On Tuesday, December 1, 2015, Dr Jain <arunjain@iiml.ac.in> wrote:
Dear Friends and Colleagues: As requested by some, I am attaching an edited version of the article so that discussion can be initiated on this platform itself. Sorry for the longish mail but I assume there could be some interesting discussion. Here it is:
There are three broad categories of people in the world now: the unemployable, the locally employable, and the globally employable. Jobs relating to pure manual labour (mundane acts like digging, lifting, sowing, harvesting) have already been taken over by cranes, trucks, lifts, harvesters, earth-movers, etc. This is what I call as the first elephant economy (1EE) that defines roughly 60-70 percent of India. The second elephant economy (2EE) is one where professionally trained skills become crucial - jobs such as call-center and BPO operators, repair shops, nursing, tailoring, news readers and TV anchors, plumbing, driving, air stewards, machine-driven construction, shop-floor technicians, electricians, etc. The biggest focus seemingly of the government in its Make-in-India initiatives in creating skills through Skill Development Council is here. ITIs, polytechnics, and other vocation-related schools play an important part in this effort. This elephant adds far more value in terms of productivity and taxes, is better organized, than the 1EE but then it is hardly enough to take us to the economically advanced nation status. Then comes the 3EE which is knowledge-based, tech-intensive, and which requires newer ideas to flourish. Highest levels of literacy as well as practical skills are crucial to succeed in this new world. This economy relies on highly individualistic KNOWEEs (knowledge-owning entrepreneurial employees) working in teams and offering ideas and solutions to existing problems, and designing and delivering newer knowledge products. Technology companies such as Facebook, Google, Amazon, Microsoft, Samsung, or investment banks, financial and consultancy giants such as Goldman Sachs, Visa-Master Card and McKinsey are willing to pay astronomical salaries (say above INR 1 crore from India's point of view) to KNOWEEs in 3EE. In this world, garage-type companies can quickly scale up to global levels otherwise impossible in 1-2EEs.
Make-in-India (MII) is one of the central policy pillars of the government's plans to take India forward. The focus is on creation of quality manufacturing jobs, leading to cascading multiplier benefits in all the sectors of economy through higher employment, increased productivity, more disposal incomes, and higher private consumption expenditures. Once this sector prospers, it will lead to demand for more primary goods and tertiary services such as transportation, telecom, tourism and retail. Opening up of many sectors such as defense, organized retail, telecom, and the invitation to foreign companies to invest in India are a direct outcome of this policy. While the government may partially succeed in creating new jobs in 2EE, there is a huge disconnect between thinking (if any) and reality in the vital 3EE part. For example, if India is to design and produce its own fifth generation fighter aircraft (FGFA) or integrated missiles defense systems, or alternative nuclear and renewable energy solutions, or advanced robots (such as drones and healthcare surgical arms), then we need more of 3EE individuals to work within India.
The 3EE operates on a different platform than the first two. Individuals here possess capabilities, knowledge, and skills that are hardly available anywhere else. It is like having a complex piece of machinery, the intricacies of which only few know. At our Institute, we have been working on a research project using expensive software that can be customized to one's changing research design purpose. While many can operate the software, but writing codes and algorithms that provide customized solutions within it are a different ball-game altogether. At present we are working on a project that requires handling more than 5000 files each of more than 100 pages and this requires not only operational knowledge of the self-improving 'intelligent' software but also the ability to tweak it through new algorithms. HIGHLY motivated young engineers are doing this part on volunteer basis. As mentioned earlier, not many in India can do this intelligent part.
The KNOWEE likes to work autonomously and cannot be bound either by 9-5 type-constraints or by highly formalized structures. Left unchallenged, they also can get easily distracted, and require only guidance. For the bosses respect has to be earned from such people and commanded. The language and challenges they look for should result in enjoyment, power, money, influence, leverage, scale, and ideas that result in disruption.
The nation faces a triple-whammy here. First, Indian companies especially the PSUs are hardly prepared to handle the type of non-hierarchic structures necessary for retaining the KNOWEEs. Second, Indian companies cannot match the salaries and incentives and quality of assignments offered by the global MNCs just mentioned. And third, majority of the Indian KNOWEEs from NITs and IITs prefer to move to financial and consulting companies either immediately after first degree or join MBA courses leaving their core engineering skills behind. Here even the engineering colleges are lagging behind in processes – we know of many IITs where students are not allowed to work on state-of-the-art but expensive machines to 'prevent possible damage' to equipment. The nation needs to solve these conundrums of 3EE if MII is to become a grand success while taking care of the people in 1EE and 2EE.
From: Dr Jain [mailto:arunjain@iiml.ac.in]
Sent: Tuesday, December 1, 2015 7:15 AM
To: join_mtc@googlegroups.com
Subject: RE: HR in the Knowledge-Ideas Economy
Further to the link to article just sent, allow me to mention that the 3EE concept emerged from my Harvard Business Review (Japan) article published first in 2006 on BRICS economy.
From: Dr Jain [mailto:arunjain@iiml.ac.in]
Sent: Tuesday, December 1, 2015 6:23 AM
To: join_mtc@googlegroups.com
Subject: RE: HR in the Knowledge-Ideas Economy
Dear Friends and Colleagues
PF link to my over-fresh Op-Edit in Financial Chronicle relating to structural, cultural and HR issues in executing 'Make-in-India policy in the Knowledge-Ideas economy. The concept of KNOWEEs was introduced in my book "Competitive Excellence – critical success factors" way back in 1998. I know all of you would be interested in this topic since we are in this business. Many of the recent forum discussions have been on similar points. Probably my piece would provide another perspective. The link is: http://epaper.mydigitalfc.com/articledetailpage.aspx?id=4226924
Comments and suggestions beyond politics are hugely welcome.
Kindest regards.
AKj
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