1/18/2012

Filling the ocean

This guy was at a public tap with a big hose and filling water into a big tanker. Standing beside him was a long queue of human beans each with a pail or plastic container waiting for their turns.

They have been waiting for hours but the tanker is so huge and may take several hours to fill it up. And several tankers were also waiting. Occasionally the guy at the tap would turn around and slosh a few seconds of water into a couple of empty pails and then turn back to fill the tanker.

Just for a few minutes, many of those in the queue would have their pails filled and can go home happily to continue with their lives. But because the tankers must be filled, probably owned by some big shot, the rest of the peasants would have to wait for their turns, and a little mercy from the dispenser.

The moral of this incident is similar to someone trying to fill the ocean that is full of water and ignores the little ponds, rivers and streams, leaving them high and dry. This is what is happening in countries that believe in pure meritocracy, when the more the merits, the more deserving one should be, and their bank accounts should be continuously be filled even when they have no time to spend the money. The lesser merit or undeserving ones can go on and be hungry. Randians? Wide income gap is natural and nothing can be done about it, so said the meritorious and deserving. Get out of my elite uncaring face.

This is the basic pillar of a pure meritocratic system, pure capitalism. This is the road we are marching on.

Exceptional country, exceptional solution

We must see ourselves as the number one place to live for exceptional people. We must be an exceptional country and for that, the pay of our political leaders must be exceptional. We want the best and we shall pay the best salary in the world to get the best talent the world can provide.

So far every suggestion and proposal for the minister’s salary is arbitrary. The logic is arbitrary logic, selective and some may say self serving. The team making the recommendation chose who they want to compare with, chose the criteria they want to ensure that the pay is still in the millions. Chose to treat ministers like employees, call it pragmatic or to be unkind, mercenary. Chose to motivate them like employees of a company instead of leaders of a country leading the people by their exemplary conduct and dedication.

Let me suggest another selective arbitrary proposal. Pick ten of the world’s top countries, on any criteria, logically should be first world or developed advanced countries, not kingdoms or sheikdoms, and take the salary of their heads of govt for reference. Include all the perks that are measurable and relevant. Forget about Air Force One. It is a stupid comparison.

Convert all their perks into monetary terms and add them to their salaries. At the end of the exercise, take the average number, in monetary terms, and pay them to our head of govt. The rest of the ministerial salary can be a percentage of that. No one then can argue that there is no real comparison because these leaders have other perks. We add in the perks.

I think this formula should provide a handsome income to our ministers. And make it clean, no more other incomes or perks or bonuses. It is arbitrary but arbitrarily fair and logical. And like the Worker’s Party suggested, make the total payout public. It cannot be a case of clean and transparent but cannot tell. There should be nothing to be ashamed of that cannot be made public. Unless all the claims of transparency and clean wage is hogwash. Please tell.

The only unfair bit is that the talents may not live up to it as our talents come from a small pool of self proclaimed elite. Nevermind, be generous and aim to be an exceptional country with exceptional leadership. It may look like an aspiration, an idealistic goal, but we need to start somewhere. And starting with an exceptional salary for our leaders is a good start in the right direction.

1/17/2012

Alvin Yeo makes good sense

Be realistic and compares apple with apple. Alvin Yeo brought out an interesting point, that the political leaders of UK and US came from wealthy background and could afford to take lower salary. He quoted a few British politicians with net worth of 4 or 5 million pounds with the Cameron’s waiting to inherit a 30m pound fortune. For those with 4m or 5m pounds, actually ‘sub sub suey’ compare to our politician’s wealth.

The American leaders are worth more, in the region of $100m or $200m. So they can afford to take in lesser salaries. This is an excellent point.
I do not know how wealthy are our ministers, but I think they are worth not less than the Brits and Americans, except for a few. Or they were not that rich before joining politics.

What is important is that if we want to attract the best, the rich or big income earners, we must go for it, get the really rich to serve. And the irony is that the really rich in the US and UK don’t need to be fed more to be fatter. Are our really rich the same as them, or they are different, that they need to be fatter cats? Even without taking the calculator or computer, one can easily conclude that the top 1000 high income earners would worth as much as the British and American leaders and should not be eyeing for more money.

The whole argument seems to go round and round. They are so rich, they need not be paid so much. And then we need to attract these very rich and need to pay them more? They would not be happy with less? Maybe as a non talent, I am unable to grasp the brilliance or logic in the argument. Really pai seh.

KPIs are good and bad

Heard everyone screaming for KPIs like words from the mouth of gods. KPIs are the answer to work performance and an objective way to measure performance of an employee. HR professionals would tell you that it is just a tool. And a tool is as good as the person using it. It is not something so simple to set.

Does anyone know how much time and effort to write a good and reasonable KPI and how much time and effort to monitor it? It is a very tedious process. But some employers think it is so easy. Either they write it in 10 minutes and tell the employee to write his KPIs which he does not have any clue whatsoever. And the discussion is over in 30 minutes or less, to meet again in 12 months time. And the appraisal is to do the appraising thinking he knows what the employee did all this time. The other flaw is that the result may be achieved by means that have adverse and harmful consequences.

Another issue, who sets the KPIs? You the people who are being affected by the KPIs or the PM who decides the KPIs whether you like it or not, or benefits you or adversely affecting you? The assumption is that the KPIs are good for the intended people and country and the people agree to it. An excellent example is HDB. What should be the KPIs for the minister in charge? Build more and cheaper flats? Build less and charge higher and bring in more profits? Hold back the building to shrink the supply for higher profits? Or tell the buyers, you buy according to my schedule. I need to maximize profit and minimize waste.

Would an employee blindly pursue the KPIs at the expense of other issues for his bonuses instead of long term good of the organization, inn this case the people? Many organizations are caught by this short term KPI trap. There are many conflicting interests in govt than in a private organization. The latter is so much simpler. Governing is not a black and white issue and often more grey and compromises.

Should the people set the KPIs instead? Why should the PM be setting the KPIs? Is there a conflict between what is good for country and people and what is good for party? No, anyone say no? Think of the Whip.

Would there be KPIs for MPs? Who is going to set KPIs for opposition MPs and are they entitled to the same kind of reward and bonuses? It is public money you know.

There was nothing self serving

The debate on the Ministerial Salary has started. A brief description of what I heard and read is that everything about high ministerial salary is for the good of the country and people. There is nothing about self serving.

The island needs strong, good and capable leaders. And how to get them is through paying them well. The ministers and MPs are arguing for more money not for themselves, but for the country and the people. Bad leadership will turn the country upside down overnight. They are preparing the groundwork for future able leaders to come on stage.

Bad leaders are likely to be corrupt and self serving. Only more money can keep them from being corrupt and self serving. Like the gardener, pay him less and he will help himself with the apples to make himself richer. It is human instinct, natural human traits.

The choice of not comparing with foreign leader’s salary is that they are getting much more in undisclosed perks. Ours is clean and everyone knows how much our leaders are getting, from the types of allowances, the number of months of bonuses, the other appointments etc etc. All their income is clean and transparent. These are nothing compare to what foreign leaders are getting in other kinds of perks.

Pegging them to the top 1000 income earners has a logic, not arbitrary. We need people from this group of high income earners to step forward to serve. Never mind that this group of people are high achievers and not really in need of additional money to live on. Many would have been comfortable for life without having to earn another cent. But there is a need to be fair to them, to their families, that their lifestyle is not affected by stepping forward to serve the people and country. The high salary is for this purpose, to attract these people, to tell them that they will not lose out in monetary terms.

Not all people are altruistic and selfless. We got to be pragmatic and realistic. People who made a lot of money are motivated by money. And it is good to provide more monetary incentives to motivate them to work better which will end up better for the people. Bonuses, variable bonuses will be a good start to lure these people into public service, like bait in a mouse trap. We used to have daft and selfless people coming out to serve the country. But that generation of leaders is over. We are living in a brave new world where the ethos is self first. We must accept this and the high salary for ministers is really a recognition of a new reality.

The people must support this high salary recommendation. It is good for the country and people as we go forward. We are talking about the future leadership, about the well being of our children. There is nothing self serving to support such a recommendation.