IndiaThink

How Will You Reward for Performance?

Tanuja Badimala writing for the India Times relays the in-country fiscal exhaustion of repeatedly increasing salaries year over year by an average of 12%.  These increases can be blamed squarely on supply and demand as we have discussed in the past.  There is not enough talent in India to fill the roles the world would like to employ them for.  This combined with the rupee rocketing up against the ever falling value of the US dollar, by 9% in the past four months alone, makes handing out these lucrative packages all the more expensive. 

One of the people interviewed for the article states: "If you perform, you get rewarded’’ leaving the author to comment "So IT folks, it could be time for you to get more aggressive in job performance."

How can companies encourage aggressive job performance matched with a compensation plan inside India?  One of the reasons India is such a great place to send work is the cultural systems existing inside businesses that encourages hierarchy and power distance.  Employees listen to their management and follow orders accordingly.  There is limited questioning on how things are done, how they can be done better, and how an individual can move ahead of their manager.  Time served is the greatest value in the equation for getting a promotion.  The result is individuals who stay in their positions for years without demanding promotions.  Yes, these individuals may appear to be very aggressive salary hunters, but its important to keep in mind that many employees, especially those with call center duties, skip from one company to another without promotion desires to gain salary increases inside the same role. 

Employers need to devise schemes that work with this type of population.  India employees are incentivized by money like all other employees in the world.  Creating schemes where performance is not matched against a promotional ladder but instead clearly laid out as a way to increase existing salaries is the best way to proceed. These plans should not be laid out as competing against peers (although they will be) to gain the biggest piece of the pie.  In some situations, building incentives inside teams will be the best way to gain productivity increases.  India avoids individualism and prefers group based objectives.  Devising schemes around these preferences will create competition across bands of teams but will not result in uncomfortable feelings around beating out peers and being selected as the "best."

This coming change should not be underestimated.  US based companies typically provide at most a 5% increase on average to their employees in the IT industry with more accurate numbers coming in around 2%.  Imagine how you would deal with a staff that was used to receiving very large raises each year...and suddenly wasn't.  This storm is going to be knocking on your door soon.   

No Malware Coders in India: Its a Cultural Difference

Article in the Economic Times today (or tomorrow as it is not quite July 20th in my part of the world) states that "Indian geeks rated good citizens in cyber city."   Indians it turns out are not one of the top producers of Malware in the world...ranking a mere 11 on the 1-12 scale.

Malware is a fancy word for a malicious program bad guys like to drop on your desktop usually through a piece of spam that asks you to download the file.  Viruses are the most commonly known pieces of malware and the general public expects to be protected by these types of programs by their anti-virus software.  The computer security community is starting to use the term malware in a different way over the past few years as a term that describes a program that remains undetected by anti-virus software.  An elite program if you will, one that is distributed in a way that remains undetected.  A very good recent example of this is was in the news a few days back.  Several companies were targeted using a sleuth method that sent malware to specific organizations in a way that fell under the radar of the anti-virus companies that traditionally detect these attacks.  Unisys, Booze Allen Hamilton, and Hewlett Packard were some of the companies that feel victim to this phishing attack.

The general assumption is that the most dangerous "hackers" living inside our computer networks today reside in foreign countries; most notably China and Russia followed by Romania.   These countries are notorious for having bad laws to fight computer crime and a flagrant disregard by our government as well as theirs to fight back.  Whats interesting is the thinking behind who is sending out these attacks as opposed to who has the talent and skill sets to be doing so---the keys to the castle if you will.   Can it be argued, as Nandkumar Saravade, director of cyber-security at NASSCOM that "India's strong cultural values act as a dampener for any illegal activities"?

Lets take a look at the some of the categories for cultural thinking in an Indian context that I always fall back on:

1.) Hindu Faith: Over 85% of the country is Hindu.  Most believe in reincarnation which focuses very much on activities in the present life being an indicator for the next.  In other words, do good, come back as a person of a higher caste.  Do bad and come back as a low caste member or some type of animal.

2.) Hierarchy:  Indians have a strong system of hierarchy inside their families and their organizations. Elders rule (although I wonder how many of them are aware of the malware problem facing the world).  The tone of what is right and wrong is very strong through this system with elders setting the stage for the underlings.

3.) Communication Style: Indians communicate indirectly using extensive colloquy that is formal British English.  Are Indians the right people to be implementing a plan to send attractive spam any where else in the world that would be read without immediate detection?  Dear sir or madam, kindly enter your password to your bank account.... (little humor here folks)

These are a few things that come to mind immediately...maybe the assumption that their culture is a major  force around India's low malware development.  But perhaps a more logical answer is availabe, like the idea that only 2% of India's population has access to computers...and that 2% has job offers around every corner.  The economic conditions for computer programs inside India are thriving, unlike the other countries that rank so high on the list.  This of course does little to explain why the US is number one. 

Future CEOs of Indian Corporations: Lets CHAT

I love stumbling upon articles like this one in the Economic Times.  It digs in and asks some interesting questions about transitions Indian companies will face when non-Indians begin running the show.  The texture of the Indian press is a cross between the New York Times and The Enquirer, liberal, ready to gossip and get into the psyche that exists across the continent.  Where else would an author be able to write a piece about how its nation will "feel" about having a band of foreign leaders running its multi-national corporations?

I will be tracking these transitions...I expect if Western leaders are seated at the helm of Indian companies they will find themselves a bit surprised by the power distance, hierarchy, straight line thinking, and the way the troops see their leader.  Most CEO's will enjoy this ego boost, a major difference between an American seat.  But how will they manage the transition?  Will they push Indian companies to use well known western business models?  Use global management techniques asking everyone to act the same way or will they look to the local processes and see what works?  How will India adjust to these new changes--seeing someone other than an Indian in the paper talking about their most impressive corporations? 

Its an exciting time....

Recipe for an International Project Schedule

Step 1: Get an Idea
Step 2: Decide to Outsource the software development
Step 3: Create a schedule to make the budget people happy
Step 4: Wait for the product to launch on time.

Sometimes things work like this but most international projects don't result without care and feeding  through schedule awareness.  Schedule awareness should be one of the biggest priorities of any international program/project manager.  I use both program and project here because I believe a program manager should work above two project managers: one residing in India and one in the buying country.

I spoke to a VP of Products from a large software company last week and this is exactly the method that WORKS for her teams.  Each week 2 project managers and 1 program manager get on a video conference call using all of the tools you want in your pocket for managing international relationships such as white boarding capabilities, voice and video streams and chat room forums. 

The meeting begins with the schedule as it is known from the last meeting and each milestone of the project is discussed at length.  I use at length here in a sarcastic tone but with emphasis because the point is NOT to ask “is it done” rather there should be a conversation that elicits details from the Indian team.  Why?  Please read more about the Indian "Yes." In short, Indians are uncomfortable with confrontations and tend to prefer the answer "yes" rather than offending the person in authority who has put forth the question. 

As each step in the project is discussed, the program manager is adjusting the schedule in real time demonstrating that “it will be completed on time” is not reality if say step 17 is not completed by next week Tuesday.  The Indian team sees the clear picture and a discussion is enhanced by the “facts” being presented. 

This is a great methodology that everyone should steal.  It avoids some of the main obstacles in a Western/Indian relationship.  Language barriers are avoided with the use of video and conference call tools—Indians can write their responses.  The Indian "Yes" is not an issue because there is a factual discussion around the impact of the date slip in relation to the desired completion date--the program manager is adjusting the overall schedule live using the video conference tools so everyone can see plainly when the project will be completed with the new dates. These tactile pieces leave little room to mollify the overall objective of on time completion, avoiding the unfounded confidence of “it will get done."  Bravo!

The Indian Yes

What is the Indian “Yes”? 

Indian's like to agree.  They prefer not to displease, instead selecting to answer in the affirmative.  This is a huge cultural insight that you must keep front of mind when working inside an international relationship. 

Indians tend to feel uncomfortable contradicting another person making it likely that if they perceive bias or a particular preferred response, they will provide it. The desire to say yes is rooted in India's high levels of collectivism, power distance, and the influence of hierarchy inside organizations.  In other words, they work for the good of the group by promoting a positive message, avoiding conflict with superiors who do not offer an open forum for discussions.

What does this mean to you?  Yes does not signify understanding. Confirm all yes’s.  Do not ask questions that result in yes answers such as "will the project be done on time." Instead ask detailed probing questions the elicit more information than yes.  Think of yes as an affirmation instead of a positive response. 

Old School Orgs vs Micromanagement

When I try to explain the difference between the work place environments in India vs. the US, I find myself reaching back. Back to the time when my grandfather had a job at Chrysler and worked there for 30 years. Every day he went in and every few years he was given a new job, one with more responsibility. The equation was simple:

If Brains, Time=Promotion

My American friends call this structure MICROMANAGEMENT.

Amazing. Two generations later our culture has shifted so dramatically that we now view this intensely guided career process as cumbersome, confining, and suffocating. ANGST pops to mind. We want to make our own way at our own pace. We want to be the President of the company when we decide its the right time, not when John Smith in HR thinks we have sat at desk A for 2.2 years and therefore is worthy of a promotion.

Stepping back from the details--these new organizations that are breading grounds for creativity is called flat. They are composed of equal status bearing members who have power. That’s right power. We tell our bosses what we think. We are heard. We contribute at all levels of the org chart. Hierarchy is blurred.

Kurian explains (Are we tuned to the global work culture?) how these new American business ways appear to an Indian employee. Notice the items here that we so easily take for granted:

"all the data is available to you and it is assumed that you are going to use it"
"There are no barriers between your seniors and you".
"You are expected to have a view about everything, and back it up with facts...sitting quietly would be interpreted as non-performance"

The new US equation:

Brains+Personality+Communication+Whatever else is required=Promotion