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Gresham's law in IT


f you had studied economics as an undergraduate you would have certainly come across ' 'Gresham's law'. A reigning queen of England of the victorian times distressed as she was that her subjects were using debased and mutilated coins, ordered fresh supply from the mint. But shw saw no change in the preference of her subjects. A nobleman and financier in her court by the name Lord Gresham proferred an explanation thus “Bad coins drive good coins out of circulation”. People simply hoarded the newly minted coins and used only the debased ones. This observation of Lord Gresham came to be known as ' Gresham's Law'.

Most 'Laws of economics' , being merely codified common sense, find applicability in other areas. For example, often during water-cooler conversations in IT companies, you will get to hear Project Managers distressing over not being able to find right-skilled associates for their Project. This is in spite of thousands being recruited and several more thousands being trained continuously. But a keener look into the problem will show the Gresham's law in operation. Not all Projects and not all stages of a Project require associates of advanced skills. But the Project Managers and Program Managers hold on to skilled associates like they cling to their dear lives. They do not let go of them, often employing them on mundane tasks that are befitting lesser skilled associates. The reasons for the PMs' behaviour are varied. It is sometimes the effect of 'past experience' or their anticipation of deeper relationships and more oppurtinities with the same account. You can also trace this behaviour to an insecure Project manager wanting the cover of more experienced and skilled associates around him, like a prostate braveheart in a hunting trip asking all those who are afraid of the tiger lie down on him!

If you see from the overall organizational point of view, this is a tragedy as neither the associate concerned nor the organizational is benefitted. This hoarding means that 'Bad associates drive good associates out of cirulation' which is in effect 'Gresham's Law'.

Smart associates will see a lesson here. Even if  you do not become a 'Bad coin' yourself , do not become indispensable to your Project Manager and gather moss.


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