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Euthanasia and the Right to Die

Euthanasia and the Right to Die

I. Definitions of Types of Euthanasia

Euthanasia, whether in a medical setting (hospital, clinic, hospice) or not (at home) is often erroneously described as “mercy killing”. Most forms of euthanasia are, indeed, motivated by (some say: misplaced) mercy. Not so others. In Greek, “eu” means both “well” and “easy” and “Thanatos” is death.

Euthanasia is the intentional premature termination of another person’s life either by direct intervention (active euthanasia) or by withholding life-prolonging measures and resources (passive euthanasia), either at the express or implied request of that person (voluntary euthanasia), or in the absence of such approval (non-voluntary euthanasia). Involuntary euthanasia – where the individual wishes to go on living – is an euphemism for murder.

To my mind, passive euthanasia is immoral. The abrupt withdrawal of medical treatment, feeding, and hydration results in a slow and (potentially) torturous death. It took Terri Schiavo 13 days to die, when her tubes were withdrawn in the last two weeks of March 2005. Since it is impossible to conclusively prove that patients in PVS (Persistent Vegetative State) do not suffer pain, it is morally wrong to subject them to such potential gratuitous suffering. Even animals should be treated better. Moreover, passive euthanasia allows us to evade personal responsibility for the patient’s death. In active euthanasia, the relationship between the act (of administering a lethal medication, for instance) and its consequences is direct and unambiguous.

As the philosopher John Finnis notes, to qualify as euthanasia, the termination of life has to be the main and intended aim of the act or omission that lead to it. If the loss of life is incidental (a side effect), the agent is still morally responsible but to describe his actions and omissions as euthanasia would be misleading. Volntariness (accepting the foreseen but unintended consequences of one’s actions and omissions) should be distinguished from intention.

Still, this sophistry obscures the main issue:

If the sanctity of life is a supreme and overriding value (“basic good”), it ought to surely preclude and proscribe all acts and omissions which may shorten it, even when the shortening of life is a mere deleterious side effect.

But this is not the case. The sanctity and value of life compete with a host of other equally potent moral demands. Even the most devout pro-life ethicist accepts that certain medical decisions – for instance, to administer strong analgesics – inevitably truncate the patient’s life. Yet, this is considered moral because the resulting euthanasia is not the main intention of the pain-relieving doctor.

Moreover, the apparent dilemma between the two values (reduce suffering or preserve life) is non-existent.

There are four possible situations. Imagine a patient writhing with insufferable pain.

1. The patient’s life is not at risk if she is not medicated with painkillers (she risks dying if she is medicated)

2. The patient’s life is not at risk either way, medicated or not

3. The patient’s life is at risk either way, medicated or not

4. The patient’s life is at risk if she is not medicated with painkillers

In all four cases, the decisions our doctor has to make are ethically clear cut. He should administer pain-alleviating drugs, except when the patient risks dying (in 1 above). The (possible) shortening of the patient’s life (which is guesswork, at best) is immaterial.

Conclusions:

It is easy to distinguish euthanasia from all other forms of termination of life. Voluntary active euthanasia is morally defensible, at least in principle (see below). Not so other types of euthanasia.

II. Who is or Should Be Subject to Euthanasia? The Problem of Dualism vs. Reductionism

With the exception of radical animal rights activists, most philosophers and laymen consider people – human beings – to be entitled to “special treatment”, to be in possession of unique rights (and commensurate obligations), and to be capable of feats unparalleled in other species.

Thus, opponents of euthanasia universally oppose the killing of “persons”. As the (pro-euthanasia) philosopher John Harris puts it:

” … concern for their welfare, respect for their wishes, respect for the intrinsic value of their lives and respect for their interests.”

Ronald Dworkin emphasizes the investments – made by nature, the person involved, and others – which euthanasia wastes. But he also draws attention to the person’s “critical interests” – the interests whose satisfaction makes life better to live. The manner of one’s own death may be such a critical interest. Hence, one should have the right to choose how one dies because the “right kind” of death (e.g., painless, quick, dignified) reflects on one’s entire life, affirms and improves it.

But who is a person? What makes us human? Many things, most of which are irrelevant to our discussion.

Broadly speaking, though, there are two schools of thought:

(i) That we are rendered human by the very event of our conception (egg meets sperm), or, at the latest, our birth; or

(ii) That we are considered human only when we act and think as conscious humans do.

The proponents of the first case (i) claim that merely possessing a human body (or the potential to come to possess such a body) is enough to qualify us as “persons”. There is no distinction between mind and abode – thought, feelings, and actions are merely manifestations of one underlying unity. The fact that some of these manifestations have yet to materialize (in the case of an embryo) or are mere potentials (in the case of a comatose patient) does not detract from our essential, incontrovertible, and indivisible humanity. We may be immature or damaged persons – but we are persons all the same (and always will be persons).

Though considered “religious” and “spiritual”, this notion is actually a form of reductionism. The mind, “soul”, and “spirit” are mere expressions of one unity, grounded in our “hardware” – in our bodies.

Those who argue the second case (ii) postulate that it is possible to have a human body which does not host a person. People in Persistent Vegetative States, for instance – or fetuses, for that matter – are human but also non-persons. This is because they do not yet – or are unable to – exercise their faculties. Personhood is complexity. When the latter ceases, so does the former. Personhood is acquired and is an extensive parameter, a total, defining state of being. One is either awake or asleep, either dead or alive, either in a state of personhood or not

The latter approach involves fine distinctions between potential, capacity, and skill. A human body (or fertilized egg) have the potential to think, write poetry, feel pain, and value life. At the right phase of somatic development, this potential becomes capacity and, once it is competently exercised – it is a skill.

Embryos and comatose people may have the potential to do and think – but, in the absence of capacities and skills, they are not full-fledged persons. Indeed, in all important respects, they are already dead.

Taken to its logical conclusion, this definition of a person also excludes newborn infants, the severely retarded, the hopelessly quadriplegic, and the catatonic. “Who is a person” becomes a matter of culturally-bound and medically-informed judgment which may be influenced by both ignorance and fashion and, thus, be arbitrary and immoral.

Imagine a computer infected by a computer virus which cannot be quarantined, deleted, or fixed. The virus disables the host and renders it “dead”. Is it still a computer? If someone broke into my house and stole it, can I file an insurance claim? If a colleague destroys it, can I sue her for the damages? The answer is yes. A computer is a computer for as long as it exists physically and a cure is bound to be found even against the most trenchant virus.

Conclusions:

The definition of personhood must rely on objective, determinate and determinable criteria. The anti-euthanasia camp relies on bodily existence as one such criterion. The pro-euthanasia faction has yet to reciprocate.

III. Euthanasia and Suicide

Self-sacrifice, avoidable martyrdom, engaging in life risking activities, refusal to prolong one’s life through medical treatment, euthanasia, overdosing, and self-destruction that is the result of coercion – are all closely related to suicide. They all involve a deliberately self-inflicted death.

But while suicide is chiefly intended to terminate a life – the other acts are aimed at perpetuating, strengthening, and defending values or other people. Many – not only religious people – are appalled by the choice implied in suicide – of death over life. They feel that it demeans life and abnegates its meaning.

Life’s meaning – the outcome of active selection by the individual – is either external (such as “God’s plan”) or internal, the outcome of an arbitrary frame of reference, such as having a career goal. Our life is rendered meaningful only by integrating into an eternal thing, process, design, or being. Suicide makes life trivial because the act is not natural – not part of the eternal framework, the undying process, the timeless cycle of birth and death. Suicide is a break with eternity.

Henry Sidgwick said that only conscious (i.e., intelligent) beings can appreciate values and meanings. So, life is significant to conscious, intelligent, though finite, beings – because it is a part of some eternal goal, plan, process, thing, design, or being. Suicide flies in the face of Sidgwick’s dictum. It is a statement by an intelligent and conscious being about the meaninglessness of life.

If suicide is a statement, than society, in this case, is against the freedom of expression. In the case of suicide, free speech dissonantly clashes with the sanctity of a meaningful life. To rid itself of the anxiety brought on by this conflict, society cast suicide as a depraved or even criminal act and its perpetrators are much castigated.

The suicide violates not only the social contract but, many will add, covenants with God or nature. St. Thomas Aquinas wrote in the “Summa Theologiae” that – since organisms strive to survive – suicide is an unnatural act. Moreover, it adversely affects the community and violates the property rights of God, the imputed owner of one’s spirit. Christianity regards the immortal soul as a gift and, in Jewish writings, it is a deposit. Suicide amounts to the abuse or misuse of God’s possessions, temporarily lodged in a corporeal mansion.

This paternalism was propagated, centuries later, by Sir William Blackstone, the codifier of British Law. Suicide – being self-murder – is a grave felony, which the state has a right to prevent and to punish for. In certain countries this still is the case. In Israel, for instance, a soldier is considered to be “military property” and an attempted suicide is severely punished as “the corruption of an army chattel”.

Paternalism, a malignant mutation of benevolence, is about objectifying people and treating them as possessions. Even fully-informed and consenting adults are not granted full, unmitigated autonomy, freedom, and privacy. This tends to breed “victimless crimes”. The “culprits” – gamblers, homosexuals, communists, suicides, drug addicts, alcoholics, prostitutes – are “protected from themselves” by an intrusive nanny state.

The possession of a right by a person imposes on others a corresponding obligation not to act to frustrate its exercise. Suicide is often the choice of a mentally and legally competent adult. Life is such a basic and deep set phenomenon that even the incompetents – the mentally retarded or mentally insane or minors – can fully gauge its significance and make “informed” decisions, in my view.

The paternalists claim counterfactually that no competent adult “in his right mind” will ever decide to commit suicide. They cite the cases of suicides who survived and felt very happy that they have – as a compelling reason to intervene. But we all make irreversible decisions for which, sometimes, we are sorry. It gives no one the right to interfere.

Paternalism is a slippery slope. Should the state be allowed to prevent the birth of a genetically defective child or forbid his parents to marry in the first place? Should unhealthy adults be forced to abstain from smoking, or steer clear from alcohol? Should they be coerced to exercise?

Suicide is subject to a double moral standard. People are permitted – nay, encouraged – to sacrifice their life only in certain, socially sanctioned, ways. To die on the battlefield or in defense of one’s religion is commendable. This hypocrisy reveals how power structures – the state, institutional religion, political parties, national movements – aim to monopolize the lives of citizens and adherents to do with as they see fit. Suicide threatens this monopoly. Hence the taboo.

Does one have a right to take one’s life?

The answer is: it depends. Certain cultures and societies encourage suicide. Both Japanese kamikaze and Jewish martyrs were extolled for their suicidal actions. Certain professions are knowingly life-threatening – soldiers, firemen, policemen. Certain industries – like the manufacture of armaments, cigarettes, and alcohol – boost overall mortality rates.

In general, suicide is commended when it serves social ends, enhances the cohesion of the group, upholds its values, multiplies its wealth, or defends it from external and internal threats. Social structures and human collectives – empires, countries, firms, bands, institutions – often commit suicide. This is considered to be a healthy process.

More about suicide, the meaning of life, and related considerations – HERE.

Back to our central dilemma:

Is it morally justified to commit suicide in order to avoid certain, forthcoming, unavoidable, and unrelenting torture, pain, or coma?

Is it morally justified to ask others to help you to commit suicide (for instance, if you are incapacitated)?

Imagine a society that venerates life-with-dignity by making euthanasia mandatory (Trollope’s Britannula in “The Fixed Period”) – would it then and there be morally justified to refuse to commit suicide or to help in it?

Conclusions:

Though legal in many countries, suicide is still frowned upon, except when it amounts to socially-sanctioned self-sacrifice.

Assisted suicide is both condemned and illegal in most parts of the world. This is logically inconsistent but reflects society’s fear of a “slippery slope” which may lead from assisted suicide to murder.

IV. Euthanasia and Murder

Imagine killing someone before we have ascertained her preferences as to the manner of her death and whether she wants to die at all. This constitutes murder even if, after the fact, we can prove conclusively that the victim wanted to die.

Is murder, therefore, merely the act of taking life, regardless of circumstances – or is it the nature of the interpersonal interaction that counts? If the latter, the victim’s will counts – if the former, it is irrelevant.

V. Euthanasia, the Value of Life, and the Right to Life

Few philosophers, legislators, and laymen support non-voluntary or involuntary euthanasia. These types of “mercy” killing are associated with the most heinous crimes against humanity committed by the Nazi regime on both its own people and other nations. They are and were also an integral part of every program of active eugenics.

The arguments against killing someone who hasn’t expressed a wish to die (let alone someone who has expressed a desire to go on living) revolve around the right to life. People are assumed to value their life, cherish it, and protect it. Euthanasia – especially the non-voluntary forms – amounts to depriving someone (as well as their nearest and dearest) of something they value.

The right to life – at least as far as human beings are concerned – is a rarely questioned fundamental moral principle. In Western cultures, it is assumed to be inalienable and indivisible (i.e., monolithic). Yet, it is neither. Even if we accept the axiomatic – and therefore arbitrary – source of this right, we are still faced with intractable dilemmas. All said, the right to life may be nothing more than a cultural construct, dependent on social mores, historical contexts, and exegetic systems.

Rights – whether moral or legal – impose obligations or duties on third parties towards the right-holder. One has a right AGAINST other people and thus can prescribe to them certain obligatory behaviors and proscribe certain acts or omissions. Rights and duties are two sides of the same Janus-like ethical coin.

This duality confuses people. They often erroneously identify rights with their attendant duties or obligations, with the morally decent, or even with the morally permissible. One’s rights inform other people how they MUST behave towards one – not how they SHOULD or OUGHT to act morally. Moral behavior is not dependent on the existence of a right. Obligations are.

To complicate matters further, many apparently simple and straightforward rights are amalgams of more basic moral or legal principles. To treat such rights as unities is to mistreat them.

Take the right to life. It is a compendium of no less than eight distinct rights: the right to be brought to life, the right to be born, the right to have one’s life maintained, the right not to be killed, the right to have one’s life saved, the right to save one’s life (wrongly reduced to the right to self-defence), the right to terminate one’s life, and the right to have one’s life terminated.

None of these rights is self-evident, or unambiguous, or universal, or immutable, or automatically applicable. It is safe to say, therefore, that these rights are not primary as hitherto believed – but derivative.

Go HERE to learn more about the Right to Life.

Of the eight strands comprising the right to life, we are concerned with a mere two.

The Right to Have One’s Life Maintained

This leads to a more general quandary. To what extent can one use other people’s bodies, their property, their time, their resources and to deprive them of pleasure, comfort, material possessions, income, or any other thing – in order to maintain one’s life?

Even if it were possible in reality, it is indefensible to maintain that I have a right to sustain, improve, or prolong my life at another’s expense. I cannot demand – though I can morally expect – even a trivial and minimal sacrifice from another in order to prolong my life. I have no right to do so.

Of course, the existence of an implicit, let alone explicit, contract between myself and another party would change the picture. The right to demand sacrifices commensurate with the provisions of the contract would then crystallize and create corresponding duties and obligations.

No embryo has a right to sustain its life, maintain, or prolong it at its mother’s expense. This is true regardless of how insignificant the sacrifice required of her is.

Yet, by knowingly and intentionally conceiving the embryo, the mother can be said to have signed a contract with it. The contract causes the right of the embryo to demand such sacrifices from his mother to crystallize. It also creates corresponding duties and obligations of the mother towards her embryo.

We often find ourselves in a situation where we do not have a given right against other individuals – but we do possess this very same right against society. Society owes us what no constituent-individual does.

Thus, we all have a right to sustain our lives, maintain, prolong, or even improve them at society’s expense – no matter how major and significant the resources required. Public hospitals, state pension schemes, and police forces may be needed in order to fulfill society’s obligations to prolong, maintain, and improve our lives – but fulfill them it must.

Still, each one of us can sign a contract with society – implicitly or explicitly – and abrogate this right. One can volunteer to join the army. Such an act constitutes a contract in which the individual assumes the duty or obligation to give up his or her life.

The Right not to be Killed

It is commonly agreed that every person has the right not to be killed unjustly. Admittedly, what is just and what is unjust is determined by an ethical calculus or a social contract – both constantly in flux.

Still, even if we assume an Archimedean immutable point of moral reference – does A’s right not to be killed mean that third parties are to refrain from enforcing the rights of other people against A? What if the only way to right wrongs committed by A against others – was to kill A? The moral obligation to right wrongs is about restoring the rights of the wronged.

If the continued existence of A is predicated on the repeated and continuous violation of the rights of others – and these other people object to it – then A must be killed if that is the only way to right the wrong and re-assert the rights of A’s victims.

The Right to have One’s Life Saved

There is no such right because there is no moral obligation or duty to save a life. That people believe otherwise demonstrates the muddle between the morally commendable, desirable, and decent (“ought”, “should”) and the morally obligatory, the result of other people’s rights (“must”). In some countries, the obligation to save a life is codified in the law of the land. But legal rights and obligations do not always correspond to moral rights and obligations, or give rise to them.

VI. Euthanasia and Personal Autonomy

The right to have one’s life terminated at will (euthanasia), is subject to social, ethical, and legal strictures. In some countries – such as the Netherlands – it is legal (and socially acceptable) to have one’s life terminated with the help of third parties given a sufficient deterioration in the quality of life and given the imminence of death. One has to be of sound mind and will one’s death knowingly, intentionally, repeatedly, and forcefully.

Should we have a right to die (given hopeless medical circumstances)? When our wish to end it all conflicts with society’s (admittedly, paternalistic) judgment of what is right and what is good for us and for others – what should prevail?

One the one hand, as Patrick Henry put it, “give me liberty or give me death”. A life without personal autonomy and without the freedom to make unpopular and non-conformist decisions is, arguably, not worth living at all!

As Dworkin states:

“Making someone die in a way that others approve, but he believes a horrifying contradiction of his life, is a devastating, odious form of tyranny”.

Still, even the victim’s express wishes may prove to be transient and circumstantial (due to depression, misinformation, or clouded judgment). Can we regard them as immutable and invariable? Moreover, what if the circumstances prove everyone – the victim included – wrong? What if a cure to the victim’s disease is found ten minutes after the euthanasia?

Conclusions:

Personal autonomy is an important value in conflict with other, equally important values. Hence the debate about euthanasia. The problem is intractable and insoluble. No moral calculus (itself based implicitly or explicitly on a hierarchy of values) can tell us which value overrides another and what are the true basic goods.

VII. Euthanasia and Society

It is commonly accepted that where two equally potent values clash, society steps in as an arbiter. The right to material welfare (food, shelter, basic possessions) often conflicts with the right to own private property and to benefit from it. Society strikes a fine balance by, on the one hand, taking from the rich and giving to the poor (through redistributive taxation) and, on the other hand, prohibiting and punishing theft and looting.

Euthanasia involves a few such finely-balanced values: the sanctity of life vs. personal autonomy, the welfare of the many vs. the welfare of the individual, the relief of pain vs. the prolongation and preservation of life.

Why can’t society step in as arbiter in these cases as well?

Moreover, what if a person is rendered incapable of expressing his preferences with regards to the manner and timing of his death – should society step in (through the agency of his family or through the courts or legislature) and make the decision for him?

In a variety of legal situations, parents, court-appointed guardians, custodians, and conservators act for, on behalf of, and in lieu of underage children, the physically and mentally challenged and the disabled. Why not here?

We must distinguish between four situations:

1. The patient foresaw the circumstances and provided an advance directive (living will), asking explicitly for his life to be terminated when certain conditions are met.

2. The patient did not provide an advanced directive but expressed his preference clearly before he was incapacitated. The risk here is that self-interested family members may lie.

3. The patient did not provide an advance directive and did not express his preference aloud – but the decision to terminate his life is commensurate with both his character and with other decisions he made.

4. There is no indication, however indirect, that the patient wishes or would have wished to die had he been capable of expression but the patient is no longer a “person” and, therefore, has no interests to respect, observe, and protect. Moreover, the patient is a burden to himself, to his nearest and dearest, and to society at large. Euthanasia is the right, just, and most efficient thing to do.

Conclusions:

Society can (and often does) legalize euthanasia in the first case and, subject to rigorous fact checking, in the second and third cases. To prevent economically-motivated murder disguised as euthanasia, non-voluntary and involuntary euthanasia (as set in the forth case above) should be banned outright.

VIII. Slippery Slope Arguments

Issues in the Calculus of Rights – The Hierarchy of Rights

The right to life supersedes – in Western moral and legal systems – all other rights. It overrules the right to one’s body, to comfort, to the avoidance of pain, or to ownership of property. Given such lack of equivocation, the amount of dilemmas and controversies surrounding the right to life is, therefore, surprising.

When there is a clash between equally potent rights – for instance, the conflicting rights to life of two people – we can decide among them randomly (by flipping a coin, or casting dice). Alternatively, we can add and subtract rights in a somewhat macabre arithmetic.

Thus, if the continued life of an embryo or a fetus threatens the mother’s life – that is, assuming, controversially, that both of them have an equal right to life – we can decide to kill the fetus. By adding to the mother’s right to life her right to her own body we outweigh the fetus’ right to life.

The Difference between Killing and Letting Die

Counterintuitively, there is a moral gulf between killing (taking a life) and letting die (not saving a life). The right not to be killed is undisputed. There is no right to have one’s own life saved. Where there is a right – and only where there is one – there is an obligation. Thus, while there is an obligation not to kill – there is no obligation to save a life.

Anti-euthanasia ethicists fear that allowing one kind of euthanasia – even under the strictest and explicit conditions – will open the floodgates. The value of life will be depreciated and made subordinate to considerations of economic efficacy and personal convenience. Murders, disguised as acts of euthanasia, will proliferate and none of us will be safe once we reach old age or become disabled.

Years of legally-sanctioned euthanasia in the Netherlands, parts of Australia, and a state or two in the United States (living wills have been accepted and complied with throughout the Western world for a well over a decade now) tend to fly in the face of such fears. Doctors did not regard these shifts in public opinion and legislative climate as a blanket license to kill their charges. Family members proved to be far less bloodthirsty and avaricious than feared.

Conclusions:

As long as non-voluntary and involuntary types of euthanasia are treated as felonies, it seems safe to allow patients to exercise their personal autonomy and grant them the right to die. Legalizing the institution of “advance directive” will go a long way towards regulating the field – as would a new code of medical ethics that will recognize and embrace reality: doctors, patients, and family members collude in their millions to commit numerous acts and omissions of euthanasia every day. It is their way of restoring dignity to the shattered lives and bodies of loved ones.

Titanic, or A Moral Deliberation

Titanic, or A Moral Deliberation

The film “Titanic” is riddled with moral dilemmas. In one of the scenes, the owner of Star Line, the shipping company that owned the now-sinking Unsinkable, leaps into a lowered life-boat. The tortured expression on his face demonstrates that even he experiences more than unease at his own conduct: prior to the disaster, he instructed the captain to break the trans-Atlantic speed record. His hubris proves fatal to the vessel. Moreover, only women and children were allowed by the officers in charge into the lifeboats.

But the ship’s owner was not the only one to breach common decency and ethics.

The boats could accommodate only to half the number of those on board and the First Class, High Society passengers were preferred to low-life immigrants under deck and other Third Class passengers.

Why do we all feel that the owner should have remained aboard and faced his inevitable death? Because we judge him responsible for the demise of the ship. His disastrous interference – motivated by greed and the pursuit of celebrity – was a crucial contributing factor. The owner should be punished for what he had done, we feel. This closure intuitively appeals to our sense of natural justice.

Would we have rendered the same judgment had the Titanic’s fate been the outcome of accident alone? If the owner of the ship had had no contribution to the circumstances of its horrible end – would we have still condemned him for saving his life? Less severely, perhaps. So, the fact that a moral entity had acted (or omitted, or refrained from acting) is essential in determining its future rewards or punishments and in dispensing them.

The “product liability” approach also fits here. The owner (and his “long arms”: manufacturer, engineers, builders, etc.) of the Titanic were deemed responsible because they implicitly contracted with their passengers. They made a representation (which was explicit in their case but is implicit in most others): “This ship was constructed with knowledge and forethought. The best design was employed to avoid danger. The best materials to increase pleasure.”

That the Titanic sank was an irreversible breach of this contract. In a way, it was an abrogation of duties and obligations. The owner/manufacturer of a product must compensate those consumers whose product harms in any manner that they were not explicitly, clearly, visibly and repeatedly warned against. Moreover, he should even make amends if the product fails to meet the reasonable and justified expectations of consumers, based on such warrants and representations.

Compensation can be either in kind (as in more ancient justice systems) or in cash (as in modern Western civilization). The product called the “Titanic” took away the lives of its end-users. Our “gut instinct” tells us that the owner should have paid in kind. Faulty engineering, insufficient number of lifeboats, over-capacity, hubris, passengers and crew not drilled to face emergencies, extravagant claims regarding the ship’s resilience, contravening the captain’s professional judgment – all these seem to be sufficient grounds to sentence the owner to death on his own sinking product.

But shouldn’t the hapless owner have availed his precious place to women and children? Should not he have obeyed the captain’s orders (the marine law)? Should he willingly have succumbed to rules of conduct that put his life at risk?

The reason that the lives of women and children are preferred to men in salvage situations is because they represent the future. They are either capable of bringing life to the world (women) – or of living longer (children). Societal etiquette reflects the arithmetic of the species, in this (and in many another) case.

But if this were entirely and exclusively so, then young girls and female infants would have been preferred to all other groups of passengers. Old women would have been left with the men to die. That the actual (and declared) selection processes on the Titanic differed from our theoretical considerations says a lot about the vigorousness and applicability of our theories – and even more about the real world.

The owner’s behavior may have been deplorable – but it, definitely, was natural. He put his interests (his survival) above the concerns of his society and his species. Most of us would have done the same under the same circumstances.

The owner of the ship – though “Newly Rich” – undoubtedly belonged to the First Class, Upper Crust, Cream of Society passengers. These were treated to the lifeboats before the passengers of the lower classes and decks. Was this a morally right decision?

For sure, it was not politically correct, in today’s terms. Class and money distinctions were formally abolished three decades ago in the enlightened West. Discrimination in now allowed only on the basis of merit (on the basis of one’s natural endowments).

But, why should we think one basis for discrimination (merit) preferable to another (money or property)? Can we eliminate discrimination completely and if it were possible, would it have been desirable?

The answer, in my view, is that no basis for discrimination can hold the moral high ground. They are all morally problematic because they are deterministic and assign independent, objective, exogenous values to human lives. On the other hand, we are not born equal, nor do we proceed to develop equally, or live under the same circumstances and conditions. It is impossible to equate the unequal.

Discrimination is not imposed by humans on an otherwise egalitarian world. It is introduced by the world into human society. And the elimination of discrimination would constitute a grave error. Inequalities among humans and the ensuing conflicts are the fuel that feeds the engines of human development. Hopes, desires, aspirations and inspiration are all the derivatives of discrimination or the wish to be favored, or preferred to others.

Disparities of means create markets, labour, property, planning, wealth and capital. Mental inequalities lead to innovation and theory. Knowledge differentials are at the heart of educational institutions, professionalism, government and so on. Osmotic and diffusive forces in human society are all the results of incongruence, asymmetries, disparities, differences, inequalities and the negative and positive emotions attached to them.

The Titanic’s First Class passengers were preferred because they paid more for their tickets. Inevitably, a tacit portion of the price went to amortize the costs of “class insurance”: should anything bad happen to this boat, persons who paid a higher price will be entitled to receive superior treatment. There is nothing morally wrong about this. Some people get to sit in the front rows of a theatre, or to travel in luxury, or to receive better medical treatment (or any medical treatment) precisely because they can afford it.

There is no practical or philosophical difference between an expensive liver transplant and a place in a life boat. Both are lifesavers. A natural disaster is no Great Equalizer. Nothing is. Even the argument that money is “external” or “accidental” to the rich individual is weak. With the exception of pampered heirs and scions of old families – a minority – most rich people work hard for their wealth.

Often, people who marry money are judged to be insincere or worse (cunning, conspiring, evil). “He married her for her money”, we say, as though the owner and her money were two separate things. The equivalent sentences: “He married her for her youth or for her beauty or for her intelligence or for her erudition” sounds “wrong” by comparison. These are legitimate reasons to get married. Money isn’t.

But youth and beauty are more transient than money. As opposed to hard cash, these qualities are really accidental because the beneficiary is not responsible for “generating” them and can do nothing to preserve them.

Money, on the other hand, is generated or preserved (or both) owing to the personality of its owner. Owning, increasing, and preserving one’s wealth reflects more profoundly on one’s personality than youth, beauty and many other (transient or situation-dependent) “character” traits. Money is an integral part of its owner and a reliable indicator of his mental disposition. It is, therefore, a valid criterion for discrimination and for choice.

The other argument in favor of favoring the first class passengers is their contribution to society. A rich person contributes more to his society in the short and medium term than a poor person. Vincent Van Gogh may have been a million times more valuable to humanity, as a whole, than his brother Theo – in the long run. But in the intermediate term, Theo made it possible for Vincent and many others (family, employees, suppliers, their dependants, and his country) to survive by virtue of his wealth. Rich people feed and clothe poor people directly (through employment or charity) and indirectly (through taxation). The opposite, alas, is not the case.

Admittedly, this argument is somewhat flawed because it does not take time into account. We have no way to predict the future with any certainty. Each person carries the Marshall’s baton in his bag, the painter’s brush, the author’s fables. It is one’s potential that should count – not one’s standing in life. A selection process, which preferred Theo to Vincent would be flawed. In the long run, Vincent proved more beneficial to human society and in more ways – including financially – than Theo could have ever been.

But, in the absence of omniscience and precognition, all we can do is to prefer those who have proven themselves (the rich) to those who haven’t (the poor) – and those who can create life or live it (women and children) to those who can’t or have (men and the elderly).

Appendix – On Causation and Causality

And yet, the real question is this : why should anyone pay for his actions?

First, we must confront some thorny issues, such as determinism. If there is no free will, there can be no personal responsibility. Another problem is the preservation of personal identity: are the person who committed the act and the person who is made to pay for it – one and the same? If the answer is in the affirmative, in which sense are they the same, the physical, or the mental? Is the “overlap” between the two only limited and probabilistic?

We can assume, for this discussion’s sake, that personal identity is undeniably and absolutely preserved and that there is free will and, therefore, that people can predict the outcomes of their actions, to a reasonable degree of accuracy and that they elect to accept these outcomes prior to the commission of their acts or to their omission.

This does not answer the question, though. Even if there were a contract signed between the agent (acting person) and the world, in which the person willingly, consciously and intelligently (without diminished responsibility or capacity) accepted the future outcomes of his actions, the question would still remain: why should it be so? Why cannot we conceive of a world in which acts and outcomes are divorced? It is because we cannot believe in a world devoid of causality.

Causality is a relationship between two things, or, rather, events, the cause and the effect, one generating or produces the other. The first is the latter’s efficient cause and it acts upon it (it acts to bring it about) through the mechanism of efficient causation.

A cause can be direct (mediated by a physical mechanism or process) or merely explanatory (historical cause in a narrative). Of Aristotle’s Four Causes (Formal, Material, Efficient and Final), only the efficient cause creates something distinct from itself.

The causal discourse, therefore, is problematic (how can a cause lead to an effect, indistinguishable from itself?). Singular Paradigmatic Causal Statements (Event A caused Event B) differ from General ones (Event A causes Event B). Both are inadequate in dealing with mundane, routine, causal statements because they do not reveal an overt relation between the two events discussed.

Moreover, in daily usage we treat facts (as well as events) as causes. Not all the philosophers are in agreement regarding factual causation. Davidson, for instance, admits that facts can be relevant to causal explanations but refuses to accept them as proper reasons. Acts may be distinct from facts, philosophically, but not in day-to-day regular usage. Laymen (the vast majority of humanity, that is) perceive them to be the same things.

Pairs of events that are each other’s cause and effect are accorded a special status. But, that one event follows the other (even if invariably) is insufficient grounds to label them “cause and effect”. This is the famous “Post hoc, ergo propter hoc” fallacy. Other possible relations between the two events must be weighed and the possibility of common causation must be seriously contemplated.

Such sequencing is, conceptually, not even necessary: simultaneous causation and backwards causation are part of modern physics, for instance. Time seems to be irrelevant to the status of events as cause or effect, though both time and causation share an asymmetric structure (A causes B but B does not cause A).

Still, the direction (the asymmetry) of the causal chain is not of the same type as the direction (asymmetry) of time. The former is formal, the latter, presumably, physical, or mental. A more serious problem, to my mind, is the converse: what sets apart causal (cause and effect) pairs of events from other pairs in which both member-events are the outcomes of a common cause?

Event B can invariably follow Event A and still not be its effect. Both events can be the effects a common cause. A cause either necessitates the effect, or is a sufficient condition for its occurrence. The sequence is either inevitable, or possible. In short, we know little that is certain about causality.

Here, philosophers diverge. Some say (following Hume’s reasoning and his constant conjunction relation between events) that a necessary causal relation exists between events when one is the inevitable outcome (inevitably follows) the other. Others propound a weaker version: the necessity of the effect is hypothetical or conditional, given the laws of nature.

Put differently: to say that A necessitates (causes) B is no more than to say that it is a result of the laws of nature that when A happens, so does B. Hempel generalized this approach. He said that a statement of fact (whether a private or a general fact) is explained only if deduced from other statements, at least one of which is a statement of a general scientific law. This is the “Covering Law Model” and it implies a symmetry between explaining and predicting (at least where private facts are concerned). If an event can be explained, it can be predicted and vice versa. Needless to say that Hempel’s approach did not get us nearer to solving the problems of causal priority and of indeterministic causation.

The Empiricists went a step further. They stipulated that the laws of nature are contingencies and not necessary truths. Other chains of events are possible where the laws of nature are different. This is the same tired regularity theory in a more exotic guise. The Empiricist treatment of causality is a descendant of Hume’s definition of causality: “An object followed by another and where all the objects that resemble the first are followed by objects that resemble the second.”

According to Hume, nothing in the world is a causal necessity, events are only constantly conjoined. Regularities in our experience condition us to form the idea of causal necessity and to deduce that causes must generate events. Kant called this latter deduction “A bastard of the imagination, impregnated by experience” with no legitimate application in the world.

This bastard also constituted a theological impediment. God is considered to be “Causa Sui”, His own cause. But any application of a causal chain or force, already assumes the existence of a cause. This existence cannot, therefore, be the outcome of the use made of it. God had to be recast as the uncaused cause of the existence of all things contingent and His existence necessitated no cause because He, himself, is necessary.

This is flimsy stuff and it gets even flimsier when the issue of causal deviance is debated. A causal deviance is an abnormal, though causal, relation between events or states of the world. It mainly arises when we introduce intentional action and perception into the theory of causation.

Let us revert to the much-maligned owner of the sinking Titanic. He intended to do one thing and another happened. Granted, if he intended to do something and his intention was the cause of his doing so – then we could have said that he intentionally committed an act. But what if he intended to do one thing and out came another? And what if he intended to do something, mistakenly did something else and, still, accidentally, achieved what he set out to do?

The popular example is if someone intends to do something and gets so nervous that it happens even without an act being committed (intends to refuse an invitation by his boss, gets so nervous that he falls asleep and misses the party). Are these actions and intentions in their classical senses? There is room for doubt.

Davidson narrows down the demands. To him, “thinking causes” (causally efficient propositional attitudes) are nothing but causal relations between events with the right application of mental predicates which ascribe propositional attitudes supervening the right application of physical predicates. This approach omits intention altogether, not to mention the ascription of desire and belief.

Leveraging Six Sigma in IT

Leveraging Six Sigma in IT

INTRODUCTION
CHANGING BUSINESS PARADIGM
The International Data Corporation (IDC) predicted that the worldwide outsourcing market would grow from 0 billion in 1998 to 1 billion in 2003, with a compound annual growth rate (CAGR) of 12.2 percent.
The 1990s witnessed a massive spurt in service outsourcing, particularly in the IT services sector.
Over 60% of the Fortune 500 companies, located in Europe and America are outsourcing their IT operations offshore to developing economies like Asia, Africa, the Carribean and Latin America with a view to achieve cost reduction. The primary contributor to cost reduction was the wage disparity between outsourcing companies and the service providers. This first phase of outsourcing leveraging wage arbitrage is towards completion –with a large chunk of cost reduction potential being realized.
Today, outsourcing companies, have identified quality and productivity as the key differentiators in evaluating service providers. These parameters are of prime importance since most software solutions have relatively small payback periods. Service providers also bring complementary knowledge, ideas, and business methodologies, and enable outsourcing companies to concentrate on core competencies. These benefits in addition to cost reduction are turning the tide in favour of outsourcing.
It is difficult to leverage these benefits in the absence of a defined set of tools and techniques. Application of process improvement techniques like Six Sigma can help realize these benefits. This paper examines the application of Six Sigma to the IT services industry holistically.

SIX SIGMA – AN OVERVIEW
“Contrary to what some believe, the goal of Six Sigma is not to achieve six sigma levels of quality.
Six Sigma is about improving profitability, although improved quality and efficiency are immediate by-products of Six Sigma.” – Mikel Harry
KEY SIX SIGMA CONCEPTS
Bill Smith, a senior engineer and scientist at Motorola introduced the Six Sigma concept in 1986, to standardize the way defects are counted. Motorola extended the benefit of its Six Sigma expertise to other organizations via the Motorola University. At its core, Six Sigma revolves around the following key concepts.

  • Critical To Quality (CTQ) – Attributes most important to the customer
  • Outside In approach – Looking at internal processes from the customer’s perspective and changing them accordingly
  • Defect – Any event that does not meet the specifications of a Critical to Quality (CTQ) attribute
  • Defect Opportunity– Any event, that provides a chance of not meeting customer requirements and which can be measured
  • Defective – A unit of product containing one or more defects
  • Transfer Function – Y = f (X1, X2, X3….Xn), where Y is the dependent or response variable and Xs are independent or predictor variable that control the performance of Ys. Focus of Six Sigma is to control Xs and not Ys.

Before moving on to the application of Six Sigma to IT services, let us first understand the Six Sigma methodology.
The evolution of the Six Sigma methodology can be explained with a brief description of sigma.
· “s” is a Greek alphabet that denotes standard deviation. Standard deviation is a measure of dispersion in a given data set. The values (of the data set) are equally distributed on either side of the mean i.e. above and below. We delineate some data points within that timeline. The sigma value is measured against this. As we move farther away from the mean on the timeline, the sigma value goes on increasing.
· Process Sigma (Z) – Measure of process capability. Process capability is process’ ability to meet customer requirements.
· The Six Sigma methodology focuses on reducing the variation in any process and aligning the process mean with customer specified target. A process can be said to be at Six Sigma level if the nearest Customer Specification limit is six standard deviations away from mean of the process.
Six Sigma is a business strategy that results into achieving a near zero defect level. The sigma levels and their corresponding defects per million opportunities (DPMO) give an idea of the quantum of improvement in yield with Six Sigma.
The fundamental objective of the Six Sigma methodology i.e. implementation of a measurement based strategy to propel process improvement and reduce process variation is accomplished by means of two strategies – DMAIC (Define, Measure, Analyze, Improve and Control) and DMADV (Define, Measure, Analyze, Design and Verify).
DMAIC is an improvement system for existing products or processes. Fundamentally DMAIC is –

  • Define – Define project goals and customer deliverables based on voice of customer (VOC).
  • Measure – Measure the process to evaluate current performance with respect to customer requirements.
  • Analyze – Analyze and determine root cause(s) of poor performance.
  • Improve – Devise and evaluate multiple solutions to improve performance and eliminate defects; Pilot solution and compare performance.
  • Control – Quantify improvements; Implement control plans to sustain desired performance.
    Design for Six Sigma (DFSS) is used to design or re-design a new product or service. One popular DFSS methodology is called DMADV. Fundamentally DMADV is –

  • Define – Define the scope of the project and initiate the project.
  • Measure – Measure customer needs and specify the CTQ parameters.
  • Analyze – Analyze the concepts that meet customer needs (CTQs).
  • Design – Develop a detailed design with respect to the customer needs and identify control plans.
  • Verify – Test and verify design performance with respect to customer CTQs.

DMAIC focuses on only one or two CTQ (Critical To Quality) parameters at a time whereas DMADV focuses on an entire set of CTQs for a given product / service or process.

SIX SIGMA IN IT
“Eighty-five percent of the reasons for failure to meet customer expectations are related to deficiencies in systems and process rather than the employee. The role of management is to change the process rather than badgering individuals to do better” – Dr. DemingSeveral process improvement methodologies like Six Sigma, Total Quality Management (TQM), Quality Circles, Taguchi, Statistical process control, etc. are being successfully implemented in the manufacturing industries sector. It was perceived that such improvement methodologies are ineffective in the IT services industry. GE, pioneers of Six Sigma implementation in a non-manufacturing set-up, has estimated benefits of the order of billion during the first five years of implementation.
Some commonly made arguments against the effectiveness of Six Sigma in IT services sector were

  • Software processes are difficult to measure.
  • Software development is people intensive work that needs creativity.
  • Software development is not a repeatable process.
  • Six Sigma theories are based on assumption of normal probability distribution and Software processes cannot be included in this category.

Though these factors are true in some sense, the Six Sigma methodology can still be applied to IT processes.
The software processes are definitely difficult to measure but it’s not an impossible task. Industry leaders like IBM and institutions like Software Engineering Institute have designed and published many metrics for software processes for the benefit of the entire industry. Capability Maturity Models prescribe the quantitative management processes as one of the Key Process Areas at level 4. Lot of books and other material is available publicly to choose right metrics from. Six Sigma offers strong tools like Quality Function Deployment (QFD), CTQ flow-down and other templates to convert high-level VOC into measurable CTQs.
90% of the processes in a software services company are repeatable and can be improved by the process improvement DMAIC methodology. The DFSS methodology can be applied to the remaining
5-10 % of the processes, which involve creativity.
It is true that Six Sigma concepts evolved with normal distribution. But, Six Sigma tools can be easily adapted to handle processes having non-normal distribution
Having discussed the arguments supporting the applicability of Six Sigma to IT processes, let us make an attempt to understand the applicability of Six Sigma to the processes that are an integral part of IT services.
CORE DELIVERY PROCESSES
The software development life cycle (SDLC) consists of four phases – Analysis, Design, Coding and
Testing. Along with these core phases, processes like defect prevention, project management,
Software Quality Assurance (SQA), Reviews, etc. are an integral part of the Quality Management System of any IT service provider. The effectiveness of these core processes directly impact the
CTQ parameters. There is a large scope for improvement in these processes in most IT companies. Six Sigma can be deployed to improve these processes.
One of the key factors in deploying Six Sigma is identifying the “Y” metrics (dependants). But for core processes this becomes simpler since historical data for key metrics such as review efficiency, review effectiveness, productivity, defect density, schedule variance and effort variance are already available. After prioritization, critical poor performing metrics can be taken as Six Sigma DMAIC projects.
Six Sigma DFSS methodology can be applied for software development projects. Six Sigma in
SDLC helps in making the software manufacturing process more predictable and ensuring that all
Customer CTQs are met. Some Sigma tools that can be applied in this methodology are –

  • Quality Function Deployment (QFD) helps in converting the high-level customer requirements (VOC) into detailed program specifications. Use of QFD ensures that no requirements are missed and it also helps in prioritizing the software elements.
  • Failure Mode Effect Analysis (FMEA) is a tool that provides effective risk management for the entire SDLC, and identifies the probable failure modes of software at design phase. This initiates corrective action on the design.
  • Pugh matrix enables software developer / analyst to compare different concepts with reference to customer CTQs and create strong alternative concepts from weaker concepts Scorecard is a predictive tool used for:
    1. Predicting final quality (Y metrics) based on process (X) metrics
    2. Quantitative Risk Assessment Identification of High Defect Drivers Linkage from Customer CTQs at lower levels in a flow down
    3. Application of Design of Experiments in software testing is an emerging trend. Software testing based on orthogonal array, detects most possible defects at a fractional testing time.

DELIVERY SUPPORT PROCESSES
The processes that are value enablers are equally important to consistently deliver best quality service to the customers. These processes consist of infrastructure and network services, Resource Management, HR processes, Finance and accounting, Training, Central Quality organization etc.
Efficiency and effectiveness of delivery support processes directly or indirectly contribute to the productivity of core delivery processes. Processes like infrastructure and network maintenance are extremely important for offshore development / BPO models.
Six Sigma DMAIC projects can be forked to improve any or all the processes mentioned above.
Some Y metrics for Delivery support processes are

  • Resource turnaround time
  • Cycle time for recruitment
  • Defects in payroll processing
  • On time invoicing
  • Accuracy of invoicing
  • Network response time
  • Network utilization
  • Training effectiveness

In effect, Six Sigma has a profound impact on the most critical resource in IT industry i.e. human resources.
PRODUCT QUALITY ATTRIBUTES
It is of paramount importance to deliver a high quality software product. The application of Six Sigma to the above two areas – Core Delivery Processes and Delivery Support Processes, directly or indirectly contributes to product quality. Metrics like response time, resource usage (Memory / CPU), and resources availability are critical to the quality of a software application. Six Sigma methodologies can be molded to optimize performance in keeping with the required metrics.
The Six Sigma DFSS methodology enables us to predict product performance in the initial design stage so that adequate control measures are in place. Figure 3 depicts the impact of any error or missed requirement in design phase on the cost in the later phases of the software development lifecycle. It has been proved that time taken to fix a design or requirements defect during testing phase needs about 20 times of rework effort as compared to a defect fixed right at the induction phase. Here, deployment of Six Sigma can play a major role to reduce or control the development costs.
The DFSS methodology as applicable for software processes cannot be directly mapped to DFSS methodology as implemented in manufacturing processes. In manufacturing, a product once designed is produced for years together. Whereas, in case of software development, a software design is manufactured (coded, to be precise) only once. This makes the application of DFSS in software development tougher. In a typical manufacturing setup, the crux of DFSS lies in achieving manufacturability at Six Sigma quality levels. For a manufactured product, the design budget might be flexible but in the case of software solutions, the budget for design is very limited and all the CTQs must be met in the given budget. The DFSS rigor ensures that the software is designed, coded and approved with minimum rework.
The DMAIC methodology can be applied to improve the Product Quality Attributes of existing applications, too. Many a times, as the user base increases or if the application is deployed in a global environment, response time decreases. Round the clock availability of application has also become a critical issue in today’s global work culture and BPO scenario. DMAIC projects can be implemented to tackle such issues and find a cost effective fix. Improving reliability measures like MTBF (Mean time between failures) and MTTR (Mean Time to Repair) can be other focus areas of DMAIC improvement projects.
CUSTOMER’S PROCESSES
Most IT companies provide “End to End” solutions to their clients and therefore enjoy a long-term relationship with their customers. This has benefited the service providers in acquiring significant domain knowledge. The consultants possess fairly good amount of tacit knowledge about the client’s core business processes in addition to IT skills. Six Sigma tools and techniques provide an excellent channel to develop a basis for solution based consulting.
Six Sigma methodologies can help core business processes as well as IT processes. Owing to the consultant’s exposure to customer’s processes through IT support, they are familiar with the best functioning processes, processes which are not operating efficiently and those processes which have reached entitlement. This enables prioritization to tackle the relevant processes and this prioritization of improvements makes implementation of Six Sigma easier.

PATNI’S APPROACH
Patni’s Process Consulting Practice offers customers a complete range of process improvement related solutions that covers the best of process/quality models and applied proven methodology and practices. PCP facilitates IT organizations to move to newer levels of business excellence through incremental process improvements that are either benchmarked against established models
(ISO/CMM) or focused on specific process areas of improvement.
With over 15 years of experience, Patni’s consultants provide the customer the high-quality and cost-effective solutions by offering the following services:

  • Process Diagnostics
  • Model Based Process Improvement Services
  • Focused Approach to Process Consultation
  • Six-Sigma Methodology for Process Improvement consultation
  • Quality Management Practices & Training
  • Customized solutions

SIX SIGMA METHODOLOGY FOR PROCESS IMPROVEMENT
Patni embarked upon its Six Sigma implementation initiative in 1998 in select software project delivery areas. In the year 2000, Six Sigma was implemented in one strategic business unit (SBU).
Eventually, it was implemented at the company level. As of June 2003, Patni has a team of over 30 certified Black belts, over 300 certified Green belts and more than 1100 trained Green Belts.
Patni Green Belts executed over 350 projects spanning across all SDLC processes, which resulted in benefit of more than $ 2mn to customers in addition to productivity gains and quality improvement in all SDLC processes. The projects focused on areas such as reduction in batch cycle time, testing time and time spent in resolving production abends. It also focuses on improving On Time Delivery, automation of customer’s processes and optimizing CPU utilization and so on.
Patni’s Six-Sigma consultation services endeavor to improve customer’s quality management processes and their returns on investment (ROI) by reducing operational expenses.
Certified Six Sigma practitioners transfer critical knowledge and skills to the client organization to lay the foundation for lasting improvements in the dynamic business environment. Patni facilitates optimization of processes using the Six Sigma methodologies (DMAIC/DMADV).
Patni’s portfolio of Six Sigma consultancy services includes:

  • Performance Improvement
  • Process Improvement
  • People Development

Patni has developed its own specific Six Sigma based methodology to execute development projects and maintenance projects respectively.

BUSINESS VALUE
DEPLOYING SIX SIGMA FOR PROCESS IMPROVEMENT
Conseco, Inc., one of America’s leading sources for insurance, investment and lending products offers its customers better products as an exchange to their current policies. The exchange process, involves the following two steps:

  • Field related tasks like approaching the customer, to get his/her acceptance, and complete the necessary paperwork.
  • Back office work in policy administration

The objective of the solution was to process 10,000 applications between August -December 2001 with the existing workforce of 16 people.
Patni implemented the Six Sigma , process improvement DMAIC methodology in the following manner.

  1. One Black Belt resource from Patni was deployed at Consesco site to facilitate process improvement using Six Sigma methodology.
  2. A model was developed to project staffing needs to process the desired number of applications.
  3. Formulate new process definition, Implementation Plan, Documentation/Control Plan.

Patni deployed Six Sigma successfully by reducing the cycle time for processing application forms thereby increasing productivity.
DEPLOYING SIX SIGMA FOR ON TIME DELIVERY (OTD)
Patni has a project based Service Level agreement (SLA) about the task delivery schedule with one of its clients. On Time Delivery (OTD) is the metric used for measuring delivery schedule. Patni undertook the SPAN – Six Sigma DMAIC project to realign service levels for OTD and convert them to the following two parameters:

  • SPAN – A metric used to measure the variation in deliveries beyond the customer stated date
  • Median – A metric which specifies where the project is centered

Patni implemented the SPAN – DMAIC project in the following manner:

  1. High level discussions were held to understand and gather the factors affecting high SPAN.
  2. The Six Sigma- DMAIC methodology was implementd for process improvement.
  3. Span Caluclator and Minitab Tools like Gauge R&R, Normality Test, Segmentation, Pareto,

Regression and control Charts were used to undertake complex calculations.
Patni deployed the SPAN – Six Sigma DMAIC project by reducing SPAN and Median and consistently meeting customer delivery dates. It successfully employed usage of statistical tools to track the causes of high process variation.

CONCLUSION

  • Six Sigma can be successfully applied to the IT services industry where human resources is a critical input
  • Availability of reliable data and metrics is crucial to successful implementation of Six Sigma in IT arena
  • In IT services sector, benefits of Six Sigma can be accrued from
    1. Internal process improvement
    2. Product Quality improvement
    3. Better predictability
    4. Customer satisfaction improvement due to improved cycle time, waste reduction
  • Though some of the processes in IT industry may not fall under normal probability distribution, other quantitative and qualitative tools could be used to improve the process.
  • Focus of DFSS methodology on Analyze and design phase significantly reduces the defects, rework during testing and hence productivity during the rollout phase
  • Six Sigma rigor is a key differentiator in solution based consulting

ABOUT THE AUTHOR
Rajesh Naik
Rajesh Naik has over 12 years of experience, including more than 6 years in the field of quality initiatives like Malcom Baldrige model, Balanced Scorecard, Six Sigma and Quality circles. He assumed Six Sigma black belt role at Patni in 2001 and was part of core Six Sigma team that rolled out Six Sigma in Patni-GE Global Development Center. During this tenure, his key role has been to identify improvement opportunities, coach / mentor the green belts for project completion, training of the consultants that include customizing Six Sigma training material for software professionals, deliver training. He successfully designed and launched the DFSS approach for Software development projects within the SBU. He also, worked on cycle time improvement project for a leading insurance company in US.
Rajesh holds a post graduation in Software technology from NCST, Mumbai after graduation in Industrial Engineering.

Financing Strategies For Investors

Financing Strategies For Investors

Real estate investors can be broken down into three categories with the distinctions between them based on the length of time the property is held. On the short end, you’ve got flippers. These guys look for properties on the cheap, maybe put some money into fixing them up and then selling for a profit. For the most part, they have no intention of renting the property out and work as quickly as possible to complete the deal. This category represents a lot of the people chasing foreclosures and probate sales. From the lending perspective, their biggest motivators are low down payments and NO prepayment penalties. They’ll even pay exorbitant Subprime interest rates to put these deals together without penalties.

Next up, you’ve got speculators. These guys look for quickly appreciating markets. The idea is to get in, buy a bunch of properties, keep them for 3 to 5 years and then move on to the next booming market. For that length of time, they have to rent out their properties but are not particularly interested in paying down the principle balance on the mortgage. In fact, if they’re confident in the appreciation potential, they may be willing to accept negative amortization loans in order to keep the cash flow on their properties positive.

The last category is investors. These guys try to accumulate a portfolio of properties and have the rental income pay down the principle balance over time. The idea, obviously, is to own a number of properties outright or with minimal mortgages and enjoy positive cash flow on each. From the lending perspective, these investors are looking for longer term loan products like intermediate ARMs or 30-year fixed mortgages. Clearly, a property with a 30-year fixed mortgage and a sustainable cash flow will eventually be paid off, leaving just the property taxes and insurance behind.

So, let’s talk about each of these a bit more. A lot of flippers do this stuff full time. In terms of underwriting, it makes it a lot easier if they’ve got a real job. But if they don’t, they don’t have a verifiable source of income either. Of course, if they’ve done it for more than two years, we can say they’re self-employed and get the loan done that way. But if they’re new at the game – and many of them are – we almost always have to use a No Doc program. That’s the lowest level of documentation and the pricing reflects the increased risk.

Meanwhile, if we say they’re self-employed, they obviously have an investment property as well as a primary residence – and maybe more than one – all without any rental income. So they’re supporting two houses. That means we’d have to show a VERY high income to fit within debt ratio limitations. The moral to the story is the vast majority of these deals end up in Subprime programs because it’s easier to get approvals, particularly for low or no down payment programs.

Now, the question is: does it matter? Well, not really because you’re only planning to keep the property for a few months anyway, so the monthly payment isn’t that important. Yes, the payment may be big but you only have to make three or four of them (hopefully) before you can get out. It’s just another cost of doing business. By the way, I’m not saying A-paper and Alt-A programs are impossible for these types of deals. They’re just harder to qualify for.

What about the speculators? People buying for 3 to 5 years. Well, the negative amortization Option ARMs are extremely popular. I’m not a big fan of Option ARMs because they’re risky and largely misunderstood by those who get into them. The big attraction the low initial monthly payment but that’s balanced by the resulting negative amortization and an interest rate that’s variable from the very first month.

Anyway, they do have advantages for speculative real estate investors because they make it more possible to have positive cash flow on investment properties. So we should really take a moment or two to fully understand how they work. First and foremost, the initial payment is an artificially low payment. In many cases, it’s based on a 1% interest rate but that definition is based more on marketing than reality. Fact is; the minimum payment is less than the accrued interest so the mortgage balance goes up every single month.

This minimum payment doesn’t stay the same forever. It’s fixed for the first 12 months and after that, it increases by 7.5%. Then it’s fixed for another 12 months and increases by another 7.5%. The minimum payment increases by 7.5% each year for the first seven years OR until the loan balance has reached its ceiling. Depending on the program, these loans can grow to either 110% or 125% of the original loan balance. Actually, the ones that can go as high as 125% are becoming increasingly rare. Most will only allow you to go as high as 110%. Anyway, once you’ve reach that ceiling, the loan starts amortizing right away – and that means a BIG payment shock at that point.

For obvious reasons, these loan programs are only justified if the real estate market is appreciating FASTER than the loan is growing. Although it depends on where interest rates go, most of these loan programs grow by 2% or 3% each year if you only make the minimum payment. So if the real estate market is appreciating faster than that, you’re still building equity. If not, you’re losing money every month. That’s the scary part. If it ever comes to that, you actually SAVE money by selling today – unless you’re okay making the larger interest only payment. And don’t forget the interest rates on these programs are variable so the interest only payment can be different each and every month.

But we also have to keep in mind that these loan programs will only go as high as 95% financing. In fact, on investment properties, some lenders won’t even go that high. Depends on the lender. Also, the 95% financing is generally split into two separate loans. The 1% start rate loan usually only applies to the first 75%. The 20% second mortgage makes up the difference and is usually a fully amortizing loan with a much higher interest rate. Sometimes, you can do an 80/15 but most are 75/20s. So that means you have to come up with at least 5% down payment to qualify for one of these loans. That makes it more difficult to buy more and more, unless you continuously refinance and take cash out of other properties.

The speculative investors who use these programs are trying to keep their properties cash positive, or as close to cash positive as possible. But as we discussed a moment ago, the payments rise by 7.5% each year. After three or four years, the payment will be 24% or 33% higher (respectively) than it was at the beginning. If the market is still appreciating strong at that point, the investor may want to keep the property for another three or four years and refinance into another identical loan product, bringing the payment back down to the initial 1% point again. Doing so would increase the negative amortization but it may also keep the cash flow positive on that property.

You have to understand how underwriters evaluate investment properties. It really doesn’t matter how much equity you have. They only look at the cash flow impact of owning it. And you can show that impact in one of two ways. You can show lease agreements on the properties but the underwriters will always take the monthly rental figure and mark it down by 25% to account for periodic vacancies. It’s called the occupancy factor and most loan programs give you credit for 75% of the rental income listed on lease agreements. Incidentally, many Subprime programs will give you 90% or even 100% of such rental income – another example of easier Subprime guidelines.

The other way to show the cash flow impact is with the Schedule E of your federal tax return. That schedule details the income you make from rental properties but you clearly have an incentive to reduce that income as much as possible to limit your tax liability. Meanwhile, for underwriting, you want to show as much income as possible. So there’s a conflict there. Point is, there are disadvantages with both methods and you should usually look at both options to see which one will calculate the highest.

Each time you have a property that’s got negative cash flow, you have to show more income to squeeze into the same debt-to-income limitations for the next loan. It makes sense. If you’re subsidizing a property with your own income, it represents a monthly expense just like a car payment. So each time you add another property you have to subsidize, you have to show more income to qualify for the next loan. Depending on how much you’re subsidizing, you will quickly be claiming more income than you actually earn and will eventually be considered unreasonable by underwriters.

If a speculator wants to continue accumulating properties in hot markets, one of his or her top priorities is staying cash positive, or as close to it as possible. That priority exists for long-term investors as well but so does the repayment of the mortgage balance. As a result, these investors tend to consider more factors than just annual real estate appreciation. Appreciation is attractive but so is a healthy rental market, and the rental market depends on the types of jobs available in the local area and the health of the local economy.

There are plenty of companies that study this type of information and provide various reports and ratios to help identify healthy markets. I’m sure you could go to Google and find a lot of such offerings. I recently read an article that chose Charleston SC, Jacksonville FL and Austin TX as particularly attractive markets for long-term real estate investments. All three cities have diversified economies, good wages and affordable housing. Anyway, the motivation is clearly different then speculators or flippers. Long-term investors want a stable market where they can cover an amortizing loan payment – that’s principle AND interest – with the rental income from the property.

Now, a well planned real estate investment strategy may involve more than one type of investment. For example, a long-term investor may buy a property in a hot market using a negative amortization loan and keep the property for only three or four years. After realizing some appreciation, the investor may sell the property and use the profits to pay down a mortgage on a different property in a more stable market. Perhaps the reduced mortgage balance will bring that property from a cash negative situation to a cash positive one. For the right investor, this strategy can work well even for flipped properties.

There are plenty of promoters encouraging people to take these profits and leverage them even further into more and more properties. Many of these promoters encourage negative amortization on all their properties. That’s where I have to disagree. That would’ve been fine four years ago but I just don’t believe the real estate market will continue to appreciate the way it has in recent years. Given the current market conditions, I don’t believe it makes sense to expose yourself to that much risk. If real estate goes sideways, these loans erode your equity and add volatility to the market.

There’s always a balance. That balance will definitely be different for a sophisticated investor than it will be for an average homeowner but that doesn’t mean you have to stretch it to the absolute limit. At the end of the day, the ideal situation remains; owning properties free and clear and collecting monthly rent payments on each.

Sex or Gender

Sex or Gender

“One is not born, but rather becomes, a woman.”

Simone de Beauvoir, The Second Sex (1949)

In nature, male and female are distinct. She-elephants are gregarious, he-elephants solitary. Male zebra finches are loquacious – the females mute. Female green spoon worms are 200,000 times larger than their male mates. These striking differences are biological – yet they lead to differentiation in social roles and skill acquisition.

Alan Pease, author of a book titled “Why Men Don’t Listen and Women Can’t Read Maps”, believes that women are spatially-challenged compared to men. The British firm, Admiral Insurance, conducted a study of half a million claims. They found that “women were almost twice as likely as men to have a collision in a car park, 23 percent more likely to hit a stationary car, and 15 percent more likely to reverse into another vehicle” (Reuters).

Yet gender “differences” are often the outcomes of bad scholarship. Consider Admiral insurance’s data. As Britain’s Automobile Association (AA) correctly pointed out – women drivers tend to make more short journeys around towns and shopping centers and these involve frequent parking. Hence their ubiquity in certain kinds of claims. Regarding women’s alleged spatial deficiency, in Britain, girls have been outperforming boys in scholastic aptitude tests – including geometry and maths – since 1988.

In an Op-Ed published by the New York Times on January 23, 2005, Olivia Judson cited this example

“Beliefs that men are intrinsically better at this or that have repeatedly led to discrimination and prejudice, and then they’ve been proved to be nonsense. Women were thought not to be world-class musicians. But when American symphony orchestras introduced blind auditions in the 1970’s – the musician plays behind a screen so that his or her gender is invisible to those listening – the number of women offered jobs in professional orchestras increased. Similarly, in science, studies of the ways that grant applications are evaluated have shown that women are more likely to get financing when those reading the applications do not know the sex of the applicant.”

On the other wing of the divide, Anthony Clare, a British psychiatrist and author of “On Men” wrote:

“At the beginning of the 21st century it is difficult to avoid the conclusion that men are in serious trouble. Throughout the world, developed and developing, antisocial behavior is essentially male. Violence, sexual abuse of children, illicit drug use, alcohol misuse, gambling, all are overwhelmingly male activities. The courts and prisons bulge with men. When it comes to aggression, delinquent behavior, risk taking and social mayhem, men win gold.”

Men also mature later, die earlier, are more susceptible to infections and most types of cancer, are more likely to be dyslexic, to suffer from a host of mental health disorders, such as Attention Deficit Hyperactivity Disorder (ADHD), and to commit suicide.

In her book, “Stiffed: The Betrayal of the American Man”, Susan Faludi describes a crisis of masculinity following the breakdown of manhood models and work and family structures in the last five decades. In the film “Boys don’t Cry”, a teenage girl binds her breasts and acts the male in a caricatural relish of stereotypes of virility. Being a man is merely a state of mind, the movie implies.

But what does it really mean to be a “male” or a “female”? Are gender identity and sexual preferences genetically determined? Can they be reduced to one’s sex? Or are they amalgams of biological, social, and psychological factors in constant interaction? Are they immutable lifelong features or dynamically evolving frames of self-reference?

In the aforementioned New York Times Op-Ed, Olivia Judson opines:

“Many sex differences are not, therefore, the result of his having one gene while she has another. Rather, they are attributable to the way particular genes behave when they find themselves in him instead of her. The magnificent difference between male and female green spoon worms, for example, has nothing to do with their having different genes: each green spoon worm larva could go either way. Which sex it becomes depends on whether it meets a female during its first three weeks of life. If it meets a female, it becomes male and prepares to regurgitate; if it doesn’t, it becomes female and settles into a crack on the sea floor.”

Yet, certain traits attributed to one’s sex are surely better accounted for by the demands of one’s environment, by cultural factors, the process of socialization, gender roles, and what George Devereux called “ethnopsychiatry” in “Basic Problems of Ethnopsychiatry” (University of Chicago Press, 1980). He suggested to divide the unconscious into the id (the part that was always instinctual and unconscious) and the “ethnic unconscious” (repressed material that was once conscious). The latter is mostly molded by prevailing cultural mores and includes all our defense mechanisms and most of the superego.

So, how can we tell whether our sexual role is mostly in our blood or in our brains?

The scrutiny of borderline cases of human sexuality – notably the transgendered or intersexed – can yield clues as to the distribution and relative weights of biological, social, and psychological determinants of gender identity formation.

The results of a study conducted by Uwe Hartmann, Hinnerk Becker, and Claudia Rueffer-Hesse in 1997 and titled “Self and Gender: Narcissistic Pathology and Personality Factors in Gender Dysphoric Patients”, published in the “International Journal of Transgenderism”, “indicate significant psychopathological aspects and narcissistic dysregulation in a substantial proportion of patients.” Are these “psychopathological aspects” merely reactions to underlying physiological realities and changes? Could social ostracism and labeling have induced them in the “patients”?

The authors conclude:

“The cumulative evidence of our study … is consistent with the view that gender dysphoria is a disorder of the sense of self as has been proposed by Beitel (1985) or Pfäfflin (1993). The central problem in our patients is about identity and the self in general and the transsexual wish seems to be an attempt at reassuring and stabilizing the self-coherence which in turn can lead to a further destabilization if the self is already too fragile. In this view the body is instrumentalized to create a sense of identity and the splitting symbolized in the hiatus between the rejected body-self and other parts of the self is more between good and bad objects than between masculine and feminine.”

Freud, Kraft-Ebbing, and Fliess suggested that we are all bisexual to a certain degree. As early as 1910, Dr. Magnus Hirschfeld argued, in Berlin, that absolute genders are “abstractions, invented extremes”. The consensus today is that one’s sexuality is, mostly, a psychological construct which reflects gender role orientation.

Joanne Meyerowitz, a professor of history at Indiana University and the editor of The Journal of American History observes, in her recently published tome, “How Sex Changed: A History of Transsexuality in the United States”, that the very meaning of masculinity and femininity is in constant flux.

Transgender activists, says Meyerowitz, insist that gender and sexuality represent “distinct analytical categories”. The New York Times wrote in its review of the book: “Some male-to-female transsexuals have sex with men and call themselves homosexuals. Some female-to-male transsexuals have sex with women and call themselves lesbians. Some transsexuals call themselves asexual.”

So, it is all in the mind, you see.

This would be taking it too far. A large body of scientific evidence points to the genetic and biological underpinnings of sexual behavior and preferences.

The German science magazine, “Geo”, reported recently that the males of the fruit fly “drosophila melanogaster” switched from heterosexuality to homosexuality as the temperature in the lab was increased from 19 to 30 degrees Celsius. They reverted to chasing females as it was lowered.

The brain structures of homosexual sheep are different to those of straight sheep, a study conducted recently by the Oregon Health & Science University and the U.S. Department of Agriculture Sheep Experiment Station in Dubois, Idaho, revealed. Similar differences were found between gay men and straight ones in 1995 in Holland and elsewhere. The preoptic area of the hypothalamus was larger in heterosexual men than in both homosexual men and straight women.

According an article, titled “When Sexual Development Goes Awry”, by Suzanne Miller, published in the September 2000 issue of the “World and I”, various medical conditions give rise to sexual ambiguity. Congenital adrenal hyperplasia (CAH), involving excessive androgen production by the adrenal cortex, results in mixed genitalia. A person with the complete androgen insensitivity syndrome (AIS) has a vagina, external female genitalia and functioning, androgen-producing, testes – but no uterus or fallopian tubes.

People with the rare 5-alpha reductase deficiency syndrome are born with ambiguous genitalia. They appear at first to be girls. At puberty, such a person develops testicles and his clitoris swells and becomes a penis. Hermaphrodites possess both ovaries and testicles (both, in most cases, rather undeveloped). Sometimes the ovaries and testicles are combined into a chimera called ovotestis.

Most of these individuals have the chromosomal composition of a woman together with traces of the Y, male, chromosome. All hermaphrodites have a sizable penis, though rarely generate sperm. Some hermaphrodites develop breasts during puberty and menstruate. Very few even get pregnant and give birth.

Anne Fausto-Sterling, a developmental geneticist, professor of medical science at Brown University, and author of “Sexing the Body”, postulated, in 1993, a continuum of 5 sexes to supplant the current dimorphism: males, merms (male pseudohermaphrodites), herms (true hermaphrodites), ferms (female pseudohermaphrodites), and females.

Intersexuality (hermpahroditism) is a natural human state. We are all conceived with the potential to develop into either sex. The embryonic developmental default is female. A series of triggers during the first weeks of pregnancy places the fetus on the path to maleness.

In rare cases, some women have a male’s genetic makeup (XY chromosomes) and vice versa. But, in the vast majority of cases, one of the sexes is clearly selected. Relics of the stifled sex remain, though. Women have the clitoris as a kind of symbolic penis. Men have breasts (mammary glands) and nipples.

The Encyclopedia Britannica 2003 edition describes the formation of ovaries and testes thus:

“In the young embryo a pair of gonads develop that are indifferent or neutral, showing no indication whether they are destined to develop into testes or ovaries. There are also two different duct systems, one of which can develop into the female system of oviducts and related apparatus and the other into the male sperm duct system. As development of the embryo proceeds, either the male or the female reproductive tissue differentiates in the originally neutral gonad of the mammal.”

Yet, sexual preferences, genitalia and even secondary sex characteristics, such as facial and pubic hair are first order phenomena. Can genetics and biology account for male and female behavior patterns and social interactions (“gender identity”)? Can the multi-tiered complexity and richness of human masculinity and femininity arise from simpler, deterministic, building blocks?

Sociobiologists would have us think so.

For instance: the fact that we are mammals is astonishingly often overlooked. Most mammalian families are composed of mother and offspring. Males are peripatetic absentees. Arguably, high rates of divorce and birth out of wedlock coupled with rising promiscuity merely reinstate this natural “default mode”, observes Lionel Tiger, a professor of anthropology at Rutgers University in New Jersey. That three quarters of all divorces are initiated by women tends to support this view.

Furthermore, gender identity is determined during gestation, claim some scholars.

Milton Diamond of the University of Hawaii and Dr. Keith Sigmundson, a practicing psychiatrist, studied the much-celebrated John/Joan case. An accidentally castrated normal male was surgically modified to look female, and raised as a girl but to no avail. He reverted to being a male at puberty.

His gender identity seems to have been inborn (assuming he was not subjected to conflicting cues from his human environment). The case is extensively described in John Colapinto’s tome “As Nature Made Him: The Boy Who Was Raised as a Girl”.

HealthScoutNews cited a study published in the November 2002 issue of “Child Development”. The researchers, from City University of London, found that the level of maternal testosterone during pregnancy affects the behavior of neonatal girls and renders it more masculine. “High testosterone” girls “enjoy activities typically considered male behavior, like playing with trucks or guns”. Boys’ behavior remains unaltered, according to the study.

Yet, other scholars, like John Money, insist that newborns are a “blank slate” as far as their gender identity is concerned. This is also the prevailing view. Gender and sex-role identities, we are taught, are fully formed in a process of socialization which ends by the third year of life. The Encyclopedia Britannica 2003 edition sums it up thus:

“Like an individual’s concept of his or her sex role, gender identity develops by means of parental example, social reinforcement, and language. Parents teach sex-appropriate behavior to their children from an early age, and this behavior is reinforced as the child grows older and enters a wider social world. As the child acquires language, he also learns very early the distinction between “he” and “she” and understands which pertains to him- or herself.”

So, which is it – nature or nurture? There is no disputing the fact that our sexual physiology and, in all probability, our sexual preferences are determined in the womb. Men and women are different – physiologically and, as a result, also psychologically.

Society, through its agents – foremost amongst which are family, peers, and teachers – represses or encourages these genetic propensities. It does so by propagating “gender roles” – gender-specific lists of alleged traits, permissible behavior patterns, and prescriptive morals and norms. Our “gender identity” or “sex role” is shorthand for the way we make use of our natural genotypic-phenotypic endowments in conformity with social-cultural “gender roles”.

Inevitably as the composition and bias of these lists change, so does the meaning of being “male” or “female”. Gender roles are constantly redefined by tectonic shifts in the definition and functioning of basic social units, such as the nuclear family and the workplace. The cross-fertilization of gender-related cultural memes renders “masculinity” and “femininity” fluid concepts.

One’s sex equals one’s bodily equipment, an objective, finite, and, usually, immutable inventory. But our endowments can be put to many uses, in different cognitive and affective contexts, and subject to varying exegetic frameworks. As opposed to “sex” – “gender” is, therefore, a socio-cultural narrative. Both heterosexual and homosexual men ejaculate. Both straight and lesbian women climax. What distinguishes them from each other are subjective introjects of socio-cultural conventions, not objective, immutable “facts”.

In “The New Gender Wars”, published in the November/December 2000 issue of “Psychology Today”, Sarah Blustain sums up the “bio-social” model proposed by Mice Eagly, a professor of psychology at Northwestern University and a former student of his, Wendy Wood, now a professor at the Texas A&M University:

“Like (the evolutionary psychologists), Eagly and Wood reject social constructionist notions that all gender differences are created by culture. But to the question of where they come from, they answer differently: not our genes but our roles in society. This narrative focuses on how societies respond to the basic biological differences – men’s strength and women’s reproductive capabilities – and how they encourage men and women to follow certain patterns.

‘If you’re spending a lot of time nursing your kid’, explains Wood, ‘then you don’t have the opportunity to devote large amounts of time to developing specialized skills and engaging tasks outside of the home’. And, adds Eagly, ‘if women are charged with caring for infants, what happens is that women are more nurturing. Societies have to make the adult system work [so] socialization of girls is arranged to give them experience in nurturing’.

According to this interpretation, as the environment changes, so will the range and texture of gender differences. At a time in Western countries when female reproduction is extremely low, nursing is totally optional, childcare alternatives are many, and mechanization lessens the importance of male size and strength, women are no longer restricted as much by their smaller size and by child-bearing. That means, argue Eagly and Wood, that role structures for men and women will change and, not surprisingly, the way we socialize people in these new roles will change too. (Indeed, says Wood, ‘sex differences seem to be reduced in societies where men and women have similar status,’ she says. If you’re looking to live in more gender-neutral environment, try Scandinavia.)”

SMS for the estate agent – Targeted marketing tool, or Legal Minefield?

SMS for the estate agent – Targeted marketing tool, or Legal Minefield?

Imagine having at your disposal a means to immediately inform house buyers that you have just the property they are looking for. Potential buyers have given their details and their preferences – imagine that you can send them this information no matter where they are or what they are doing, they can read it at a time that’s convenient and can act accordingly in their own time. Imagine that you can do this quickly and easily, in a matter of minutes, regardless of the number of recipients.
Sounds too good to be true? Well it’s not – it’s available now, it’s inexpensive and you can be taking advantage of it within minutes of reading this article. It’s called SMS Text Messaging – and of course you already knew about it didn’t you?
From the homebuyer’s perspective, SMS is a really convenient way to get information. It’s personal and it’s discreet. There’s immediacy about the message, but at the same time it’s not intrusive, and they can handle the response at their convenience.
So you decide that this is a great idea and you want to get your company geared up for the 21st century. How do you get started? Perhaps your first thought is to get your friendly IT Consultant to take a look at the problem, right?
Stop! Don’t pick up that phone until you’ve read the rest of this article. In common with many of these kinds of issues it’s easy to get so bogged down in the technicalities that we fail to consider some of the other issues involved.
First of all, let’s look at the legalities.
By 31st October 2003, all member states of the European Union will be implementing Article 13 of the Directive on Privacy and Electronic Communications (DPEC).A public consultation on how to implement the DPEC in the UK was launched by the DTI on 27 March 2003, and ran for 12 weeks, closing on 19 June 2003. Final implementing Regulations are now being prepared, taking into account the responses received. The DTI intend to publish details of these final measures by mid-September 2003. The new Directive:
Replaces existing definitions for telecommunications services and networks with new definitions for electronic communications and services to ensure technological neutrality and clarify the position of e-mail and use of the internet;
Enables the provision of value added services based on location and traffic data, subject to the consent of subscribers (for example, location based advertising to mobile phone users);
Removes the possibility for a subscriber to be charged for exercising the right not to appear in public directories;
Introduces new information and consent requirements on entries in publicly available directories, including a requirement that subscribers are informed of all the usage possibilities of publicly available directories – e.g. reverse searching from a telephone number in order to obtain a name and address;
Extends controls on unsolicited direct marketing to all forms of electronic communications including unsolicited commercial e-mail (UCE or Spam) and SMS to mobile telephones; UCE and SMS will be subject to a prior consent requirement, so the receiver is required to agree to it in advance, except in the context of an existing customer relationship, where companies may continue to email or SMS on an ‘opt-out’ basis;
Clarifies that the Directive does not prevent Member States from introducing provisions on the retention of traffic and location data for law enforcement purposes;
Introduces controls on the use of cookies on websites. Cookies and similar tracking devices will be subject to a new transparency requirement – anyone that employs these kinds of devices must provide information on them and allow subscribers or users to refuse to accept them if they wish.
So what does that mean to the potential implementation of your SMS service? Well, it seems quite clear, we must obtain the recipient’s permission before sending any SMS messages “unless there is an existing customer relationship”. The exact meaning of “existing customer relationship” is however somewhat of a grey area in the act. For example, if it is interpreted as being someone who has at some time bought a product from the vendor, would that mean that the product being marketed would need to be the same type of product? If this were the case, a supermarket would only be able to send messages about a single line of product to people who have bought that product and would not be able to send messages about other merchandise or services. The DTI’s stance on this is that this particular issue is clearly covered in existing UK legislation under the Data Protection Act 1998:-
“These would restrict a business to direct marketing the kind of products the addressee would have reasonably expected it to market at the time they gave or agreed to use of their contact details i.e. a business could market the products available at the time, but not necessarily those of a business that it took over, or a substantively new product range.”
So, therefore, it would seem that say a large supermarket chain, who got your name and address, phone number and email details whilst you were a customer buying groceries, should not be legally entitled to begin any form of communication with you using information about you gathered in this way if, for example, they were to start selling Insurance services or indeed start up an Estate Agency business? It would seem so.
So, in most cases, it would appear that your existing customers are open to you being able to send them SMS messages, as it would be reasonable to assume that they would expect you to send them property related information.
There are however other grey areas in the document.
The following is an excerpt from the DTI’s document on Article 13:-
“Grey areas under the current rules include the status of systems which send SMS automatically and power dialler-type systems which dial numbers automatically but are designed to establish a voice link with a live operator rather than a pre-recorded message. Lack of certainty about the application of the TDPP (Telecoms Data Protection Directive) Regulations has made it harder to deal with the problems that these kinds of systems can cause. Power diallers, for instance, can cause problems to subscribers where they are used without enough call centre staff available to answer the calls being dialled, resulting in single or repeated silent calls, or calls which cut off after a few rings, in addition to any annoyance caused if they are used to ring subscribers who have registered on the TPS (Telephone Preference Service).
Limiting the definition of automated calling system does not mean that these areas will be unregulated. The sending of unsolicited SMS for advertising purposes is now explicitly covered by the Privacy Directive which treats them in the same way as e-mail messages.”
Anyone receiving SMS messages from you should have a clear indication of where the message came from and a clear method to unsubscribe from your service.
It would seem therefore that apart from any other considerations, there are many potential legal pitfalls to setting up your own e-marketing system.
Looking at this from a slightly different perspective, the solution may well be a lot easier than you might expect. From the consumer’s angle, the approach to receiving SMS or email messages about products and services is something each of us would rather have much more personal control over. In 1998, my company at the time, Geoworks Corporation, did some extensive focus group research into consumer reaction to e-marketing and in particular SMS. This research was conducted both here in the UK and in the US. At that time, SMS messaging had been available to mobile phone users for a number of years, but we had not acheived the massive volumes that were to be reached in the phenomenon which took place some 12-18 months later when Pay As You Go services sparked huge SMS growth. To illustrate the point, all of the UK mobile phone companies at this time probably had only one or two SMS Controllers (a computer which handles the storage and routing of SMS messages) in their infrastructure. When the ramp-up suddenly began, the growth caught most of them completely unawares and meant that they had to try and commission new SMSC’s faster than the boxes could be ordered! What had been a fairly straight and flat line on a graph suddenly went vertical. Our research at Geoworks indicated that consumers were excited about receiving SMS messages about products or services provided that they were not being charged to receive the message and they had some control over what products and services they were going to receive messages about. “Permission Marketing” was the key – what the consumer wants, when they want it and where they want it. Consumers indicated that they would be happy to receive all kinds of information supported by advertising on the same basis – for example, Weather Information sponsored by X or Football Scores sponsored by Y.
It would seem then, that the key to success in this area is not in the hands of the vendor’s innovations or exclusive products, but in giving the consumer control. Without permission, any attempt to sell via this means becomes annoying and intrusive, causing the would-be potential buyer to become alienated against the marketer – a self-defeating exercise if ever there was!
So what should be your way forward? Look at other e-marketing success stories for a clue. Amazon.com is, today, a well known and respected seller of books and much more which started from humble roots in the Seattle area and has grown to be a worldwide $ multi-million success. Amazon’s success was based on giving you, the consumer, control and providing a top-class next-day service. You control from the comfort of your home or office, the parameters that determine what you get from Amazon. It’s easy and convenient, and grew like topsy. Ebay is another example – providing a worldwide auction service. Many other services provide ‘Portal’ access for the consumer to select what information they wish to receive.
So it seems Portal services are the key to gaining the hearts and minds of the consumer. But as an Estate Agent, how does that help?
A Portal could provide a single access point for would-be housebuyers to register their interest in properties by locale, price and number of bedrooms. The consumer controls what they want to get. It is open to all Estate Agents who can register, quickly and easily, any property that is going on the market. Any technical or legal issues are the responsibility of the Portal and not of the individual Estate Agent.
From the consumer perspective, it’s one place to go, they register once, but potentially get messages from many Estate Agencies provided that they match their criteria. It’s free to the consumer, and they have control to change their criteria or unsubscribe should they wish.