A Moroccan entrepreneur is looking back on the action of King Mohammed VI

Posted on April 26, 2012 by Jean-Luc Karleskind

Casablanca 22 February 2012

A. is a successful entrepreneur. In his early 40s, US MBA, he is driving a brand new German sports car. A. is managing the successful business inherited from his father. Besides, he has also created an other successful companies that he runs for himself and that has paid him his fancy car. Clearly, A. is a winner in modern Morocco.

M6 policy changes and action have favoured prosperity

The "founding fathers" at the launch of the Moroccan TGV, French president Sarkozy lending 50% of the cost of the project and the Saudis coming up with 25% of the €1.8 bn not including the track infrastructure. A white elephant according to critics.

According to A., M6 as the current king is sometimes nicknamed, has brought about entrepreneurial dynamism. Things have moved: the motorway network has been extended. Oujda (in the far North of the country) has been connected. The Tanger free zone and Tanger Med, the container port are realisations that have to be credited to the regime. As you know, Morocco has signed with France to get a TGV, a high speed train linking the two main local economic hubs: Casablanca and Tanger. The Casablanca airport has been renovated. Also, Royal Air Maroc (RAM) has made Casablanca a hub in direction of West Africa. RAM has acquired Air Sénégal.

Free-trade agreements with the European Union, the United States, the Middle East means that trade tariffs have been abolished. Morocco is willing to join the global production system.

For companies, there are grant programs in place to implement ERP or do strategic diagnosis.

According to A., Morocco is the country in Africa that has succeeded.

Challenges

There remains a high level of illiteracy (around 50% of the population). Corruption, rule of law remain an issue. Recently, a judge has been jailed in Tangiers. This is a positive sign. Is it enough?

A. wanted to vote for the Parti de la Justice et du Développement (PJD), the party of Islamic inspiration that has won the last election. He just was not registered on the voters lists… As many, at the age of 40, he had never voted.

Why would A. vote for the PJD? A. would like that the political system brings about more justice and tackles corruption.

According to A., there is no political risk in Morocco.

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Derb Ghallef: Joutia market, an other face of globalisation

Posted on April 26, 2012 by Jean-Luc Karleskind

Casablanca, 19 February 2012

An oriental souk of electronics

Derb Ghallef is the favourite address of my kids when they come to Casa. They will bring the broken Xbox, the old laptop of their dad, their broken ipod, iwhatever to get it fixed for a price that is a fraction of what they would pay in Luxembourg. Moreover, here they do repair immediately. One does not have to send your toy away and wait for weeks, months sometimes. Of course, they used to buy the odd counterfeit DVD. Today, they don’t bother anymore, they download the movies themselves…

It is probable that the Atos, Dell, BNP Paribas and other global giants installed at Casa Nearshore are drawing on the talent pool produced here hacking everything.

Used laptops...

The young tech wizards repair virtually anything, here iphones, ipads. Apple's increased market share is visible at Derb Ghallef

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Morocco : Offshoring in Casa Nearshore – Integration in the global knowledge industry

Posted on April 26, 2012 by Jean-Luc Karleskind

Casablanca, 22 February 2012

Modern architecture

High quality offices

Building used by BNP Paribas IT development teams

Morocco claims 50% market share of market share in French speaking call center offshoring. Whatever the reality is, Casa Nearshore is an example of what globalisation is today. Here on 50 hectares of gated area, you are in “Globalland”: people, building quality, equipment, all is world class. The companies present here: Dell, BNP Paribas, Atos Origin… all global companies. 18.000 office workers are operating call centers, checking travel expenses, doing IT development. Salaries range from 400 Euro to 1.800 Euro per month. It is likely that as in India, those centers will tend to go up the value chain. A global market for clerical work is emerging thanks to the internet.

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E Sreedharan, CEO of the Delhi Metro Rail Corporation (DMRC)

Posted on April 26, 2012 by Jean-Luc Karleskind

Delhi, 21 December 2011

People can change the world for the better. I do admire very much Doug Englebart for (See “In praise of Doug Engelbart” on this blog) and also Mohamed Yunus. Both have changed the world starting as ordinary men that were not happy with the way things are. An other man to add to this list is E Sreedharan (picture). Mr. Sreedharan has been the CEO of the DMRC for 14 years before stepping down end 2012 at the age of 79. Yet, no one was happy with him leaving. Why? In a country with a dismal infrastructure, a direct consequence of the corruption of the administrative and political personnel, the Delhi metro is just the opposite. An exemple. The first phase of the project has been delivered in 2002 three years in advance and within budget… Mr. Sreedharan told his team that the Delhites could not wait 10 years for a Metro. The deadline was shortened and met.

The Sreedharan way

There is nothing extraordinary per se in Mr. Sreedharan. He is consistent, disciplined and true to himself. I wish I could inculcate a bit of Sreedharan’s style in my own life.

Below, a few of the traits of character of Mr. Sreedharan taken from an article published in The Economics Times on Sunday on 18th December 2011.

Focus on goals not politics – Challenge the power game

In the early years of the project, they had to appoint international project consultants for the project. Based on the bids, his team had chosen the Japanese. The then railway minister insisted on the Germans as they had lobbied hard for the position… Mr. Sreedharan refused to give and says he even refused to give the Minister any explanation.

Pick a few good men

When Mr Sreedharan was appointed in 1996, he was already over 65 years old and to old according to the rulebook. He asked the government for two things: the independence to operate with no interference from politicians and bureaucrats. And the freedom to chose my own team. Today, Mr. Sreedharan says that his team can do without him.

Practice what you preach

Punctuality is a key value at DRMC. Trains have be on time. Therefore, meetings start on schedule and employees who walk into office after 9 o’clock get only half day presence clocked in. Sreedharan leads by example: he is never late for any commitment, at the work site or at meetings.

Walking around seeking different narratives

Weekly meetings with his top team and monthly meetings with mid-level managers. Do not let hierarchy go in the way.

Keep the system clean

Integrity is a priority and non-negotiable. All new DRMC staff take an oath of integrity when they come on board. To foster values, a copy of the Bhagavadgita is given to all employees. Mr. Sreedharan says “I do not consider it a religious text. It is an administrative gospel that teaches you how to face challenges and overcome them”.

Challenge yourself and the team

Stagnation sets in after efficiency, so pull up goal posts and demand higher quality standards to force constant improvement.

Keep the to-do list small

When time is short, prioritise to keep confusion out of execution.

Personal discipline

Gets up at 4.30 am, does yoga and meditation

Is at the office at 8.30am.

Leaves office at 5.30pm.

Has tea with the family and goes out for an hour of evening walk.

Retires by 10pm. Uses cellphone and computers sparingly…

Doesn’t carry work at home and does not bother colleagues when they are at home unless there is an emergency.

Avoids socialising and late-night parties

Leisure: classical music and dance recitals.

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An Indian success to address the traffic issue: the Delhi metro

Posted on April 26, 2012 by Jean-Luc Karleskind

Delhi, 20 December 2011

The most striking success story I have witnessed here is not Infosys or any other successful business we have come across. For me, it is the Delhi metro. It shows how mankind can change its condition. Whilst the major Indian infrastructure seem to be delayed and snared by corruption, the Delhi metro is extraordinary by any world standard. The project has indeed been completed on or before schedule and within budget… What is maybe even more extraordinary is that the behavior of Indians in the metro is the most civilised I have ever seen. One goes down the stairs leaving behind an indescribable chaos to join the most civilised place where there is an impeccable queue, going through individual bag control(?) and getting on the most modern and clean metro one can dream of. We are in India, so let’s say it seems miraculous.

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IMD PED alumni trek to India

Posted on December 19, 2011 by Jean-Luc Karleskind

Delhi, 19 December 2011

As you can see from my bio, I have participated in two executive programs at top business schools. One, the Program for Executive Development at IMD Lausanne in 2001 and the second, the Stanford Executive Program in 2010. Well, IMD remains my alma mater, my “nourishing mother” despite all what Stanford has offered me. As the Italian saying goes, “you can change many things but there are two things you cannot change: your mother and your team” (the football team one is supporting).

A world wonder. Pictures and words come short to describe perfection. Then, there is the absolute and fittingly tragic love story… India, in a nutshell.

The IMD discovery trip in India organised by Aparna Dogra Program Manager of the Program for Executive Development (PED) and Prof. Stuart Read, Co-Director of the program has lived to what my experience with IMD has been over the years: truly outstanding. On day one, we have visited the Indian headquarters of a global foreign agro-business company and discussed the India case with the top management. Then, we have visited the Delhi site of an Indian corporate business processing outsourcing major where we have discussed their strategy with members of the top management. On day two, we have met the General Manager of a foreign luxury goods major, the Managing Director of a foreign consumer products major, internet entrepreneurs, a venture capitalist and finally spent the afternoon at Chandni Chowk bazar, observing the informal economy. If this was not enough, on Sunday, one could go to Agra and see the Taj Mahal.

This week-end in Delhi has been extremely rich and intense. All this has given the group an exposure to many facets of India and has been fascinating. Let me try to share in a few articles on this blog what I have learned and seen.

By all means, I would really like to thank from the bottom of my heart Aparna who has demonstrated an amazing activity, efficiency, determination in one word leadership. I told her “authority” but Aparna did not seem to like the word. Stuart has brought just the right touch of guidance and has been one of us in the learning process. I feel extremely fortunate to have been able to interact for two days with an exceptional person. Finally, let me thank all those who have participated in the event and specially those who have offered us their time and the hospitality at their company or at their club like Ashish Sood, the alumnus hosting the event.

See post produced by Aparna on IMD PED blog

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Indian roads unlike Roman roads

Posted on December 15, 2011 by Jean-Luc Karleskind

Gurgao (New Delhi), 15 December 2011

Other user of the toll highway

Gogol, the Russian author, reportedly said that the problems of Russia were two: fools and roads. I would not express any judgement about fools but from my short experience here, I can safely say that roads are a problem in India. I am now driving back from Jaipur to Delhi. This is a 250 km journey that we shall complete in some five to six hours traveling on a toll highway.

Cows not watching the traffic

The only thing in common this highway has with a European toll motorway in France, Italy or Spain is that there is indeed a toll station. It is costing 250 rupees (4 Euros) one way, half what it would cost in France. So like the cinema, one would pay 50% the European price. But whilst, the cinema experience is 100% of what one would get in Europe, the Indian highway is rather an other story. True, there are a few short tracks of six lanes road that remind me what a motorway could look like. For the rest, well, expect anything.

Sheep herd going against traffic

The road is open to anyone, trucks, motorbikes, tractors, cycles, pedestrians. Not all vehicles were heading in the same direction as the lane. You would come across bikes but also the odd tractor and we met even a herd of sheep. We did not come across any cows walking on the road but quite a number of them were observing the traffic from the side. Then, every ten, twenty kilometers, we did come across a place where rural commercial life takes place, shops, cafes, temples. There the traffic proceeds like in a village, very slowly and sometimes stops like on the picture.

One of things I admire with the Romans is their road network. Some of our moderns roads still follow the track of Roman roads. In a developed country, trade, people, post, administration, army must be able to circulate quickly, safely and comfortably. During the Middle Ages, these flows had virtually stopped in Western Europe and as a result civilisation had fallen back. It took until the Renaissance for trade routes to become active again in Europe thanks partly to the Italian innovation of bill of exchange and double entry accounting, the early banking system. This innovation did remove the necessity for traders to carry gold and become a too attractive target for the road thieves. Trade flourished again and with flows of goods, exchange of ideas, the Renaissance was in the making.

I wonder how “fast” trade flows proceed on such roads. We were slaloming between scores of trucks that were honking furiously at each other and inviting the others to join the concert with “Please use horn” inscribed on the rear of their vehicles. Yet, I could see far more trucks parked and even two trucks lying on the flank…

The good thing with India is that there is hope. All along, there is the building of the six lanes highway in process. Considering that we are here between Delhi and Jaipur, a major touristic attraction and a city of more than 3 millions inhabitants, I can now put some reality on what The Economist coins “India’s crumbling infrastructure”. From what I am reading, there is only so far one can go with economic development if the physical infrastructure is not there. Retail, dairy, even e-commerce is bound to be held back by India’s infrastructure.

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The Dirty Picture” – Going to the cinema in Delhi

Posted on December 12, 2011 by Jean-Luc Karleskind

New Delhi, 12 December 2011

At the moment, the local press is fretting about a government project to censor the internet over “dirty” content upload. I read the opinion of a woman saying that  the movie The Dirty Picture was clearly showing that India’s attitude to what was or was not “dirty” had quite changed. Since the movie was all over the billboards and on  at the cinema next door, I decided to go and see the piece by myself.

I was left with the idea of Indian cinema dating back to the sixties, popular, crowded rooms with people sh0uting and so on. Well, my ticket did cost 250 rupees (4 Euros), not quite a bargain in a country where the daily worker’s wage is 100 rupees. The theatre is like anything we have got in Europe. Not many people either in this 18.50 show, prime time. The movie has been released on 2 December and therefore is quite recent. Admittedly, it is Monday but we are at Connaught Place right at the centre of the capital city.

Then of course the film is in local language, Hindi I suppose  with the odd word in plain English. It is also restricted to over 18.

Now, how was it? First, the over 18 rating would have deserved maximum an over 12 back home. There is still a gap between what is acceptable in India and in the West. Funnily, before each advertising (L’Oréal was present with quite a few) appears on the screen the censorship certificate document.

I must say I have enjoyed the movie a lot despite that I did not understand the dialogues. There was of course the singing and the dancing typical of Bollywood and the volume of the sound was phenomenal. The Dirty Picture tells the life of a real actress, a star of the eighties, Silk Smitha. Silk is a sort of  Maryline Monroe or Amy Winehouse. Silk has committed suicide at the age of 36, financially bankrupt, chain smoker and alcoholic.

The actress playing the part is Vidya Balan whom I would believe is an unusual Bollywood star. She has a degree in sociology and after having enjoyed commercial success in 2006  played the role of a single mother in a 2009 movie for which she won an award. Vidya is innovating with movies in which the main role is not a male hero but a woman hero. I suspect a more assertive role for women is what my female opinion leader was referring to as changes happening in India. In my opinion, excellent acting, distance, irony, complexity of characters that are not black and white, the film is a great movie showing the tragedy of life.

The movie shows also the dream that became nightmare of a girl of rural origin attracted by the lights of the cinema industry and subsequently burned by it. It reminds me that I had read in the press last week about the unexplained death of a young girl aged 19 of rural origin that had been found dead. She wanted to become an actress and had apparently come with her parents  to the house of a small time film producer for a rehearsal. At her insistence, her parents had left her with the producer and went home. Three days later, the young lady had been found dead. There is an inquiry open. Tragic.

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Mahatma Gandhi still alive

Posted on December 12, 2011 by Jean-Luc Karleskind

New Delhi, 12 December 2011

Visiting today Gandhi’s place of cremation, I was moved to tears. I felt as if the soul of the great man was still around and actually reminding me some uncomfortable facts. What have you done with your human mission and dignity? I did not fell very proud. Quite an unforgettable experience.

With Gandhi, there is no shortage of quotations. His Talisman is one of his last sayings before his life ended. It is engraved at the entrance of the memorial.

“I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]. Will he [she] gain anything by it? Will it restore him [her] to a control over his [her] own life and destiny? In other words, will it lead to swaraj [freedom] for the hungry and spiritually starving millions?

Then you will find your doubts and your self melt away.“
- One of the last notes left behind by Gandhi in 1948, expressing his deepest social thought.

Source: Mahatma Gandhi [Last Phase, Vol. II (1958), P. 65]

An other quotation I like a lot:

“A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.”
Mohandas Gandhi

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The four challenges India is facing – Top investment banker worried for the world we will leave for the next generation

Posted on December 10, 2011 by Jean-Luc Karleskind

Bangalore, 10 December 2011

We continue here the account of our conversation with I.B. (see Corporate India). Actually, I.B. had started with the four challenges India is facing and that I am transcribing below.

Dubious taste of Mr. Ambani, an insult to the 7.5 millions living in slums in the same city of Mumbai.

1) Disparity of income that could lead to social unrest
Today, obscene wealth is insulting abject squalor. Emblematic of this is the private house of Tycoon Mukesh Ambani, the owner of the Reliance group, a conglomerate mainly active in oil, gas and plastics. Mr. Ambani has thought fit to build a 170m. high tower for 1 Bn $ deemed to be the most expensive private house in the world (to compare, the emblematic Petronas towers in Kuala Lumpur have cost 2 Bn $). The monthly electricity bill is said to be 150.000 $ per month… In Mumbai, where the house stands, there are 50% of the population or 7.5 millions human beings living in slums. For the time being, in face of the scandal and despite heavy security measures taken around the property, Mr. Ambani has judged safer not to move in…
I.B. said that income disparity could very well lead to another Egypt of Lybia. Seeds for challenging the social order like the Naxal Movement or the Bodos do exist. The Naxalite are a radical Maoist movement promoting armed struggle. Rhetoric is from before the fall of the Berlin Wall but violence is quite current, 76 security men killed on 6 April 2010 and 15 policemen on 17 May 2010 during well planned attacks by hundreds of insurgents. The Bodos are  a tribe that has fought an insurgency during the nineties and that have obtained political recognition. The security forces of the insurgent movement is still active. This all reminds us that the land of Mahatma Gandhi can bust our in extreme violence.
2) Education
I.B. did not mention illiteracy (39% overall and more than 50% for women). He said that if the output number of the education system was high, what about the quality? Too many institutions deliver “paper degrees”. The 20-30 top world class institutions take in students that make above 97-98% at their exams, the very top of the pile. What about the reasonably gifted? They end up in sub-par institutions. Teachers pay is low, classes are overloaded, curricula are outdated (education is too “bookish” said TK Basu).
Like the income disparity, education disparity was feeding frustrations and could lead to similar effects a income disparity, ie social unrest.
3) Health care
India is known world-wide for the quality of its top end hospitals where medical tourists fly in in search of cheaper high-quality treatment. The same applies for India’s medical research and pharmaceutical production. Yet, this is not accessible to the masses. People continue to die on the streets and in the slums with no means, financial and intellectual to access to treatment. The efforts made so far by the government are not enough.
4) Corruption of government
It is the worse political system in the world. There is no decision making. Everybody watches everybody “up to when they go to the toilet” where they could conspire. It is a policy of one step forward and five steps back. This has worsened since the States have come to assert themselves in front of the Federal Government. An example of this is the implementation of the Global Sales Tax that a number of States are refusing to implement.

UB City tower where another Indian "oligarch" Vijay Mallya is having a "modest" home. Lucid people at the top of Indian society see that this cannot continue as it is right now.

What stroke me was that all this was declared by a successful Investment Banker as a matter of fact. We were sitting with him on the 14th floor of an impeccable world class office building in UB City.

What India will we leave to the next generation? was asking I.B as a form of conclusion. You are definitely not alone asking this question dear I.B.
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