The HP Phenomenon: Why does HP Matter?

Monday, Dec 7, 2009 I (and a few hundred others) went to the Computer History Museum's book discussion event "Chuck House in Conversation with KQED's Dave Iverson- The HP Phenomenon: Innovation and Business" not so much to learn but to participate in the "feel good" aura that HP themed events seem to create. And I was not disappointed. Along with meeting several fellow HP'ers I enjoyed reliving HP stories. But the last Iverson question, "why does HP matter?" really got me thinking. As people know, I am a "dust to dust, ashes to ashes" kind of a person so why do I care that the HP story be told? Why do several hundred, maybe several thousands care?
After a great deal of thought, I know now why I care. And maybe why every leader should care. The answer as simple in concept as it is complex to execute and it is:
HP brought out the very best in everybody (employees, customers) - for innovation, for just being a better person, a better citizen. Because this is not easy to explain, we call it the HP way (respect for individual etc.) but it is more than that. There was an institutional element to the HP way - management walked the talk. Thus as a entry level software engineer, I stayed in the same hotel as my division GM when I travelled for work and on more than one occasion travelled coach with him on flights. The week I joined HP (after almost 4 interviews and one year) we went on "work 5 day and get paid for 4" work day schedule (this is in the book) to avoid layoffs - not in our division which was doing fine but another part of the company. We did it happily. So did management. As Chuck said, decisions were bottom up - it was our policy - we knew that good times follow bad times and so on - nothing special. Equally important was the HP way impact on community - wherever HP operated. I remember once (pre-Euro days) travelling in Europe, crossing a country border, when 2 members in our party were missing official documents. The gun toting border guards, when they found we were HP employees let us pass - as if that is documentation enough of our honesty. Another time, a new employee in my group, got an apartment rental without references because "Oh, you work at HP - you must be a good person".
HP is a leader in innovation. HP is successful. We were successful. We could be good people and we would be successful.
Good = Success. That is the HP way and HP was living proof of it.
In these turbulent times, when we make compromises with our principles every day, The HP story, that if you do your best you (and the world) will be a better place, matters.
It is the All American story.

Microfinance 2.0: People + Technology investment

The fact that microfinance has been a successful business model for poverty alleviation is undisputed (operational quibbles notwithstanding). The reason is that Grameen bank turned conventional wisdom on its head and made the unbankable (people with no collateral) into safe banking bets. Once they proved that the model was financially sustainable - the world followed suit. Now we are even looking at IPO's for microfinance institutions like SKS and others. So what is next? If microfinance 1.0 was about betting on the innate entrepreneurship of people microfinance 2.0 will be about betting on technology (providing scale by lowering cost) for changing the world. A partnership with social entrepreneurs can pave the way because they typically look for sustainability and are technology savvy. Unfortunately, social capital is still hard to come by especially for social entrepreneurs involved in changing the rural economy through innovations in renewable energy (like solar for lighting) or education (e-content for education) or healthcare. Government institutions involved with rural development should especially take note as they can provide the scale and sustainability. The Jaipur foot is a good example of medical technology that got a boost from a government partnership. Right now when India is so visible in the climate change debate, by investing in companies bringing solar to rural - off grid areas - would strategic. Companies like SELCO, D.Light, Duron energy are good investments for microfinance or NABARD (Govt. banks). It has long been held that research is expensive and emerging economies need only be markets. This is no longer the case when technologies of the developed world do not scale to meet the needs of the emerging economies.

Revitalizing the Rural Economy- NREGS?

I am looking forward to my session ‘Revitalizing the Rural Economy’. The moderator for this session is Biswajit Sen. The session is scheduled for October 28, 2009 from 1600 to 1715 hrs at the Taj Palace Hotel, New Delhi. The session brief is as follows:
“Various initiatives have been made to revitalize the rural economy and mainstream them into the promising economic growth. One of such example is the flagship large scale government program – NREGS. This programme is mandated to strengthen and boost the rural economy through ensuring minimum employability in the rural areas. Besides NREGS, NABARD, the lead bank especially targeting agriculture in India, has been leading various interventions to strengthen the rural economy, primarily the Rural Infrastructure Development Fund that has been instituted to boost the rural infrastructure. These different initiatives have been successful with their own set of challenges. This session envisages deliberating on the challenges of these initiatives and hence drawing on the learnings for future strategies.”
If you have ideas on the subject – its a good time to speak out – I am still formulating my final thoughts and recommendations

NRN VC Fund: Help those doing good work

A headline in my TOI (Times of India Friday Oct 23- I'm getting addicted to acronyms like all Indians) has made my day - yes its the one about Murthy (of Infosys fame) setting up a $36 million VC fund saying "entrepreneurship is the only cure for poverty and job creation". In India, family businesses still rule. If its not the M&M saga its headlines like "Prez's son leads the baba log charge" (about Pres. Patil's son winning assembly seat- politics is business) or how 5th generation Kapoor is set to be the next bollywood star (entertainment). So a move like this by one of the most respected people in India signals change. But it is the fine print that excites me. Murthy has said he will invest in the fields of basic health care, education and nutrition signalling that long term investment is also a priority. Additionally his reason for setting up the fund is: "there are people doing good work in India." He wants to support them and help them grow rather than start yet another effort himself and reinvent the wheel.
Good move Mr. Murthy - I am a fan of Good Capital.

Dancing in the Rain

Life is choice. Do I sit out the storm or learn to dance in the rain? Safe or Sorry? Bored or alive? It all depends on how you frame it. What if the storm lasts longer than the span of my life? What choice do I have? None. Life is not a choice. I must learn to dance. This is the technology and social impact conundrum. The digital divide is in your face 24 -7 in full color- on news channels and print and falsely interpreted as a choice of waiting technology to sort itself out. Get over it. There is no choice. Get engaged or get irrelevant. Use technology to lower cost, invent new paradigms, create new teaching models or just fun. Social entrepreneurs who want to use technology are tormented with the spectre of trying to find a solution (you can't eat technology) without understanding the problem - "if we wanted to eradicate poverty we would first have to understand the "reasons" behind poverty. otherwise what would happen is that the factors that had kept the rickshaw puller poor in the first place would operate over time to once again reduce him to poverty". Framed like this, it presents a false choice. We can't predict time- how long the storm will last. We understand poverty as we get engaged and try to dance. We will learn but we may not ride out the storm. Si there a choice? I got the comment in connection to my recent posts about microfinance and education. What do you think?

Mobile Phones for Literacy? Launch of Kontax

Mobile phones are the revolution in emerging economies. In the past year 128m new mobile subscriptions were signed up in India, 89m in China and 96m across Africa. Mobile Marvels, a special report on telecommunications from The Economist, is compelling in its detail about how handsets are helping even the poorest of the poor - through sustainable and scalable business models. Today. For the future the interesting possibility is mobile broadband Internet decoupled from the computer. What if educational content could be delivered over the phone, or a device held in the palm (like iPhone,) not the ear? Mobile affordability means, in parallel, we need research on how to use mobile phones for education. At Digital Vision program we had several projects exploring education using mobile phones. One of them just went live. Steve Vosloo (DVF 2007) of Shuttleworth Foundation writes:
Just wanted to let you know about the launch of the world's first m-novel written in English and isiXhosa (an indigenous South African language). It's a teen mystery story set in Cape Town about four graffiti writing friends. Read the press release for more info at http://tinyurl.com/kontax-pr2 Or read the first chapter of the story at http://kontax.mobi/ (on your PC or from your WAP-enabled phone). Every day for 21 days there'll be a new chapter. Enjoy. I think m-novels have the potential to be big in Africa and want to explore this space (from a practical and research perspective).
Literacy is directly coupled to creativity, innovation and hope. And education is a big market at the right price point. We already see innovation even in the computer space (there's a $10 computer just announced) and netbooks are overtaking computers in the emerging economies. Projects like Kontax are a beacon of hope.

ISB iDiya Challenge Launched

ISB iDiya Challenge is a National Social Ideas Competition being organised by the Indian School of Business, Hyderabad open to all working professionals. Closing date for submission is October 25, 2009 ( <http://www.isb.edu/idiya> )
From my perspective it is great to see a management school of high calibre like ISB get involved in social issues. Tomorrow's leaders will transform the bottom line to include social impact and institutional change is required to build this new leadership.
The Situation:
49% of the world’s underweight children; 46% of the world’s wasted children and 34% of the world’s stunted children live… in INDIA. <http://www.nytimes.com/2009/03/13/world/asia/13malnutrition.html?_r=2>
456 million people below the international poverty line ($1.25/ day)… live in INDIA. That is one and a half times the population of the USA and one-third of the world’s population below the poverty line. <http://www.worldbank.org.in/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAEXT/INDIAEXTN/0,,contentMDK:21880725~pagePK:141137~piPK:141127~theSitePK:295584,00.html>
70% of the population does not have access to basic banking and financial services… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>
41% of the population does not own any of the basic products/assets – bicycle; radio; telephone… in Rural INDIA. <http://www.urbanindia.nic.in/moud/theministry/subordinateoff/tcpo/REPORTON_BANKINGSERVICES/CHAPTER-1.pdf>

The Response:
Some individuals have taken the untrodden path and have chosen to create companies which do good and also do business.
DesiCrew - http://www.desicrew.in/. Rural BPO delivering 40% cost savings to its clients while changing lives of rural populations. 80% of its team are women.
Dial 1298 for Ambulance - http://www.1298.in/. Rolling out a nationwide network of life support ambulance service.
Inclusive Planet - http://www.inclusiveplanet.com// <http://www.inclusiveplanet.com/> . Building the world’s largest community of differently-abled persons.

Mentoring partners for ISB iDiya: Acumen Fund, Deloitte, DFJ, Google, Intellecap, Seedfund, Unitus, Venture East.
Registration- www.isb.edu/idiya <http://www.isb.edu/idiya> . Email: idiya@isb.edu.
ISB iDiya Networking Platform: http://isbidiya.ning.com/
Facebook: http://www.facebook.com/pages/Hyderabad-India/ISB-iDiya/127648572855

Microfinance and Education: A win-win partnership

There is a Chinese proverb that goes something like this: if you want to plan for a year, plant a rice field, if you want to plan for ten years, plant a tree and if you want to plan for the future, educate your child. Microfinance is addressing the 1-10 year scenario which is pretty great. But last year, at the Tech Awards (http://www.techawards.org/) I heard of a business model innovation - a partnership - that addresses the future. It is a combination microfinance plus education model. In this model, women who receive loans are encouraged to send their children to a partner education NGO for "free" or at a subsidised rate. The partner institutions decide how the finances are shared (the interest payments) for optimal sustainability of both organisations. This is a win-win model where the women are encouraged to make a go of the business, (education is a social benefit - unquantifiable through standard metrics), microfinace institutions have to do less policing about the use of their funds and education NGO gets students who's parents care.
Countries with severe poverty are also plagued with prejudice against women, poor health among children and a growing opportunity gap between the rich and the poor. UNESCO proclaimed September 8 as International Literacy Day in 1965 to highlight the role of education in addressing these issues but while its importance is universally acknowledged, the deployment of quality education in developing economies has proved unsuccessful. This is also true for India where, in spite of a great rise in economic stature of the nation in recent years, the literacy divide is as great as it was prior to the IT boom. The success stories of opportunity inclusion come from the microfinance sector. So wouldn't it be nice if we could leverage the success of the microfinance model to do more? Like maybe provide quality education to those left behind bythe current system?

Education: Ultimate Empowerment

I came to the USA in 1970. When I landed in New York I knew no one and had just 8 dollars in my pocket- since that was the govt. of India regulation at that time. But I did not see any handicap in this. For I had my education. Education is empowerment.

Mahatma Gandhi: "The spread of literacy is the most effective method to advance freedom."
Yet in India, the literacy divide remains intact or worse than it was in 1970.

“Education in the new India has become a crucial marker of inequality. Among the poorest 20 percent of Indian men, half are illiterate, and barely 2 percent graduate from high school, according to government data. By contrast, among the richest 20 percent of Indian men, nearly half are high school graduates and only 2 percent are illiterate." (Education Push Yields Little for India’s Poor”, New York Times, January 17, 2008). Consider this - About 35 percent of India’s population is illiterate; there are 100 million illiterate children of ages 6-14 years.

In the course of my work we come across many organizations devoted to the cause of literacy and education for the underprivileged and they are all absolutely amazing. The fact is the education- especially at the K-12 level- is a huge challenge as it comes intermingled with issues of hunger, health, and hopelessness.

As the bay area Pratham fundraiser is coming up on Saturday, 26th I am reminded of why I support them. Pratham stands out in three ways.
1) Scale: Existing aid models for education make a huge impact but to change the world you need scale. For education, lacking a viable for-profit business model, a change is needed. Pratham is addressing this issue through partnerships. For example- they are a tripartite partnership between the government, citizens and corporates- plus they partner with other NGOs. People say the government is impossible to work with – and it is true – but they are the ones with infrastructure.
2) Metrics: Its good to have the end goal, mission and vision – but we also have to course correct. For that we need metrics and evaluations. Pratham is a learning organization that continuously monitors itself and the field.
3) Community: No service program can work if it not owned by the community, is for the community and run by the community it serves. Pratham’s many outreach programs, cadre of volunteers as well as paid staff – all have a mission of hope. This is the leadership style as well as the distinguishing strategy.

Microfinance Awards - Application Deadline Sept. 30, 2009

Awards and recognition are a great way of supporting change makers- providing emotional and (sometimes) financial support - while engendering healthy competition. So I am pleased to hear that HSBC is sponsoring Microfinance India Awards. The winners will be awarded with a cash value of Rs. 100,000 each, a silver plaque and a citation. The deadline for receiving completed nomination forms is September 30, 2009. Nominations are solicited for two categories:
1- Microfinance Institution of the year 2009 - self nominate
2- Lifetime achievement -individual - long-term, significant contribution to Microfinance sector
The awards will be presented at the Microfinance Summit October 26-28, 2009 in Delhi. Even better the awards will become an annual feature - so if not ready this year - stay tuned.