. Wow. We know what we want in toothpastes. We pick up our regular brand and walk on. The options were many, but choice was easy. We have been buyi9ng this brand from so many years. My tooth are still intact and no reason to change now. I briefly recall few ads, where toothpaste is changing a guy’s life style but we will think about it later. Item 2, Soaps. There are 44 varieties of soaps. Choice is easy here too. Pick up and walk on. We enter the Food Section after some pondering and choosing some new and rest old brands with other stuff. Here we are, Siri wanted to buy a Sandwich Spread. There are 12 varieties not considering the Olive Oil, Non-Fat versions within each variety. Siri starts off asking, “Which one is good?”.
“I amn’t sure, let’s go for this.”
“Ok, you think this is good?”
“I don’t know. Let’s try this. If it doesn’t work out we shall try the other one next time. Or, may be that is better, as it has virgin oil.”
“How about this one, it is recommended by Karen Anand.”
“Or this, this has chef Sanjeev Kapoor’s picture on it. This gotta be good.”
“You know what. Let’s just chuck it. We will see next time. For now, let’s manage with honey and cheese”.
You see what’s happening. The choice is acting against the very reason it exists.
Let us look at another scenario. There was a time, when phone meant a heavy instrument in the corner of our drawing room, which worked when it felt like. The only choice we had was to buy a cordless instrument or not. That’s it. Thanks to PV Narasimha Rao, Sam Pitroda and Ambani, we have a completely different picture of a phone now. Phones do everything now. Talk, Message, Email, click snaps, blog, read books and papers, upload, download, what not. We have the choice of Dual SIM, dual standby, one stand by etc. Phones with track wheel, Menu ball. The only wheels I knew were on vehicles and balls were meant to play with. Phones have so many features that it confuses us. I am scared whenever I have to change my phone. I am scared at the huge options I would have and the fact that whatever choice I would make, there would be a phone which will be better in some important aspect of utility for me or the other scares me. It might sound funny, but it is true. Choice scares me some times. Sometime back, when we were checking with my mom, as per what phone she wants. She said, “I want a phone which doesn’t do too much.” People don’t want confusing choices.
Coming to more serious things, in most aspects of life as well, this explosion of choice is true. You go to a bank seeking a home loan. The banker tells you, you can go for Loan A which has these advantages and this disadvantages or Loan B which has these advantages and these risks. You are not sure. You would say, “What do I go for?” The banker says, “Sir, Loan A has this Pros and Cons and Loan B has these. What do you want to go for?” You are confused. You would say, “What would you do, if you were me.” Banker Says”, But, I am not you. So you choose.” You are more confused. You seek help. Then you are referred to a Financial Advisor, who is apparently a Subject Matter Expert. You are seated comfortably, there is a computer in front of the Advisor, he refers to your age, salary, projected salary, current and future liabilities, family size, cars, life style, eating habits, choice of burger, favorite heroine, blogs you read etc etc and finally draws up an advice for you. And Says, “Mr. Dumb, you could go for A, but it would make you bleed, or you could go for B which will make you lose blood.” That’s for a loan.
Work. The only choice when I started off my career was between taking my morning tea break at 1000 hrs or 1015 hrs. Period. Rest all, including my lunch time, lunch menu; bio-breaks were all scheduled. No choice, still happy. And now, we have a choice. Choice of working from a place other than my working station, working from home, working with mobile phone, working by monitoring my reportees. We could choose to work, every minute of every day from any corner of the country for that matter any corner of the globe as long as your datacard works or blackberry works for that matter. What does it mean, it means that one has to continuously make a choice to work or not work while not working or working. When you are in a theatre watching a movie, you can choose to quietly open the mail box and check for any update on the Office situation; while enjoying a dinner with family, you can accidentally glance at the Inbox and more dangerously, carry your blackberry to your bathroom to make sure few morning messages and mails can go on time to keep your team on track. Phew. You see, you have a choice. Even if you are not directly composing a mail, while in the movie / restaurant etc you are atleast asking yourself the question, should I answer this call now, should I answer this sms now? You have a choice. You can respond or you can choose not to respond and the fact that there are costs and implications to not responding immediately is a different story.
Contd....
We shop regularly at Vijetha supermarket. The first reason we go there is because, the cashiers are efficient. It is crowded and in the first week of each month, the rush is huge. We still go there, because we get most of what we want there under one roof. There is a huge choice in all segments. Now, we are in the supermarket and we are starting with our list. Item 1, Toothpaste. There are 24 varieties of different toothpastes. Wow. We know what we want in toothpastes. We pick up our regular brand and walk on. The options were many, but choice was easy. We have been buyi9ng this brand from so many years. My tooth are still intact and no reason to change now. I briefly recall few ads, where toothpaste is changing a guy’s life style but we will think about it later. Item 2, Soaps. There are 44 varieties of soaps. Choice is easy here too. Pick up and walk on. We enter the Food Section after some pondering and choosing some new and rest old brands with other stuff. Here we are, Siri wanted to buy a Sandwich Spread. There are 12 varieties not considering the Olive Oil, Non-Fat versions within each variety. Siri starts off asking, “Which one is good?”.
“I amn’t sure, let’s go for this.”
“Ok, you think this is good?”
“I don’t know. Let’s try this. If it doesn’t work out we shall try the other one next time. Or, may be that is better, as it has virgin oil.”
“How about this one, it is recommended by Karen Anand.”
“Or this, this has chef Sanjeev Kapoor’s picture on it. This gotta be good.”
“You know what. Let’s just chuck it. We will see next time. For now, let’s manage with honey and cheese”.
You see what’s happening. The choice is acting against the very reason it exists.
Let us look at another scenario. There was a time, when phone meant a heavy instrument in the corner of our drawing room, which worked when it felt like. The only choice we had was to buy a cordless instrument or not. That’s it. Thanks to PV Narasimha Rao, Sam Pitroda and Ambani, we have a completely different picture of a phone now. Phones do everything now. Talk, Message, Email, click snaps, blog, read books and papers, upload, download, what not. We have the choice of Dual SIM, dual standby, one stand by etc. Phones with track wheel, Menu ball. The only wheels I knew were on vehicles and balls were meant to play with. Phones have so many features that it confuses us. I am scared whenever I have to change my phone. I am scared at the huge options I would have and the fact that whatever choice I would make, there would be a phone which will be better in some important aspect of utility for me or the other scares me. It might sound funny, but it is true. Choice scares me some times. Sometime back, when we were checking with my mom, as per what phone she wants. She said, “I want a phone which doesn’t do too much.” People don’t want confusing choices.
Coming to more serious things, in most aspects of life as well, this explosion of choice is true. You go to a bank seeking a home loan. The banker tells you, you can go for Loan A which has these advantages and this disadvantages or Loan B which has these advantages and these risks. You are not sure. You would say, “What do I go for?” The banker says, “Sir, Loan A has this Pros and Cons and Loan B has these. What do you want to go for?” You are confused. You would say, “What would you do, if you were me.” Banker Says”, But, I am not you. So you choose.” You are more confused. You seek help. Then you are referred to a Financial Advisor, who is apparently a Subject Matter Expert. You are seated comfortably, there is a computer in front of the Advisor, he refers to your age, salary, projected salary, current and future liabilities, family size, cars, life style, eating habits, choice of burger, favorite heroine, blogs you read etc etc and finally draws up an advice for you. And Says, “Mr. Dumb, you could go for A, but it would make you bleed, or you could go for B which will make you lose blood.” That’s for a loan.
Work. The only choice when I started off my career was between taking my morning tea break at 1000 hrs or 1015 hrs. Period. Rest all, including my lunch time, lunch menu; bio-breaks were all scheduled. No choice, still happy. And now, we have a choice. Choice of working from a place other than my working station, working from home, working with mobile phone, working by monitoring my reportees. We could choose to work, every minute of every day from any corner of the country for that matter any corner of the globe as long as your datacard works or blackberry works for that matter. What does it mean, it means that one has to continuously make a choice to work or not work while not working or working. When you are in a theatre watching a movie, you can choose to quietly open the mail box and check for any update on the Office situation; while enjoying a dinner with family, you can accidentally glance at the Inbox and more dangerously, carry your blackberry to your bathroom to make sure few morning messages and mails can go on time to keep your team on track. Phew. You see, you have a choice. Even if you are not directly composing a mail, while in the movie / restaurant etc you are atleast asking yourself the question, should I answer this call now, should I answer this sms now? You have a choice. You can respond or you can choose not to respond and the fact that there are costs and implications to not responding immediately is a different story.
Contd....
Saturday, February 27, 2010
Wednesday, February 17, 2010
My post on India Leadership Network; Why Hasn't India produced an Apple, Google or Microsoft by James Williams
Leadership:
My post on India Leadership Network:
India & innovation: Why hasn’t India produced an Apple, Google or Microsoft? By James Williams on India Leadership Network
Great Discussion guys and really glad to see the action!
Well, the advancement in multitude of areas in US didn't happen by accident. There is an environment that nurtures creative thinking; there are umpteen platforms that transformed ideas to actions. .. Slightly digressing from the discussion, I was reading a book(OUTLIERS by Malcolm Gladwell), which elucidates how Bill Gates got umpteen hours of practice on computers by virtue of being where he was (home town, science centre etc) and how kids born in certain year got to be better footballers then ones younger or older to them (by virtue of being exposed to certain rules etc). Likewise ideas in US are in certain environment that automatically give them better atmosphere to be looked at, tried and tested. In India, we are still struggling for basic needs. Yes, we have our own Infosys, Wipro, TCS et al, but largely we are still struggling in few places. We are a patches of excellence phenomenon in terms of infrastructure, education, health care etc etc.. Till such time there is some parity across the country, w will have such gaps between cities and rural areas.
My post on India Leadership Network:
India & innovation: Why hasn’t India produced an Apple, Google or Microsoft? By James Williams on India Leadership Network
Great Discussion guys and really glad to see the action!
Well, the advancement in multitude of areas in US didn't happen by accident. There is an environment that nurtures creative thinking; there are umpteen platforms that transformed ideas to actions. .. Slightly digressing from the discussion, I was reading a book(OUTLIERS by Malcolm Gladwell), which elucidates how Bill Gates got umpteen hours of practice on computers by virtue of being where he was (home town, science centre etc) and how kids born in certain year got to be better footballers then ones younger or older to them (by virtue of being exposed to certain rules etc). Likewise ideas in US are in certain environment that automatically give them better atmosphere to be looked at, tried and tested. In India, we are still struggling for basic needs. Yes, we have our own Infosys, Wipro, TCS et al, but largely we are still struggling in few places. We are a patches of excellence phenomenon in terms of infrastructure, education, health care etc etc.. Till such time there is some parity across the country, w will have such gaps between cities and rural areas.
Thursday, January 7, 2010
Our Lives Changed with his arrival
Our Lives Changed with his arrival !
Whenever someone told me that something has dramatically changed their lives overnight, I used to wonder how it would be possible for things to change so suddenly. Sometimes, I secretly wished to stumble on something that would change my life so radically. Little was I aware that it would happen when Siri and I finally chose to give-in to our temptation and brought home Snoopy- our 9 week old Dachshund.
We thought we were ready to adopt him, and against my wish to pay for it, I shelled out a price. I was of the opinion that it is unfair to fix a price for a life form. But, someone meant only business and I was apprehensively cheerful when I relented; Apprehensive that I am paying against my belief, Cheerful as we are finally getting the pup. We drove after a long tiring day at work and by the time we reached the busy central business district of our city, the traffic was at its worse. We somehow made to the landmark and waited. I was hungry and tired. I guess, my usually morbid facial expression changed from barely acceptable to worse to unbearable during the wait, when Siri offered to step out and get something for me to eat. I quickly agreed, any deviation from the status-quo of the wait was fine with me. She went out and I was about to call her back and tell her that we should do it some other time as the day was getting too much for me. I just wished to get back home and hit the sack. The pet shop owner had just then showed up. She returned with a roll (apparently the last one on offer) and popcorn. We drove around to his shop, waited in the parking to gobble the roll and stepped into his shop. He showed us two black and tan Dachshunds. We had earlier zeroed in on this breed, as it was ideal for our apartment and a bigger dog would be finding our place too small to grow in. Siri was more inclined to a lab, I was pushing for a Boxer. We settled for a dashund. I guess, for Siri, anything other than a boxer was fine. They looked cute and small. Siri was excited and said “Yes” – but with a slight hesitation. She preferred a non-black one. With hunger subsiding slightly, I could focus on the pups at hand. The black ones looked fair to me. The shop guy then brought in the full tan one; slightly older than the other two, but definitely looking more alert. She was scared for sure, but there was a certain air of confidence in his gait and demeanor. Siri’s eyes said she found what she wanted. I needn’t have to say anything. We paid up, picked him and started back. Through the drive back home, Siri was constantly saying soothing things to the pup, reassuring and comforting. We reached home after picking up the advised baby food packs and Siri embarked to prepare a quick dinner. I fed the pup and he was slowly moving around, still slightly tentative. We tried to put him to sleep in a crate-converted into a kennel. New place, absence of his siblings and mom and both us strangers looking at everything he does with a curious eye, might have put him in slight discomfort. May be he was curious too, to see what we both are up to. He refused to sleep immediately and kept sounding his disapproval of the kennel; the bed made of newspapers and may be the light we kept on, to prevent us from stepping on him in the dark. He slept sporadically through the night, keeping me awake throughout. He relieved himself few times and I was grumbling to clean up his acts. Come morning, he has started to explore. This expedition to look around our home is instrumental in us calling him by his current name. He is pretty short, shorter than one would assume a Dachshund to be; and with an elongated body he started flowing around to all corners of the home. He would wait at a stop, snoop around and then presume moving again. He spent more time registering new scents and the environment. He ‘marked’ a lot of places and Siri & I had to do a lot of cleaning, but it was fun. He got bolder and ventured into other corners of the home and surely into all corners of our hearts.
Days were passing quickly. We continued with our hectic lives and all our actions at home have a singular purpose now- Snoopy’s induction and home breaking. He is smart, quick learner and uses all forms of facial / vocal expressions to get his way. He is charming, sulking, obedient and naughty as he chooses to be. In almost all, well, in all cases he gets his way. Siri tries to teach him some manners and he tries to teach us some games. Not sure who is more successful. We both are speaking in hushed voices when he is asleep, fearing disturbing him. We are more careful with what’s lying on floor lest he bites into it. We are awake earlier than before and hitting bed late so that he gets his night sleep, non-stop. No more TV, no more Radio. Our whole life in the last week revolved around him. I am sure, we haven’t finished yet as this would continue for some time, till such time we three get used to each other. In a strange way, he brought Siri and I closer.
I was eager to tell my colleagues on the day-after his arrival, that we owned a pup. I stopped myself, thinking “Not just yet. Let me give it a week before announcing to all”. I was right in not announcing to all that we owned a pup, Snoopy. In fact, it is the other way round. A pup, Snoopy owned both of us. Our lives literally changed overnight.
Yes, life can change overnight. It did for us.
Whenever someone told me that something has dramatically changed their lives overnight, I used to wonder how it would be possible for things to change so suddenly. Sometimes, I secretly wished to stumble on something that would change my life so radically. Little was I aware that it would happen when Siri and I finally chose to give-in to our temptation and brought home Snoopy- our 9 week old Dachshund.
We thought we were ready to adopt him, and against my wish to pay for it, I shelled out a price. I was of the opinion that it is unfair to fix a price for a life form. But, someone meant only business and I was apprehensively cheerful when I relented; Apprehensive that I am paying against my belief, Cheerful as we are finally getting the pup. We drove after a long tiring day at work and by the time we reached the busy central business district of our city, the traffic was at its worse. We somehow made to the landmark and waited. I was hungry and tired. I guess, my usually morbid facial expression changed from barely acceptable to worse to unbearable during the wait, when Siri offered to step out and get something for me to eat. I quickly agreed, any deviation from the status-quo of the wait was fine with me. She went out and I was about to call her back and tell her that we should do it some other time as the day was getting too much for me. I just wished to get back home and hit the sack. The pet shop owner had just then showed up. She returned with a roll (apparently the last one on offer) and popcorn. We drove around to his shop, waited in the parking to gobble the roll and stepped into his shop. He showed us two black and tan Dachshunds. We had earlier zeroed in on this breed, as it was ideal for our apartment and a bigger dog would be finding our place too small to grow in. Siri was more inclined to a lab, I was pushing for a Boxer. We settled for a dashund. I guess, for Siri, anything other than a boxer was fine. They looked cute and small. Siri was excited and said “Yes” – but with a slight hesitation. She preferred a non-black one. With hunger subsiding slightly, I could focus on the pups at hand. The black ones looked fair to me. The shop guy then brought in the full tan one; slightly older than the other two, but definitely looking more alert. She was scared for sure, but there was a certain air of confidence in his gait and demeanor. Siri’s eyes said she found what she wanted. I needn’t have to say anything. We paid up, picked him and started back. Through the drive back home, Siri was constantly saying soothing things to the pup, reassuring and comforting. We reached home after picking up the advised baby food packs and Siri embarked to prepare a quick dinner. I fed the pup and he was slowly moving around, still slightly tentative. We tried to put him to sleep in a crate-converted into a kennel. New place, absence of his siblings and mom and both us strangers looking at everything he does with a curious eye, might have put him in slight discomfort. May be he was curious too, to see what we both are up to. He refused to sleep immediately and kept sounding his disapproval of the kennel; the bed made of newspapers and may be the light we kept on, to prevent us from stepping on him in the dark. He slept sporadically through the night, keeping me awake throughout. He relieved himself few times and I was grumbling to clean up his acts. Come morning, he has started to explore. This expedition to look around our home is instrumental in us calling him by his current name. He is pretty short, shorter than one would assume a Dachshund to be; and with an elongated body he started flowing around to all corners of the home. He would wait at a stop, snoop around and then presume moving again. He spent more time registering new scents and the environment. He ‘marked’ a lot of places and Siri & I had to do a lot of cleaning, but it was fun. He got bolder and ventured into other corners of the home and surely into all corners of our hearts.
Days were passing quickly. We continued with our hectic lives and all our actions at home have a singular purpose now- Snoopy’s induction and home breaking. He is smart, quick learner and uses all forms of facial / vocal expressions to get his way. He is charming, sulking, obedient and naughty as he chooses to be. In almost all, well, in all cases he gets his way. Siri tries to teach him some manners and he tries to teach us some games. Not sure who is more successful. We both are speaking in hushed voices when he is asleep, fearing disturbing him. We are more careful with what’s lying on floor lest he bites into it. We are awake earlier than before and hitting bed late so that he gets his night sleep, non-stop. No more TV, no more Radio. Our whole life in the last week revolved around him. I am sure, we haven’t finished yet as this would continue for some time, till such time we three get used to each other. In a strange way, he brought Siri and I closer.
I was eager to tell my colleagues on the day-after his arrival, that we owned a pup. I stopped myself, thinking “Not just yet. Let me give it a week before announcing to all”. I was right in not announcing to all that we owned a pup, Snoopy. In fact, it is the other way round. A pup, Snoopy owned both of us. Our lives literally changed overnight.
Yes, life can change overnight. It did for us.
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