Letter from Nimesh Anand October 21, 2005

One of the interesting rewards of writing a column is the wide variety of mails I receive. Sometimes, they contain words of appreciation, sometimes criticism, and then there are mails from people seeking professional advice. I do not like offering advice because it is not possible to give good advice without involved discussion. Also, most people do not like to receive advice. What they seek to hear is an affirmation of their own conclusions. Against this backdrop of reluctance, when Nimesh Anand (not his real name) wrote to me a few days ago, insisting that we meet, I asked him to summarize his issues first. When his reply arrived, it made me sit up. In many ways, Nimesh Anand is going through a happy problem. He has two job offers at hand from comparable companies for middle management positions. An engineer by education, he has spent most of his life in the sales profession. He wants to know, which of the two offers should he choose? That brings us to a very basic question. What are his goals? If we know a person’s larger goals, making a decision becomes easier. Here is what he has to say about his goals - “...over the next two to three years, I want to get a part-time MBA from a decent school; spend a little more time with my family than I have been able to; position myself to earn in the $500,000 bracket or be able to live in India and earn a US salary.’’ Very commendable, even if very self-centered. I wrote back to him, asking him how old he was. The reply startled me. Nimesh Anand is all of 32-years-old! At 32, he has a burning desire to earn $500,000 a year. He wants a US compensation to be paid out in India. For this he wants to have the kind of job that lets him have “enough time’’ to do a part-time MBA, but from a “decent’’ school and he also wants to spend more time with the family. Where does the company fit into the overall scheme of things? We will worry about that later. First, a little mathematics. If Nimesh is given out half a million dollars in compensation, his total cost to company will be in the order of a million dollars. It is a simple rule of thumb. You add the office rental, the equipment, other overheads, his travel and related organisational expenses. In the service industry, we normally take the total cost of owning an individual as twice the compensation paid. Given that, what value must Nimesh add such that his company can service his half million ambition? What level of rain making capacity must he have? How would he sustain that level of rain making, year after year? I was baffled. I asked myself, what was I doing when I was 32? It was 1989. My salary was Rs 5,000 per month. Add to that, a twobedroom company-owned house. My job involved coordination between Wipro’s computer factory and the field, looking after debtors and the technical training function. A bit hotchpotch, you may say. But I woke up every morning and ran. I worked hard and looked around baffled at all the people around—they seemed to be infinitely smarter, more competent than me. Seeing them, I worked even harder and asked myself, what value was I adding to be worthy of their company? It’s not that I was a martyr with no material ambitions. I did have my fair share. But they were not the compass of my life. Nor were they my North Star.You may say that was 1989, 16 years ago! Okay, let’s pay Nimesh 16 times or even 32 times more than what I earned then. But his needs are working out to be 375 times than what I used to make! He has at least 30 more years to go before hanging up his boots. If today, he needs half a million, what will he need in each of the three decades ahead of him? His view of a professional career is clearly that of a slot machine. Would he sign up for the rules as well? If all the money he needs must be made before he turns forty, he may have to squeeze all the juice out of his marrow before he hits his prime. Then what? Leaders, who have reached the top in any industry, have done so by giving more to life than they have taken out of it. Their foremost aim at every stage in their career has been to create disproportionate value, for the system, before self. Material rewards have followed, some times quite below their expectations, and sometimes well beyond. Source : http://digvijayankoti.blogspot.in/2009/04/subroto-bagchi-speaks-all-articles-by.html subroto bagchi