I remember the time we were in dubai when the "action " was taking place.When we went in 2002, it was just the begining of the bubble getting bigger.The hitherto empty roads soon started filling up with cars, the malls got bigger, the apartments got swankier, the crowd got more western, the metro came in, the 'world' and 'palm' projects took the earth by storm, the world's tallest building came up in the shortest time, the people got richer, i can go on and on ....By 2007 when we left, it was paradise, everyone was happy and wealthy,there couldnt have been a better place on earth.So much growth and in such a short time.....
The truth is, Dubai grew exponentially during this period and it was a meteoric rise.
Now, the bubble seems to have burst.The dubai government has no money to honour the debt instruments it has issued.It is a sovereign fund going bust.Imagine if your bank says that they cant honour the FD's and savings account money you want to withdraw...
Why has all this happended?Is it a miscalculation or sheer bad luck ?The moot point to me is too much ambition and lack of fundamentals behind such growth.Let me dig deep into this now...
Dubai's rulers were ambitious and wanted to make it a world wonder.They borrowed money from all and invested them in real estate projects.25% of the world's cranes were in Dubai at one point of time so much so that the crane became Dubai's national bird.With the US meltdown, there were no buyers for the real estate projects and the whole thing is on the verge of collapsing...
Now, lets take this example to derive some learnings for life...
Is too much of ambition a bane? Is it true that anything in life which rises so fast is prone to falling down rapidly?Here, I am also reminded of certain companies and people who grew so fast and came down so heavily subsequently.....
I would lie with that side of the argument supporting the fundamental flaws. I firmly believe that any growth of this proportion can be achieved only with compromises or exploiting an opportunity which is really there and not "created". Companies which grow so big in such a short time may be compromising on profits, governments which grow so fast may be doing something sub prime, people who grow so fast may have compromised on their integrity.We all know what happened to the Harshad mehtas, Satyam rajus and Madhu kodas of the world...
Am i being too critical?Can hard work not be the reason behind this growth?Shouldnt people and companies and governments grow big and in quick time?Arent there examples of growth coming out of sheer hard work and innovation.Microsoft, Infosys ,Sachin ,China are there in front of us, to name a few....
Yes, this is the point am trying to make.. the theory of "fundamentals"- growth based on fundamentals.If you look closely, these companies and people grew on the strength of their fundamentals.There was an opportunity in the software space these companies exploited .Basically, there was a strong foundation on which these empires and people grew.The phenomenal growth was based on strong basics and not just mere ambition..
Ambition is important but at the same time the growth has to be based on fundamentals and not compromises..India is a great example of learning to grow within the constraints- compare this with the US which certainly was more ambitious and which grew so big but has fallen flat now.India truly has been slow but surely the growth now seems to be steady and sustainable ....
Sustainability is the key.It is easy to make a fast buck but is it sustainable?Can you continue to make fame and fortune consistently?People like sachin, amitabh, and companies like Tata are admired only for this- Sustaniable growth based on strong fundamentals...
Compromises can take you high but a fall is imminent....It may be true that one could grow fast with compromises whereas a growth based on strenghts would be slow .But the difference is the steadiness- growth may be slow but surely steady
Watch out for those people and companies which grow very fast.Analyse the basis of their growth.You can derive answers if they are going to be there after some time...
One has to be certainly ambitious, but aspire to grow only on the basis of stenghts and not compromises.The pusuit should be behind identification of those strenghts and not on compromises...
There is this story of this ambitious bird which was advised by someone that it can fly higher if it smears some bull shit on its wings.So it took some bull shit and spread it on its wings and started flying.It suddenly realised that it could fly higher and in that joy started to sing.The hunter in the ground noticed it because of the noise it made and shot it down.
The moral of the story- Bull shit can take you high but it is only a matter of time before you are shot down..
So, lets learn to fly high not based on bull shit but on strenghts ...May be the growth is slow, but certainly it will be steady.
Surely, slow and steady wins the race....