The World Economic Forum’s Global Competitiveness Index and report for 2014-2015 was released last week.

I am highlighting key notes on India from the report, as the topic of global competitiveness in today’s world is critical and impacts all our lives, directly or indirectly.  These notes indicate the amount of work and important contributions needed especially from our leaders, elected representatives, administrators and all key stakeholders in the public and private sectors.

The World Economic Forum defines competitiveness as the set of institutions, policies, and factors that determine the level of productivity of a country.  The Global Competitiveness Index (GCI) includes a weighted average of many components, each measuring a different aspect of competitiveness.  The components are grouped into 12 pillars: Institutions, Infrastructure, Macroeconomic environment, Health and primary education, Higher Education and training, Goods market efficiency, Labor market efficiency, Financial market development, Technological readiness, Market size, Business sophistication and Innovation.

These are the key notes on India:

• Dropping for the sixth consecutive edition, India ranks 71st (down 11 from previous year) out of 144 economies in the Global Competitiveness Index (GCI) 2014-2015.  It is the lowest ranked among the BRICS economies.  China ranks 28th and continues to lead the BRICS economies by a wide margin-well ahead of Russia (53rd), South Africa (56th), Brazil (57th), and India (71st).
• The rank differential with China (28th) has grown from 14 places in 2007 to 43 today; while India’s GDP per capita was higher than China’s in 1991, today China is four times richer.
• Despite its immense potential and promise, by many accounts India continues to suffer from poverty.  A third of the population still lives in extreme poverty.
• Overall, India does best in the more complex areas of the GCI: innovation (49th) and business sophistication (57th).
• In contrast, it obtains low marks in the more basic and more fundamental drivers of competitiveness.  India ranks 98th on the health and primary education pillar.  The health situation is alarming: infant mortality and malnutrition incidence are among the highest in the world; only 36 percent of the population have access to improved sanitation; and life expectancy is Asia’s second shortest, after Myanmar.  On a more positive note, India is on track to achieve universal primary education, although the quality of primary education remains poor (88th) and it ranks allow 93rd in the higher education and training pillar of the GCI.
• Transport and electricity infrastructure are in need of upgrading (87th).  Addressing the infrastructure gap will require very strong participation on the part of private and foreign investors through public-private partnerships.  For these types of investments to materialize, the institutional framework needs to improve.
• There are encouraging signs.  India has achieved spectacular progress in various measures of corruption and now ranks 65th.  Red tape seems to be less of an issue than it had been, and government efficiency is equally improving.  However, the overall business environment and market efficiency (95th, down 10 places) are undermined by protectionism, monopolies, and various distortionary measures, including subsidies and administrative barriers to entry and operation.
• The World Bank estimated that it takes 12 procedures (130th) and almost a month to register a business (106th).  In addition, it calculated that taxes for a typical registered firm amount, on average, to 63 percent of its profits (130th).  The labor market is inefficient and rigid (112th).  These factors contribute to the high cost of integrating more businesses into the formal economy.  Some estimates find that the informal sector accounts for half of India’s economic output and 90 percent of its employment.  It is therefore urgent that the government create the right incentives for businesses to register and contribute their fair share to the provision of public services.
• India achieves its lowest rank among the 12 pillars in technological readiness (121st).  Despite mobile telephony being almost ubiquitous, India is one of the world’s least digitally connected countries.  Only 15 percent of Indians access the Internet on a regular basis. Broadband Internet, if available at all, remains the privilege of a very few.  India’s knack for frugal innovation should contribute to providing cheap solutions for bridging this digital divide.
• India’s fiscal situation remains a concern, as evidenced by the country’s 101st rank in the macroeconomic environment pillar of the GCI.
• Because of the high degree of informality, the tax base is relatively narrow, representing less than 10 percent of GDP.  In addition, over the past several years India has experienced persistently high, in some years near double-digit, inflation.
• Despite the abundance of low-cost labor, India has a very narrow manufacturing base.  Manufacturing accounts for less than 15 percent of India’s GDP.  Agriculture represents 18 percent of output and employs 47 percent of the workforce.  Low productivity in the sector means very low wages.  The services sector accounts for just 28 percent of employment but for 56 percent of the economy.  White collar jobs remain rare.  The business-process outsourcing sector employs 3.1 million workers, or 0.6 percent of India’s 482 million strong labor force (but accounts for 6 percent of GDP).  India needs to create jobs in the “missing middle” for the 610 million youths under 25—half of India’s population— who have recently entered or will soon enter the workforce.
• India’s competitiveness is also reduced when sustainability is taken into account.  Social sustainability is hindered mainly by the population’s very uneven access to sanitation (only 36 percent of Indians have access to these basic services) and high rates of vulnerable employment.  India’s environmental performance is also below par because the country’s natural assets are depleting.  Air quality has slightly improved, but concentrations of particulate matter and carbon intensity are still very high.  In addition, the limited treatment of wastewater is increasing pressure on India’s water tables, and limited protected areas are wearing down the assessment of the quality of the natural environment.  Although on some issues the authorities are working to improve the situation, little action has been taken on specific but significant areas of environmental management.

Improving competitiveness will yield India huge benefits.  It will help rebalance the economy and move the country up the value chain so as to ensure more solid and stable growth; which in turn could result in more employment opportunities for the country’s rapidly growing population.

There is a tremendous amount of work to be done with strong leadership focus at all levels of governance and partnerships.  It is encouraging to see India’s new prime minister and team actively putting many of these core elements among top priorities for the nation.  Hopefully, we can all contribute in our own ways to at least one of the pillars to ensure effective progress.  There is a long way to go and lots of committed work to reach our aspirations as a nation.  Like it or not, our competitiveness as a country impacts all our lives.

Best wishes…

Note: Special thank you to my Rutgers professor, Dr. Randall Schuler for actively influencing and instilling the habit of following and thinking about global reports, trends and indicators.

Reference:
World Economic Forum’s Global Competitiveness report 2014-2015

Do all disasters provide early warning signs?  Well this seems to be one and hopefully, you will take note and do something about this before it is too late – for yourself and your organization.

When I look around to those working in the corporate world in India, the level of ‘busyness’ and stress seem very visible.  I see people working very long hours, through lots of pressure which seeps into personal lives, stretching themselves with very little exercise time, quality reflection time with themselves or their family or friends.  You might say this is a sign of a developing economy, ambition and need for growth.

Are we in the east following the west, in a crazy pursuit of development, sacrificing core personal value systems and  basic health along the way? Has employee wellbeing taken a back seat? Ironically, the western world considers the topic important nowadays.

This post might hold a biased perspective towards the IT or ITES sectors (Information Technology/Information Technology Enabled Service) as the majority of my first level connections in India work there.  A 2012 article in the New India Express highlighted some disturbing health trends and activities in India Inc.  Another article suggested that 30 to 40% of corporate India suffer from stress related disorders.  Multiple studies, including this one relates to health issues and concerns in call centers.  According to a 2014 article, the Associated Chamber of Commerce and Industry (ASSOCHAM) latest study on “Multitasking Seriously Affecting corporate Women’s Health”, reveals that 78% of working women surveyed in the age bracket of 32-58 years were found to be afflicted with lifestyle, chronic and acute ailments such as obesity, depression, chronic backache, diabetes, hypertension, high cholesterol, heart, kidney disease etc.  I found an interesting blog post with statistics and trends discussing increasing divorce rates in the IT industry.

The warning signs are appearing in front of us as well in various forms.  It’s shocking to hear about early heart attacks, major health issues and even death of twenty/thirty year old young professionals.   These were unheard of, especially among our first level network and extremely rare in the past.  The rise of sedentary lifestyle, stress, extreme working hours, increased commuting time, hyper connectivity through smart devices and food habits seem to play key roles.  Many parents feel that they are not able to find quality time with their kids and also with their partners, especially when both work.

It would be worthwhile for organizations to take valuable initiative to support their employees’ wellbeing.

In financial terms, many companies in the western world discovered this over time – rising healthcare costs start taking a heavy toll once a critical mass is reached with mounting health issues (even if you don’t consider the hidden costs like lost productivity, focus etc.).  As the healthcare and insurance costs increase, it will require a heavy investment on prevention initiatives.  Does anyone foresee healthcare costs in India going down in the near future?

If human capital falls among your top three organizational assets, then how important would the health of your major asset be for your success?

An ex-colleague/occupational health expert in Nokia used to tell me that the key factor to note about employee wellbeing area is that it goes beyond occupational health services, health centers, exercising, physical/mental activities and food habits.  It is very important to look at the total picture that includes and prioritizes healthy work practices, leadership/management/team practices and day to day work environment.

There are also local environmental and cultural factors to recognize, while introducing organizational initiatives.  I heard recently from a friend in a respected organization that introduced therapy support services for its employee population, recognizing support in a high stress environment.  Most people stayed away from the service due to the social stigma attached to the word, ‘therapy’.

International experts have noted that there is an urgent need in India to introduce a comprehensive Occupational Health and Safety Act in line with many industrialized countries.  The laws are  only an important starting point.  These efforts have to extend beyond the blue collar world, covering the entire workforce and could also be spearheaded by leading industry organizations like Nasscom.  

For a leader, an organization or you as an individual, it is worthwhile to put health and wellbeing on your agenda for various reasons.  As we all know, the better we feel physically and emotionally, the higher the probability of impactful output in terms of energy, idea and results.

What are few basic things that organizations and leaders could do?

1. Encourage health related activities periodically through the year, including health checkups, options to followup with healthcare experts, physical activities, hobby clubs, free or subsidized fitness classes at the workplace, also reducing the extra effort for employees and probably their families.  Using external experts would be the recommended option for reasons of absolute privacy for employees.  Confidentiality on health and personal issues should be non negotiable, with higher levels for HR professionals who are privy to such information (overheard couple of comments regarding not trusting HR with personal information).
2. Look for ways in which the physical infrastructure can support employee wellbeing.  Incorporate workplace practices that support related behaviors.  e.g. ergonomic chairs, mouses, keyboards, screens, tables, quiet/thinking rooms, standing or moving at least couple of hours each day etc.  A simple example for a cost-benefit case would be to calculate the increasing number of sick leaves due to back pain nowadays.
3. Build awareness on health topics and healthy practices through various channels and forms of media.  Invite experts to educate and open that information to even employee families.
4. Review company leadership and management practices.  Look for unsustainable management practices that lead to high stress and low productivity.  Ask employees through anonymous surveys.  Conduct followup workshops or group discussions with teams and groups of employees that lead to relevant changes or even provide an avenue to bring out hidden stress and concerns.  Build a respectful, collaborative work environment.  These may also address fundamental work and management factors.
5. Address social, cultural aspects.  Focus on the impact and output of work, not the time spent in the office.  Introduce flexible working hours if the team collaboration environment allows for that and the option to work a day or two from home, provided the right infrastructure is available.
6. Provide and promote more healthy food and drink options in the company cafeterias.
7. Tie up with services providers to provide discount coupons to employees on focused learning, fitness and fun activities that may meet the needs of wide spectrum of employees and could extend outside the workspace.

Generally, initiatives in this space seem to need a lot more support and sponsorship as the effectiveness is questioned by many non believers.  In reality, many individuals feel that employees are treated as commodities or quickly replaceable objects (reflection of bad leadership & management).  When the healthcare numbers start hitting a critical mass, companies will be forced to act for purely financial reasons.  There are great opportunities for organizations and leaders who want to stand out from the rest of the crowd, proactively work on this topic and show that they truly care about their major asset, in a sustainable manner.

At a personal level for yourself and your family, I pray that you will not wait for your company to take initiative or introduce necessary changes in your lives that are in your control.  You would know them in your mind but may not have acted due to being busy or for other reasons.  If not, please find time with a credible connection to reflect and clarify your priorities.  Do influence your employer and relevant groups wherever possible, to help build a supportive environment.  We cannot ignore that fact that most of our time awake will be at work and even small changes there could have a big impact on life.

More research and focused actions are needed on this topic in India.  Let us please lose sight of this important topic.  Would you agree?

Additional Reading:* An article related to the U.S. environment that appeared later in ‘Talent Management’ (posted July 9, 2014). “Report by human resources research and consulting firm Towers Watson – more than two-thirds of the nearly 200 U.S. employers it surveyed said they plan to increase their support of health and wellness programs during the next two years, while an additional 17 percent plan to significantly increase support…According to the report’s analysis of “high-effectiveness” organizations, there is a strong link between highly effective health and productivity strategies and strong human capital and financial results.”

How many teams does one work with in a lifetime?  A collection of multiple teams working efficiently towards common goals are fundamental to the success of any program or organization.  It is therefore important for leaders to build a shared understanding and definition for high performance (individual and team).  After having worked in and with various diverse teams as a member and consultant (sometimes ones with major issues), the following factors or elements seem ‘non negotiable’, in order to develop a high performing team.

1. Self & Social Awareness
Self awareness is the fundamental building block of any development effort, either at the individual or team level.  Strong self and social awareness are consciously developed using appropriate tools or assessments (eg. Team Management Profile) and conscious practices. If practiced well in a consistent manner, they result in a high degree of personal trust, and creation of “friend, not foe”/“towards, not away” frames (Daniel Goleman’s ‘Social Intelligence’, David Rock’s ‘Quiet Leadership’). The leader spends time with team members actively listening, coaching and empowering (not controlling or answering questions always). He/she is conscious about keeping his or her own ego and biases under check. The perception of fairness within the team is strong. Enabling a learning environment ensures that team members are encouraged to stretch, acknowledge mistakes & learn to make necessary adjustments with accountability.  Team members feel encouraged to flourish and find meaning in their work, not restricted or controlled.

2. Key Stakeholders/Outside-In Perspective
These teams are aware of and always work with the key stakeholder perspectives (Dave Ulrich & Norm Smallwood use the term, “Outside-In”), while developing their Points of View.  To start with, they map out key internal and external stakeholders and work towards building strong relationships.

3. Purpose of Existence
Through the leaders initiative and facilitation, the team builds together clear, inspiring answers to these key questions: Why do we exist as a team? What is our common vision and purpose? How do we achieve value for our key stakeholders?

4. Clarity of Roles/Responsibilities
There is a strong understanding of each others’ roles and responsibilities, and how they practically interface with each other. These are aligned with the core objectives. I’ve found this area to be a big cause of frustration and conflicts within teams and the reality is that it is very difficult to document everything into a single ‘roles & responsibilities’ document in today’s constantly evolving environments. In cases where misalignment or confusion appears, clarity needs to be forged through constant open dialogues (facilitated by the leader or an expert). This will work smoothly only if the social and self awareness competencies of the team have been consciously developed in the beginning.

5. Diversity
For a high performing team, diversity in thinking, work preferences and approaches are essential. Mutually complementary and supporting skills ensure that there is a healthy spread of task, behavioral preferences and strengths.  Diversity has the potential to create more stress and challenging environments in the beginning, sometimes resulting in in negative conflicts but the potential for achievement is much higher if the social and awareness factors are addressed proactively. Constructive challenges help a team push a team further, without needing to wait for external stimuli.  Managing diversity can also serve as a strong test and development for the leader’s maturity, emotional intelligence and leadership skills. Michael Watkins (First Hundred Days) noted that organizations can be like organisms – they repel any new or foreign body entering the system. Diversity keeps a team open and sensitive to competitive challenges or strategic shifts and challenges ‘herd’ mentality.

6. Focus/Priorities
Most teams get inundated with demands over time and have the constant challenge of delivering more than they can support. High performing teams and leaders build clarity around the right priorities and results, through reflection, active dialogues, alignment with key stakeholders and focusing their intense efforts accordingly. The performance management and reward systems are aligned accordingly. This also relates to clarity on goals, expectations and progress reviews at the individual level. In his recent HBR article “The Focused Leader”, Daniel Goleman noted that a primary task of leadership is to direct attention.

For any leader of a team, it is helpful to ask oneself what percentage of time is spent reflecting on or discussing these topics – individually and with the team (especially during the early phases of a team’s forming and norming stages)? Most teams spend majority of their time discussing practical issues at hand or technical topics. If a leader does not facilitate and enable the building blocks of team development especially in the early stages, and constantly follow-up on these elements, she or he will spend a lot more time later thinking about and sorting out related issues.

It is never too late to start. This important team development capability needs to be built either internally with HR support or with external experts.  These factors become even more relevant and important for senior level teams with high impact on the overall organization.

Are there any other ‘must-haves’ in your view?

Best wishes…