Resolutions in a time of recession

(It started out meaning to be a funny piece. But then, the situation took over. But it was still fun to

The year 2008 has been called an annus horribilus. It may have begun for Mumbai with the surprising and violent rise of the MNS and ended with the unexpectedly sudden terror attacks, but perhaps the shock of the global recession slowly creeping its way into India and the Indian psyche is what made the last year truly nasty for many. Even as the housing market gradually ground to a shocking low, and fuel prices sank far enough to be easily affordable again, the value of money also dipped – you now get far less bang for that hard-earned buck than was anticipated. And while inflation dropped, those who understood what was going on looked for anything that would be safe as an investment opportunity rather than the instant gratification of a soaring Sensex and a guaranteed profit from speculation. Today, people have learned to be careful and are making sure that their belts are, figuratively speaking of course, as firmly cinched as is possible. There needs to be money available for a future that, at the moment, never mind reassurances from the pundits, seems more uncertain than ever. And people are hanging on to funds, to security, to jobs – who knows where a new one will come from? – anything to be financially stable and be assured of an immediate future with no major hurdles.

Salaried folk are no less nervous than those who have always been in the upper economic echelons. Be it recruitment professionals, whose work it is to find jobs for the qualified and talented, are finding that however worthy their clients may be, it is the jobs that are no longer as easily available. Projects that were planned and known of have been pushed back to a time when there is more money, and some have been shelved completely. “Recruitment has slowed down as projects have been postponed and companies are going slow on expansion plans which has directly affected recruitment,” says Nita Joshi, partner at K&J Associates, a company known for its expertise in media placements.

It is not that there is no interest from local and international firms for what India has to offer. In fact, as Arun Katiyar, Bangalore-based content and communications consultant says, “Work-wise I have seen interest in what I do grow - because companies want to outsource as much as they can, and a consultant like me can make that happen.” But there have been some adjustments where compensation is concerned, for instance, “One company has increased my compensation, but reduced the number of days they engage me, bringing their total billing down.” The best is still wanted, but fewer people are taken on to do more, he finds, and some projects are on hold, who knows for how long. “Companies are also being forced to find the best talent and stay ahead of the curve. They have stopped work on all good-to-have projects but increased focus on quality, SLAs and innovation.”

Anurag Batra, a media-watcher and entrepreneur, chairman and editor-in-chief of the exchange4media group says that “We (at exchange4media group) haven’t been affected by the so-called ‘recession’, as our media products (exchange4media.com,IMPACT and PITCH) actually help media companies to increase their revenues. We are in a unique position of strength to help media companies grow their business in today’s time. However our real estate publication (Realty Plus) has suffered a substantial decrease in revenues.” He believes that “These times are temporary and more about sentiment, as fundamentals haven’t changed in India.” However, on a more personal level, “As an entrepreneur, it might not be the best time to raise capital for new ventures.”

For Sanjeev Nayyar, a chartered accountant who now runs his own management consulting firm, Surya Consulting, business has seen what he calls “short term hiccups. “Two major projects have got delayed or might not happen.” In one case, “the company had the cash to buy, but decided to postpone the purchase in view of the economic downturn. Another was an restructuring assignment for a smaller organization - in view of the prevailing uncertainty, the company is reluctant to invest monies at this point.” From a personal perspective, “I am not making any major financial commitments. I continue to indulge myself and my family, but with lower cost options.”

Those out of the recognisedly ‘business’ sphere are also experiencing some fallout of the worldwide situation. Ranjana Mirchandani, gallerist, has her own take on the recession. “It makes you work harder, be more resourceful, think more - because money is tight – and, believe it or not, it could even make you think positively, because you stop taking everything for granted.” For well known photographer, Samar Singh Jodha, who balances his ‘social’ work with his professional commitments, “Some of my film and corporate work has been somewhat affected by cutbacks in the current international market scenario.” Since many of his projects focus on social communication work, “I think I will have a serious crunch in my self-funded projects, the photography education/workshops that I do in South/East Asia and Southern/East Africa.” For him, the “real pressure is going to be the work I do with NGOs”.

But it is not all doom and gloom for 2009. Most of these individuals have made certain resolutions, conscious decisions that will help them and those they have responsibilities towards maintain a fairly constant standard of life and living. For her work in the field of showcasing and promoting art, Mirchandani has chosen the route of ‘no change’. She and her team will “Continue putting up great exhibitions of art – what better time than this? Buying good art in bad times has fueled our growth and development, after all!”

Nayyar has made “various resolutions. One is to focus continuously on gaining and sharing of knowledge; two is to improve the quality of delivery - convert all recommendations into reality. Three is to think out of the box and focus on actual rupee savings for the customer; and four, to live with the faith that this too will pass.” More personally speaking, “watch before you spend”. Katiyar is on the same track. He intends to “budget my own expenses better, send out my invoices and ensure timely collection of dues and, of course, make all the long term investments right now, while the market is down.” Batra looks to his work partners to add weight to his mantra: “to get more for less from every stakeholder”, be they colleagues, printers, vendors, landlords or others. All plans to launch new products will have to wait through the next quarter, but “post April I will look at launching new ventures, as this is the best time to create business.” And from the point of view of those she needs to find new projects for, Joshi has a very pragmatic plan: “to look for opportunities in unlikely spaces.”

This too, as Nayyar says, will pass. And it will be a free and far easier world to work in, with the ‘R’ word a time gone by rather than a crunch to live through.