{"id":3239,"date":"2019-11-01T23:00:42","date_gmt":"2019-11-01T17:30:42","guid":{"rendered":"https:\/\/ravi.rajiniravi.com\/blog\/?p=3239"},"modified":"2019-11-02T13:42:21","modified_gmt":"2019-11-02T08:12:21","slug":"15-key-takeaways-from-the-raghuram-rajan-lectures-that-are-relevant-any-sector","status":"publish","type":"post","link":"https:\/\/ravi.rajiniravi.com\/blog\/2019\/11\/15-key-takeaways-from-the-raghuram-rajan-lectures-that-are-relevant-any-sector\/","title":{"rendered":"15 key takeaways from the Raghuram Rajan lectures (that are relevant any sector)"},"content":{"rendered":"
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This note was first published on Linkedin Pulse<\/a>.<\/p>\n

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Raghuram Rajan delivered 2 brilliant lectures at the Watson institute – 1) India\u2019s Economy: How Did We Get Here and What Can be Done?<\/a> and 2) India in the World: The \u201cVision\u201d Thing<\/a>.<\/p>\n

He put forth on a few points and arguments, which I thought made tremendous sense, in general, even stripped of the context of the Indian economic performance. I could definitely relate them to what I have seen and experienced over my career.<\/p>\n

Here are 15 key takeaways from these 2 lectures…<\/p>\n

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  1. Steadily falling investment is the first reason for low growth.<\/li>\n
  2. Significant, continued reforms are necessary. They don’t necessarily drive growth immediately, but create the future environment for strong growth.<\/li>\n
  3. For sustained growth, it is critical to keep new projects going. If the number of projects initiated are falling or a whole lot of old projects are stalled, slow growth will be inevitable.<\/li>\n
  4. You have to recognize the bad because, until you recognize it, you don’t do anything about it.<\/li>\n
  5. Right timing is as critical as the right move.<\/li>\n
  6. Uncertainty in decision making, one could argue, also causes some fall in demand.<\/li>\n
  7. A bad way to run a firm is if you underpay at the top, because you don’t get much talent to run the firm.<\/li>\n
  8. Extreme centralisation also puts considerable pressure on performance as the top leadership, even the most hardworking, has limited capacity<\/li>\n
  9. For centralised systems to work effectively, leadership needs to put out a “consistent, articulated and coherent vision”. Else, everyone below is left guessing (uncertainty) and their follow through will be narrow. You can’t have centralisation and no vision. And no, a series of programs doesn’t mount to vision.<\/li>\n
  10. Neither extreme centralisation or extreme decentralisation is effective – a good operation needs an overall framework and decentralised decision making to succeed.<\/li>\n
  11. Ideas (brainwaves) cannot be implemented without testing. Broader thinking, rather than just at the top, is needed before implementation.<\/li>\n
  12. Focus should be on the broader achievement of a program\/vision rather than numerical targets around it.<\/li>\n
  13. People respect Indian leaders not because of the force of their personality and performance, but because they represent a 1.3 billion strong market that is growing fast.<\/li>\n
  14. Good innovation requires debate and free speech.<\/li>\n
  15. Stress \/ adversity is a terrible thing to waste. It offers opportunities for substantial change. Start with the stress sectors – there is no point offering stimulus at an overall level is stress sectors hold back growth.<\/li>\n<\/ol>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    This note was first published on Linkedin Pulse. Raghuram Rajan delivered 2 brilliant lectures at the Watson institute – 1) India\u2019s Economy: How Did We Get Here and What Can be Done? and 2) India in the World: The \u201cVision\u201d Thing. He put forth on a few points and arguments, which I thought made tremendous […]<\/p>\n","protected":false},"author":1,"featured_media":3979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"book_review_cover_url":"","book_review_title":"","book_review_series":"","book_review_author":"","book_review_genre":"","book_review_isbn":"","book_review_publisher":"","book_review_release_date":"","book_review_format":"","book_review_pages":"","book_review_source":"","book_review_rating":"","book_review_summary":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88],"tags":[],"class_list":["post-3239","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"jetpack_featured_media_url":"https:\/\/ravi.rajiniravi.com\/blog\/wp-content\/uploads\/2021\/01\/photo-1547139559-c89c59d117611.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/comments?post=3239"}],"version-history":[{"count":1,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions"}],"predecessor-version":[{"id":3240,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/posts\/3239\/revisions\/3240"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media\/3979"}],"wp:attachment":[{"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/media?parent=3239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/categories?post=3239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ravi.rajiniravi.com\/blog\/wp-json\/wp\/v2\/tags?post=3239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}