Tuesday, March 11, 2014

Ravi Matthai's Jawaja Experiment

Jawaja Project of Ravi Matthai
T. V. Rao
(a short version of this appeared in IIMA Alumnus)

Jawaja started as a project in Educational Innovations in Rajasthan and not a Rural Development Project. Eventually it got to be known as a Rural Development Project and Ravi (Matthai) did not object to it as the “Rural Development Group” at IIMA started taking interest in it four years after the project was initiated and they worked closely with Ravi. In my view it still is an Education project and it makes a lot of difference how you view it. I give below a little bit of history to put things in the right perspective before the memory is lost.
After Ravi stepped out as Director, he was interested in perusing professionalization of Management to Education sector. I was recruited to work in this sector. The Education Systems Unit was formed at IIMA in 1973 with Ravi Matthai, Udai Pareek and T. V. Rao as members and Udai Pareek as coordinator. Ravi and Udai had their own ideas of Professionalising management of education. I thought they meant to make education systems more relevant, innovative, define their goals properly and achieve them well with the involvement of all faculty and perhaps using the lessons from managing IIMA which by then was a great success story.
The team of the three of us deliberated for a few months about the work we should be doing in Education and identified the following priorities:
1.       To work with a University and explore professionalising the Management of the University
2.       To work with a college, a school or other educational institutions
3.       To work with a state department of Education and initiate innovations.

For the Universities,  we were asked by the then newly formed Gujarat Agricultural University (V. R. Mehta Vice Chancellor invited us) to help them to study their decision making systems and organizational structure and suggest mechanisms to make it more integrated. GAU was formed with merging of three campuses and each campus had a Director campus and there were many issues of integration. The work went on for nearly two years and some small experiments were done and this was followed by MPKV Agricultural University in Maharashtra. The MPKV project was done by Udai, Ravi, SP Agarwal and Ranjit Gupta. The details of our work in both the Universities are given in the book on Management Processes in Universities by Ravi Matthai, Udai Pareek and T. V. Rao (Oxford & IBH).
For colleges we did some work with St. Xavier’s college in preparing themselves for autonomy which they did not get until many years later and the project had to be dropped after some initial work. We also organised a program on Institution Building in Education and research attended by Kamla, Yash Pal, Alag, Nayudamma, Ishwar, Dharni Sinha and many others. The book is published by AIMA. We also started a program for Heads of Institutions on “Managing Change in Higher Education”. Ravi was also helping NCL, Pune and NID at this time. We did a self- renewal workshop for Sanawar School and also shared with the Indian Public Schools Association. Shomie Das actively promoted this work.
It was the third type of work that lead to Jawaja project years later. We were looking for people from any state government to invite us to undertake this work. The three of us were invited in 1974 to attend a meeting at the Asian Institute of Educational Planning and Administration (now known as NIEPA University, Ministry of HRD) a New Delhi sponsored by UNESCO. The same workshop was also being attended by Mrs. Chitra Naik then Director of Education in Maharashtra and Anil Bordia Joint Secretary Education,  Ministry of Education, New Delhi.  Ravi and Udai knew all these people and expressed their desire to work with a State department. We had a meeting with J. P. Naik, Anil Bordia, Chitra Naik and the three of us to discuss the plan of action. The meeting took place in Connaught place in Nirulla Restaurant over lunch as we had to go out from the seminar for the discussions. During the meeting Mrs. Naik offered Maharashtra as a place for our work. We did not know what exactly we wanted to do but merely said we like to assist in professionalising management through some innovations. It was during this lunch Anil Bordia offered that Rajasthan is a ripe place for our work . As there is already a “High Power Committee” in education with the Minister of Education as Chairman and they have already submitted a report of educational reforms in Rajasthan and there is a lot of scope for innovations in Rajasthan. He suggested that he can get the Government of Rajasthan to extend all support and if we can study it and help them implement it will meet our objective and the State department’s. J P Naik (member Secretary, ICSSR) offered to support it as a Research Project.  The meeting ended with the agreement that the work will be done in Rajasthan and the task will be to help the government of Rajasthan to implement the High Power committee report and the project will be called as “educational Innovations in Rajasthan.” A steering Committee was also formed with Ravi, Udai, T. V. Rao, J. P. Naik, Chitra Naik, Anil Bordia, Inderjit Khanna (Director Education) at that time to keep meeting once in a while and review the progress.
A sum of Rupees 50,000 was sanctioned by ICSSR to the project “Educational Innovations in Rajasthan” to meet the travel and living expenses of the Education Systems Unit form IIMA with Ravi Matthai as the Project Director.
We all met again in Delhi first and again in Jaipur to begin the work. The High power committee identified many issues which are still issues: these included low school enrolment and high drop outs, poor enrolment of girls, location and up gradation of schools, teacher transfers and transfer policies, quality of teachers and teaching, supervision and guidance to schools by educational administrators etc. After studying the report we identified the school drop outs and quality of education as major area. The three of us chose the Ajmer and Jaipur districts of Rajasthan to understand the situation.  We interviewed the top level Administrators and also visited many schools and villages. We concluded that the educational administrators had little time to guide the teachers as they are mostly busy in administration and particularly teacher transfers and appointments and rarely visited the schools to see what is happening. We also discovered that the schools are not seen as places of relevance and villagers questioned the kind of education given to the children. In fact they said that school education the way it was being given was responsible for the unemployment as their wards who went to school stopped working in the farms and also cannot get any jobs. We concluded that if school enrolment has to be improved as desired by the High Power committee the education and especially what is being taught has to be made more relevant.
We worked out a three pronged strategy to help high power committee recommendations implemented. First was to release the administrative burden of the Educational administrators by forming right policies and the use of Technology. Prof. T. P. Rama Rao and I worked on developing a computer model for teacher transfers and also for location of schools. The Dharampur Project experience came in handy for location of schools.  The Minister of Education Rajasthan even visited IIMA to see the Dhrampur model and understand how teacher transfers through computes can ease the administrative burden. Of course the government may not have been convinced as perhaps using computerised (MIS)  for teacher transfers is not desirable as it is losing control over teacher transfers. We in fact explained that every teacher transfer is accompanied by three to four unnecessary transfers due to limited and faulty MIS. This remained only as en experience and the reports are still available in IIMA of the two projects.
We were set out to turn and study three districts of Rajasthan but we got a clear picture after a tour of Ajmer district and Jaipur City. We did not even get to tour the other districts.
Ravi said that education has become irrelevant for the villagers. It has to be made more relevant and our  work should be to demonstrate how to make education more relevant to people in rural areas. It is this issue that has led to a series of other questions. Ravi also felt that to make it relevant we have to identify local resources and create value addition in ways that the people can experience the same. It has to be done by and through the education department. We felt that this cannot be done by mere recommendations to the government as they already have plenty of them but through demonstration. We should demonstrate to them how to identify local resources, how to add value and how to make education linked to economic activity.  Ajmer was chosen to demonstrate this. I still remember Ravi making a comment: We will demonstrate this in Ajmer District in six months and extend it to the remaining three districts in three years and leave it for the Government to extend it to the rest of the state. I was too young to have any views on this plan. It was an experience to work with Ravi and I used to hear him and watch with admiration what he is  trying to do.
After touring round Ajmer district we chose the Jawaja block for the following reasons: it is backward and at the same time had some resources like agriculture (tomatoes used to be sold at Rs 2.5 a basket of some 5 to 10 kgs), sheep, tendu leaves etc. which were amenable for economic activity. Local occupations like weaving, leather work is on traditional methods and is amenable for modernisation.  These and other details are documented in some of the case studies (See for example the case study on Educational Innovations for Rural development by T V Rao) and the book on “The Rural University” by Ravi Matthai. When we presented our ideas to the ICSSR Committee in the District Collector’s office in Ajmer (R. S. Kumat was the District Collector), the committee including Anil Bordia were not convinced but said that Ravi and team should go ahead and do whatever they felt right but this may not help the High power committee much. Ravi argued that there is no easy solution to implement the committee report unless the basic issues are settled. I think it is at this time the ICSSR committee started losing their interest except J. P. Naik who worked all his life on education issues. I remember JP visiting IIMA a few years later and my taking him out to Vishala for a dinner and having a long chat on these issues.
We were set out to use Jawaja as an experimental Block to demonstrate how education (primary and basic) can be made relevant to masses. We tried many experiments including forming farmers; cooperative in Agriculture Produce, Dairying, Beedi making with tendu leaves,  teaching new weaving skills to a group of defunct weavers form cooperative society in Beawar Khas, and training a group of leather workers in leather processing suing modern methods and making new types of products etc.  In all these experiments the Education Department including the teachers and Deputy Education Inspector of Schools from Beawar used to accompany us. Many workshops were conducted to motivate school teachers to participate in the economic activity mobilisation and curriculum development. For example a number of them participated in conducting night classes in villages for mobilising Farmers producing tomatoes to form a Society and sell their produce directly to City markets. Of all these, what stayed on was only skill building of a group of weavers and leather workers. These are the products which get even today exhibited by AAJ (Artisans alliance, Jawaja).
Ravi suffered a heart attack during one of the exhibitions of the Jawaja products in Mumbai. Subsequently the need for developing the marketing skills of the NID developed artisans to market  their products, teaching them accounting, managing their accounts helping them take loans from banks, working out repayment schedules, etc. became main tasks. Both Udai and I dropped out from active involvement of the project and Tushar Moulik and Ranjit Gupta started participating actively in it and working with AAJ. Finally only Ranjit stayed and from NID it was Ashok Chatterjee who continued to involvement in Jawaja passionately.
I think Jawaja is experiment. It is an experience worth going over again and again to learn lessons. Years later Anil Bordia after retiring from Civil service started a project called Lok Jumbish trying to mass replicate some of the aspects of what Ravi Experimented.  
I have personally learnt many lessons from this. Many may not know that Ravi was Chairman of SWRC Tilonia which was being managed by Bunker and Aruna Roy at that time. We visited them in 1975 and it is their continued effort and continued presence that has lead to the current status. Jawaja did not have any presence of its people in the place like Tilonia had Bunker and Aruna. It is because Jawaja was not an experiment in rural development but an experiment in Educational Innovations and solving educational issues by making education more relevant to masses using local resources. Recently even Inderjit Khanna tried out with the help of Mittal Foundation to do similar things with college students. I understand that it could not be extended the way it was planned. This is because we live in a complex world. We need to learn lot. Experiments should not be treated as successes or failures merely on the basis of some prejudged outcomes expected and the learning should in any case be not undermined.
Jawaja produced many people who learnt a lot from it and are helping others. Mehmood Khan, Brian Pinto, Subramnaim (MIDS), Arvind Khare, and several others associated with Jawaja have contributed in their own ways to the society from their earnings. NID continues to get involved in the same.
Perhaps if Ravi was set out to do rural development he would have done it definitely in a different way. He was struggling to give a new meaning to education for masses and for the poorest of the poor and make education more relevant through economic activity. He did not have much of an idea when he was set out what it means to make education more relevant to masses. For that matter even those like me who were born and brought up in rural areas and even the government does not have much of an idea of how to design and manage education to make it more relevant to masses and how to create economic activity at local level. There are only experiments and thoughts. If any government or any NGO or any agency had a workable solution to this issue they would have done it long ago. There are experiments and experiments and no comprehensive and quick solutions to this issue. 
The concept of self-reliance was at the heart of the Jawaja experiment: education that could help those whose lives are directed by others to take greater charge and make choices, and then realize at least some of the choices they make --- and do this without even greater dependence on others. The article “The Rural University” written by Ravi at that time explains the education system he had in mind very succinctly. This article was circulated by many Vice Chancellors in those days to their entire faculty. The fact that there was no one based in Jawaja unlike Tilonia was deliberate, and the fact that the artisans managed for many years without IIMA and NID support is also significant --- self-reliance, genuinely. The fact that those Ravi chose to work with were at the very bottom of a highly discriminatory social structure is noteworthy.  Jawaja experiment had a lot of influence on so many others --- The ‘bottom of the pyramid’ thinking is said to have begun with Jawaja.  Vijay Mahajan was deeply influenced by Jawaja experiment in starting and managing Pradan. The project learning had a ripple effect beyond the IIMA family into so many institutions that have altered the course of development thinking in the country including Pradan, Utthan, NID and many others including the Crafts Council of India and so many others through the demonstration as well as ‘Jawaja alumni’. As Ashok Chatterjee former Director NID puts it  “the impact on NID was profound, influencing the way design education has been structured ever since. Ravi’s involvement with NID is another whole story. It might not have existed today but for him, and his contribution is scarcely remembered beyond the Jawaja connection. In Jawaja, he gave NID a chance to test the relevance of design at the gut level of Indian poverty --- the single most important demonstration ever, to date. The demonstration came at a time of institutional crisis where the self-worth of an institution was at stake. And that of course was one of the intentions of The Rural University idea: to test the relevance of new disciplines emerging in the country and of young professionals from management and design to serve India’s most basic needs of livelihoods and dignity”.

Sunday, March 9, 2014

Management Education: Industry-Academia Interface in HRD

Industry and Academia Interface: What is missing?
Valedictory address by  T V Rao of the NHRDN Jaipur and Fortis on 8th March, 2014

I thank Prof. Bapna, NHRDN Jaipur chapter  and Fortis Health care for inviting me to this conference. I have five points to make for your consideration. However t before I make them for your consideration I would like to say that the National HRD Network itself and its formation is an outcome of Academic-Industry Interface. The NHRDN was started by academics from IIMA and XLRI with support from industry. The very objective is to promote the HRD movement in the country which was conceptualised at IIMA and Larsen and Toubro found that it makes business sense and provided a platform to implement. The XLRI Centre for HRD, L&T and IIMA were instrumental in its foundation and the body was registered at IIMA with support from Industry leaders. In the initial years it was managed by academics from  IIMA, XLRI and IIHMR etc.  and subsequently HR leaders from industry. The NHRDN is itself an example of collaboration and interface. Academics are associated in getting papers and publishing them. The papers themselves are largely written by practitioners. In the last three conferences special attention has been paid to involve student community through special session and faculty by sponsored research. Academic Institutes collaborate in a big way in all these conferences. NHRDN has also started an academic wing called the Academy of HRD which is largely managed by Academics. The Academy used to conduct a distance education program for practitioners in HR to fill the gaps and subsequently started a Fellow program in collaboration with XLRI. The program has graduated around 25 Doctoral level fellows and they are all serving various institutions as well as industry as academics and practitioners.
There is always scope to do more.  I like to make five points for your consideration for enhancing the Industry academic interface taking HR profession as an example. These points are based on the assumption that there is always scope to do a lot more and are intended to help the same.
1.      In professional courses the curricula should be prepared jointly by academia and practitioners. It is true for all profession like Engineering and technology, management, social work, education, law. Medicine and all fields.
2.      All Institutions of higher education should undertake self renewal exercises preferably facilitated by practitioners with self renewal skills
3.      Practitioners should encourage internships summer, winter and project work etc. and fund them to the extent possible to ensure preparation of quality
4.      Universities and colleges should encourage and facilitate extension work or consultancy and research work collaboratively with the organizations.
5.      Practitioners should update themselves periodically by visiting Institutions of higher learning and learning the recent developments in theory and try to implement the same and share their implementation experiences.  
Point 1: Need for Practitioners’ involvement in curricula: Today standards of education are pathetic. My own experience of using fresh students indicates that they are nowhere near what we used to get prepared forty years ago. Unfortunately very one is working independently. The NHRDN, CII and XLRI are a case in point. Several years ago NHRDN held a number of seminars and conferences that generated competency list for HR. It is published in NHRDN books. The AHRD developed model curricula and passed it on to AIMA, XLRI, SCMHRD and a few other institutions. AHRD itself organised a few programs. Ten years alter the memory is lost as there have been changes in office bearers. They developed a competency model for HR professionals. It is good model but perhaps somewhat  ignored its own previous work and focussed more on HR competencies for IT professionals. However they consulted global knowledge forums. It is yet to find its way to academic institutions including XLRI itself and other institutions that collaborated with it from CII or NHRDN.  Today when I look for competent graduates in HRM the scene is disappointing. If I require 100 basic concepts sand 50 skills for handling HR function I hardly find 10% to 20 % of it in the best of the institutions. See appendix for the competencies of HR people and the academic preparation required. So it is high time that academic institutions involve practitioners in preparing academic curricula. This is true not only for HR but for all professions. The HR Compass of NHRDN or other models like the one evolved by us at TVRLS should find their way to academics institution. I use for example the model of HR competencies (see appendix) in the courses of Talent Management or Intellectual capital and HRD Score card at Institutions like IIMA.
Point 2: Here I like to draw my experiences from project IMPACT sponsored by the Department of Electronics, Govt. Of India, World Bank and the Swiss Agency for Development Cooperation. Five years after they have given liberal grants for upgrading electronics and computer education in Colleges of Engineering and technology and polytechnics with the help of IISc, IIT Delhi and Mumbai they found not all institutions are similarly disposed to using of the innovations. TVRLS conducted a study which indicated that adoption of innovations in higher education depended on a number of factors and significant among them is the “Institutional Environment” including its leadership, vision, and faculty processes etc. A tool was developed to bench mark the practices. It is now available for all (see the working paper series of IIMA, 2014 by T. V. Rao and Siddhartha Saxena on Institutional Environment).  These tools can be used by Institutions in the same city or same management and bench mark and improve themselves. Bodies like NHRDN could facilitate such renewal exercises. For example I recommend all Institutions from and around Jaipur to form a  consortium and have small group that can modify this tool,  administer this tool on themselves, benchmark with each other and keep improving themselves. One of the parts of the tool deals with use of practitioners in academics. This effort can also be facilitated by Jaipur HRD Network. It will make a good beginning.
Point 3: BPCL changed its Performance appraisal system a few years. While they paid large sums of money to train about 30 change agents with expertise from the west, for bringing change in their appraisal system it was initiated with a summer trainee from one of the local Management schools. Many institutions have productively used management schools and summer trainees for getting their work done and also to provide learning ground for students and faculty. In XLRI around the time NHRD was conceived, we trained tens summer trainees and sent them out across the country to document the HR practices. It later became a bench marking study and most of the students are HR leaders to day. These experiences indicate a productive way the summer training and industry projects could be sued. Rather than spending enormous amounts of money and getting big and expensive consultants to do work a lot of it could be done n by local management schools.
Point 4: To do these we need competent faculty. It is here that Universities and institutions should have specific grants for faculty development and encourage faculty to offer consultancy and research services to practitioner organizations. They also should encourage outside faculty and practitioners to teach in the schools. The teaching by practitioners makes the education more relevant and also less expensive. Most practitioners are normally happy to teach and are content with small honoraria.
National Professors Scheme of NHRDN:
In order to strengthen the academic inputs and make them more relevant to industry needs and also make available Prominent Professors and HR leaders to teach and share their experiences the NHRDN has started a National Professors scheme. In this scheme the NHRDN identified prominent professors and thought leaders both from academia and industry. Professors like Keith D’Souza and G. P. Rao, Dr. PVR Murthy, Dr. Aquil Busrai, Dwarkanath are accomplished professionals and thought leaders and have both industry and academic experience. They have all around 15 of them have agreed to teach in management schools that are interested in strengthening their student preparation. All that they need is an invitation. The academic institution should prepare half credit courses of 15 sessions across three days or so and allocate their won faculty to teach a part of the course. NHRDN could even think of certification of the students in the course. Jaipur Network can make a consortium of Schools and organises such course for a large number of students so as to maximise the use of the time of such thought leaders.  The next point therefore I like to make is :
Point 5: The National Professors’ Scheme stated by NHRDN serves many of the above purposes if the Institution takes the same seriously and works out a collaborative relationship with NHRDN and the visiting practitioner faculty. Many practitioners take pride in being called a professor or Doctor. The doors of Universities should be opened up for practitioners to register for Ph Ds. NHRDN and ISTD offer some good examples of the same. Several of their members are not Ph. D.s and some are teaching in B schools after they retire.  On the other hand Academic Institutions should become more open and liberal in encouraging those who like to do their Ph. D.s/ a large number of professionals today from industry re interested in doing their Doctorates. We have excellent examples in NHRDN itself. Three of the former Presidents got their Ph. D.s at a later part of their work life.  The AHRD stated a Doctoral level fellow program of AHRD continues. When I was on the Planning Board of Indira Gandhi Open University in mid eighties I proposed to Dr. Ramie Reddy the need for starting a Doctoral Program for practitioners using a list of about 100 Management Professors across the country as guides.  I gave the x example of the doctoral candidates from IIMA who get access to data from industry with contacts of professors like Udai Pareek, S K Bhattacharya etc. I mentioned that Indian Managers are sitting on mountains of data and if they are given a research orientation and guidance they will be able to convert them into thesis and produce far greater contributions than their western counterparts. Dr. Reddy agreed but by the time the proposal reached the University bodies he left IGNOU and the subsequent Vice Chancellors had other priorities. The proposal got shelved but we picked it up in AHRD and demonstrated with the help of XLRI it is possible to have a nationwide doctoral program with guides all across. AHRD still continues this crusade though its sponsor XLRI withdrew to promote their own program. I recommend Universities to become more open to such programs. It is ironical that some Universities stop recognising P the same Professor as a Ph. D. Guide once he retires at the age of 60. It should be the other way. At 60 you have a lot of wisdom, time and experience. You probably can guide and mentor students better. Universities should open themselves to recognise any established professor after sixties a Professor of Eminence and use his or her talent.
Jaipur Network has distinction of having a lot of Economists HRD Network members. The relationship between Economic development and HRD are inseparable. I hope Jaipur Network s wills how the way to others.
My Best wishes.
Appendix Notes:

Preparing HRD managers professionally.

The Academy of Human Resources Development in 1992 itself has prescribed the following minimum standards to qualify as a sound HRD professional: The candidate should have studied and passed a minimum of the following ten courses:

1.   Introductory Course on Organisations: Structure and Dynamics
2.   Human Behaviour in Organisations
3.   Integrated HRD Systems: Introductory course in HRD
4.   Performance Planning, Analysis, Review, Appraisal and Development
5.   Career Planning, Dynamics and Development
6.   Potential Appraisal and Development
7.   Training and Development
8.   Organisation Development and OD Interventions
9.   HRD Strategies and Interventions for Workmen
10. Personal Growth Laboratory

In MBA programmes the first two courses are normally offered as compulsory courses and hence the additional eight courses are needed to be completed to get qualified as a trained HRD professional.
In order to be a qualified Human Resource (HR) professional the candidate needs to complete the following additional courses:
For industrial relations competencies
♦    Labour Laws
♦    Employee Welfare
♦    Collective Bargaining
♦    Trade Unions
♦    Work Redesign and other HR Interventions for Organisational Effectiveness

For personnel management
♦    Recruitment
♦    Manpower Planning
♦    Human Resources Information System
♦    Wage and Salary Administration and Reward Management

Separate standards are prescribed from time to time through diploma programme run by the National Institute of Personnel Management along these lines.
The two-year programmes offered by institutions like the XLRI Jamshedpur, Tata Institute of Social Sciences, Mumbai, Symbiosis Institute, Pune, etc., offer comprehensive programmes on HR including HRD, IR and HRM. The specialisation in human resources management may or may not include a full HRD component depending on the institution offered.

Competencies of HRD Managers
Recently TVRLS has listed the following ten competencies required by HR Managers
1. Business Knowledge: Knowledge of business (products, services, customers, technology, competitors, developments, R&D) and all functions (Sales and marketing, Production and operations, Finance, systems, MIS, logistics, services etc.), Knowledge of Business capital (intellectual+++) and its constituents and methods of building Business capital
2. Functional Excellence: (i)  HR Knowledge, (ii) HR Delivery including culture sensitivity, empathy, coaching and facilitation
3.  Leadership and Change Management: (i) Communication, (ii) Initiative, and (iii) creativity and (iv) Change management
4.  Strategic Thinking: Analytical ability, cost and quality sensitivity, Ability to spot opportunities, anticipate and find alternate ways of solving problems
5.  Personal Credibility
6. Technology Savvy: including HR technology and Research Methods
7. Personnel Management and Administrative skill
8. Vision of the function and Entrepreneurship
9. Learning Attitude and Self Management: (i) self awareness and desire to learn (ii) Time management, (iii) Networking, (iv) Research and analytical skills
10. Execution Skills: (i) Planning and Monitoring skills, (ii) cultural sensitivity, (iii) persuasive skills, (iv) Behaviour modification techniques and  group dynamics, (v) ability to  craft interventions for implementation, (vi) cost and quality sensitivity

Source: Rao, T. V. HRD Score Card 2500, New Delhi, Sage India, Response Books, 2008.

Friday, February 28, 2014

NHRDN Way Forward: Views from Founder President

National HRD Network: Way Forward

Note to President, NHRDN, June 27, 2013

1. NHRDN needs to play a more important role in National matters including Health, Education, Government and Development. The mission will be "to help all agencies, Govt. Departments, Ministries and others that matter in development to recognise and harness human potential for development". At national level many things become HR concerns. One issue for example is how do we help people to learn from the past, learn from each other and learn to help and contribute to each others' growth. NHRDN can develop an agenda for National development and help implement the same. It is in its original charter. In fact Academy was set up to promote HRD work in "not for profit" sectors but unfortunately due to its nature of funding it has not been able to move in that direction and whatever little they built in its early stages was lost subsequently. For example they returned Rs 25 lakhs about ten years ago, to a German Foundation due to their inability to pursue NGO work which was done well between 1994 and 97. They used to publish a journal called Renewal for NGOs which was stopped due to lack of enthusiasm among AHRD staff. NHRDN had in its first conference with a significant representation from Government. For example a number of secretaries from Gandhinagar came for the 1987 conference and the momentum was never taken up to be promoted latter. I am happy to see some interest in Eastern region now and their eagerness to work with MHRD etc. need to be taken seriously and promoted. 

2. Corporate sector can take care of itself.  NHRDN should contribute where it is needed and the country needs it. Having said this I don't mean to say that we should leave corporate sector. We should be agents of HR Transformation than event management body. There are a large number of Networks today thanks to Internet. When there were no networks knowledge flew through NHRDN. Now thee are many, NHRDN should enable all of them in the right direction to smoothen the flow and make it contemporary. NHRDN should become a network of networks. This needs lot of hard work. With the contacts of various past-Presidents and the current one staying in Mumbai and Delhi they can  do a lot in this direction. 

3. Chapters are active at different levels. Some go dead for some time and get resurrected again after a log gap. This should not happen. Can we put in place a mechanism of evaluating the performance of office bearers of all NHRDN chapters - six monthly and send them feedback. A 360 tool may be devised- a simple 10 item scale and data collected every six months and passed on. If and when an office bearer cannot spend time or does not present him/her self at least once in three months and cannot devote reasonable time, he or she should voluntarily step  aside or the 360 Degree feedback should help him/her to take such decisions. Any chapter which does not meet for six months should automatically be made to re-elect new office bearers and start functioning. The chapters should pass such resolutions. The Regional Presidents should visit each of their chapters at least twice in year and interact with them and share and inspire them.  

4. The NHRDN is a Registered Society (1860 Societies  Act) and Trust (under Bombay Public Trust Act 1950). It should follow what is laid down under the Act. NHRDN has been doing this well I assume. The appointment of new office bearers need to be intimated to Charities Commissioner and Registrar of Societies in Ahmedabad as soon as possible and the new Trustees list should be given to them (President, Secretary, treasurer and other elected members of the Society.) In the past there has been some ambiguity on this. The Board should appoint clearly six or seven trustees from among the new Board and inform the same to the Charities Commissioner. The conduct of the body should be both in letter and spirit  and should abide by the constitution. 

5. The expenditure of NHRDN on itself should not be more than certain percentage. Normally for NGOs we say that they should not spend more than 20% of their earnings on themselves and 80% should be spent for the beneficiaries (members and the society at large). This 20% at best can become 30% but the moment it becomes more questions of NHRDN serving its employees rather than members gets raised. We did this in early stages by not having more than a couple of employees and paying them very conservatively. Now I am not sure. The NHRDN headquarters had a lot of volunteers. Satyanarayan was a great example. He would even travel by bus to save money for NHRDN. Now there are many paid employees. It creates its own dynamics. There is a likelihood of some problems from Govt. with drawing tax concessions to a NGO when they see the corporate salary structure of  its  employees and the amount they spend on themselves. Particularly if it is more than what is paid to civil servants in Government of India, there is great threat. I like to warn the NHRDN about this impending danger to NHRDN. NHRDN is not like CII. The Ahmedabad Management Association is a  great role model. It is registered in Ahmedabad as both trust and Society by Dr Vikram Sarabahi.

5. NHRDN should not become an event management body but should become a body that lifts up the standards of HR education in the country. There are not enough interventions made by NHRDN to this direction. It needs to activate its own body like AHRD and collaborators like MDI, IIM Ranchi and other Institutions with which NHRDN has MOUs. It should enter into more MOUs and assign successful HR role models as mentors to these institutions. The National Professor scheme has not taken off. It can do wonders.

6. NHRDN had a large number of Academician associated with it from the beginning. In recent times it has tremendously gone down. Hope you can take this up as one of the missions. It will do mutually some good. Particularly all IIMs, IITs and prominent Institutions should be involved.

7. We have deliberately kept ourselves away from themes like Industrial Relations as they are directly under the domain of NIPM. Whenever we entered into those areas it is with a HRD philosophy. For example during MRR Nair's time we had focussed the entire conference on HRD for workmen and involved IR leaders. The AHRD also conducted a workshop on HRD for IR leaders and people like Prof. N. R. Sheth lead the discussions. The  Interview by Udai Pareek and me on the HRD we dreamt may give some more thoughts.

Friday, February 14, 2014

T.V. Rao Blogs: Intellectual capital Value of Individuals: ICVI

T.V. Rao Blogs: Intellectual capital Value of Individuals: ICVI

Intellectual capital Value of Individuals: ICVI

What is ICVI? Intellectual capital value of Individual

 ICVI © T. V. Rao

Intellectual capital value of an Individual can be defined as a total value of the invisible assets of an individual expressed in financial terms using any given currency at a given point of time. The invisible assets consist of all the knowledge,  attitudes, values, traits, motives, self-concept etc. of an individual possesses at a given point of time and includes the ones he/she is likely to acquire in the rest of the life. It also includes the direct financial acquisitions of the individual and indirect financial contributions acquired by others and caused primarily by the individual. All these values can be expressed in financial terms,
For example I will estimate my intellectual capital value for the next one year.
Occupation: Professor & Consultant
Direct ICV attributable to my competencies or intellectual capital are as follows:
1.       My CTC is my Direct Intellectual capital value:  Rs. 18 lakhs.
2.       The consulting fee I expected to earn is another part of it: = Rs. 25 Lakhs.
3.       If I write a book and get royalties on it may be another Rs. 2 lakh.
4.       Through lectures and other means another Rs 5 lakhs.
Total Direct ICV for the year is Rs. 50 lakhs. This is the direct output this year.
Indirect ICV:
1.       However by virtue of my teaching I have helped along with others to enhance the earning capacity of another 60 students I taught. These students earning capacity before the program in which I taught was Rs. 5 lakhs per person and a total of Rs. 3 crores. After teaching for a year their income increased to Rs. 15 lakhs per head and a total of Rs. 9 crores. For that year. The total teaching hours are 500 of which my contributions is 50 hours or 10%. The financial value addition of one year teaching is Rs. 6 crores, my contribution is 60 lakhs.
2.       I have done consulting for a company saved Rs. 2 crore from their annual expenditure. That is the contribution of many persons and I take credit of sowing seeds for the activity through my consulting report and take an additional 10% as my contribution Rs. 20 lakhs.
3.       Of all the consulting work I have done my HRD audit has stimulated a company to enhance their strategic thinking and utilise their HR competencies by 20%. The total people cost of this company is Rs 15 crores and I have added therefore 3 crores to their capacity utilisation.
4.       People who have read my books have started teaching the same topic in a college and have earned by their own lectures a sum of Rs 5 lakhs this year. (notional as no one reports this or even acknowledges this).
My indirect contribution to the financial output of others is 3.85 crores.
My total ICVI – Rs 50 lakhs + Rs. 385 lakhs = Rs. 435 Lakhs.
Many times our direct earnings are not necessarily full indicators of our real ICVI. It is a gross underestimate. This filed is not so well developed. I am attempting this in my own way to bring to the notice of the people the knowledge, skills, an attitudes, values and self-concept etc. are their intellectual capital. We need to constantly try to multiply and enhance it without necessarily counting the visible and direct returns. Indirect returns on our competencies are many folds and it may accrue to many others and affect our GDP. A harassing bureaucrat or a corrupt government official can prevent the contribution of the honest tax payers and as those who contribute to indirect ICV and affect the GDP are very sensitive to bureaucratic hurdles and poor service standards around them. Thus improving public services is in the interest of enhancing the GDP of the country be helping IC to get translated to monetary terms.
I have started a course at IIMA and taught for the last three years called as Intellectual Capital management through HRD Score card. As a part of this course I used to ask the student to estimate their ICVI for their life time. The estimates some times are amazing. I have reproduced below a few examples as extracts taken from their work outs.
GDR: I would work as an IT consultant or get into any systems based role in my initial years. I would want to work till the age of 47 i.e. 20 years. With a starting salary of 1800000INR and a nominal growth rate and inflation of 30% in 20 years the total sum earned would sum up to 1134297826 INR
After twenty years I would be having my own start up at the age of 47. For the initial 5 years there will be a nominal growth rate of 5% and for the rest of 15 years the growth rate will be 45%. The initial annual turnover will be 20 crores INR. Therefore after 20 years the total turn- over earned would be 9770 crores INR. So my share of earnings from the revenue will be 10% which is 97.7 crores INR.
The total individual earnings sum up to 113+97 = 210 crores INR
 Assets that will be purchased by me will be tangible assets like land, real estate that appreciates in value. I would make investments in those kinds of assets at the age of 40 which would amount to 15 crores. This will grow at the rate of 10 percent then the final value of the asset will be 237 crores and hence the profit from the investment 237 -15 = 222 crores INR
Out of the 20 crores I earn I will be saving ten percent of my earnings would be multiply at the rate of 10% 39 crores INR. The total intellectual capital will sum up to 471 crores i.e. INR ICVI =471 crores.
Here no estimate is made of Indirect ICV.
IKR: I want to work in Education sector most probably in Social sector in Andhra Pradesh. I might work in a private company for a while but eventually I want to become a social entrepreneur in Education sector. Given that, I think my total worth should be measured by the effect I have on the students I educate. This is a hard thing to measure and I can't actually take credit for all the change that my intervention brings about because even though the change might be initiated by my intervention, there must have been lot of things that the children already have and have helped my intervention. So for that, I'll have to give myself only a fraction of the credit.
To measure the value of the change in the students:
I consider that my intervention is going to bring about some 4% change in the earning power of the students. Ignoring other externalities and constraining myself to only this change brought about, I've done a calculation in the attached excel file. I consider the future estimates of per capita GDP in PPP terms. Assuming I start educating now, I'll be affecting some change only after 12 years (2025) or so given that the students don't join the workforce until then. I also assume that I start with a 100 students and each year the no of students increases by 50%. After 10 years it grows by 15%. After 10 years it grows by 5%.
Given these, the total change is about $584M. Of that, I give myself 10% credit which means my IC is $58.4M. This is my total worth.

SN:  Direct
Right now I am looking for a job and will continue to be doing job till next 20 years. So considering the starting CTC package from IIM A to be 14lpa (minimum) and doing job in same company for 3 years and considering 10% of hike in salary but not exactly applied as it may differ. Switching job after 3 years will give hikes in between. Other economic factors are not considered.
Industry experience and PGP from India’s top most B-school IIMA will help to get good hikes when switching and promotions take place. The position expected at this job switch should be of top management.
Till age of 58 I will work in a company then I would retire. Retire doesn’t means I won’t work but I will start something on my own. Taking that value worth 50 lakhs for 1st year assuming constant percentage hike till age of 75.
Total Individual Capital by adding all turns out to be = Rs. 3362 lakhs
Taking CTC values of package that would be offered
Starting from 14lpa

Assuming physical assets worth 10 lakhs
Intellectual Capital = 3362 – 10 = 3352 lakhs
Indirect means capital generated because of me by other people or an organisation.
Considering ratio of earning 1:4 for organisation per individual I will be working with
Indirect IC generated for organisation because of me = 3362 * 4 = 13448 Lakhs
My family members and employees of the company I will be working with will learn from me.
During the journey I will train/mentor some of the employees of the organisation
This is minimal percentage I would count on my head out of they are generating capital.
Combining all for next 40 years indirect capital would be around 10 lakhs
So total Individual Intellectual capital = Direct + Indirect:   = 3352 + (13448 + 10)   = Rs16810 lakhs

ICIV is an interesting concept for skills development and growth. Please give your views below. When you quote, please acknowledge this as a concept by T.V. Rao.