NHRD Apr 2009

NHRD Network Journal
ISSN - 0974 - 1739

April 2009 Volume 2 Issue 2
National HRD Network

John Adair
The National HRD Network, established in 1985, is an
Arvind Agrawal
association of professionals committed to promoting
Stewart D. Friedman
the HRD movement in India and enhancing the
capability of human resource professionals, enabling Paul Hersey
them to make an impactful contribution in enhancing N.S. Rajan
competitiveness and creating value for society. Dave Ulrich and Norm Smallwood
Towards this end, the National HRD Network is Gary Yukl and Rubina Mahsud
committed to the development of human resources Anu Aga
through education, training, research and experience Sandeep Bakhshi
sharing. The network is managed by HR professionals
Leadership
Jaspal Bindra
in an honorary capacity, stemming from their interest
in contributing to the HR profession. Leadership Peter Capelli et al
Jim Collins
The underlying philosophy of the NHRDN is that every B. Santhanam
human being has the potential for remarkable Vijay Bharadwaj
achievement. HRD is a process by which employees in
Aquil Busrai
organizations are enabled to:
Rajeev Dubey
• acquire capabilities to perform various tasks P. Dwarakanath
associated with their present and future roles;
Adil Malia
• develop their inner potential for self and Anand Nayak and L. Prabhakar
organizational growth, Vivek Patwardhan
• develop an organizational culture where Satish Pradhan
networking relationships, teamwork and Sanjeev Sahi
collaboration among different units is strong, T.T. Srinath
contributing to organizational growth and
Inder Walia
individual well-being.
April 2009
A quarterly Publication by The National HRD Network
www.nationalhrd.org www.nationalhrd.org
NHRD Apr09 - wrapper.p65 1 5/2/2009, 3:50 PM

ABOUT THE JOURNAL
NHRD Network Journal The National HRD Network publishes a semi-academic quarterly journal-each issue dedicated to a
theme. Publications so far include on the themes “IT in HR”, ”Performance Management”, “Attracting
Leadership
and Retaining Talent”, “Career Management”, “Organizational Change”, “Global HRM”, “Women in
Volume 2 Issue 2 April 2009 Corporate Leadership Roles”, “Organization Development” and “Learning and Development”.
The current issue is on the theme of “Leadership”
NHRD Network Board Members
The plan for the ensuing issues is as follows:
National President: Aquil Busrai, ED-HR, IBM India Limited,
Past National Presidents: Dwarakanath P, Director-Group Human Capital, Max India Date of Publication Theme Guest Editor
Dr. Santrupt Misra, Director Aditya Birla Group July 2009 Work-Life Balance Dr. C.S. Venkataratnam
Regional Presidents: Oct. 2009 Institution Building Mr. S. Varadarajan
East: Prof. Madhukar Shukla, XLRI, Jamshedpur Jan. 2010 “HR for, and of Gen Next” —
Leveraging Demographic Dividend Dr. S. Chandrasekhar
South: Gopalakrishna M, Director Incharge, A.P. Gas Power Corporation Ltd.
West: Satish Pradhan, Executive VP Group HR, Tata Sons The journal publishes primarily three categories of articles:
North: NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, • Conceptual and research based
Ernst & Young
• Contributions from thought leaders including a limited number of reprints with due permission
National Secretary: Dr. P VR Murthy, CEO, Exclusive Search Recruitment Consultants • Organizational experiences in HR interventions/mechanisms
National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises

Editorial Board Members :
Executive Directors: Satyanarayana K (Hon.)
Dr. P.V.R. Murthy, Managing Editor is a product of I.I.T., Kharagpur and IIM, Calcutta with close to thirty
Mohit Gandhi years experience in H.R. field. He is founder and runs an executive search firm Exclusive Search
Recruitment Consultants. He is associated with a number of academic institutions. He is trained in
Editorial Board NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, TQM in Japan and in human processes from ISABS and NTL, U.S.A., He is the National Secretary of
Ernst & Young, ns.rajan@in.ey.com
National HRD Network.
(Guest Editor for this issue)
Dr. PVR Murthy, Managing Editor, Aquil Busrai is Executive Director Human Resources with IBM India. He has over 36 years HR
CEO, Exclusive Search Recruitment Consultants, experience, both in strategic and operational HR with blue chip organisations like Unilever in Kenya
pvrmurthy@exclusivesearch.com and India, Motorola in Asia Pacific and Shell in Malaysia. He is the National President for National HRD
Network.
Aquil Busrai, Executive Director, Human Resources, IBM India
Limited, aquil.busrai@in.ibm.com Dr. Pallab Bandyopadhyay is the Vice President & Head, Human Resources - Asia Pacific, Perot
Dr. Pallab Bandyopadhyay, VP-HR-Asia Pacific, Perot Systems, Systems. A doctoral fellow from XLRI and AHRD. He is trained in OD and Human Processes from NTL,
pallab.bandyopadhyay@ps.net USA, he believes in applying HR concepts to practice to make it more meaningful and effective. He is
a mentor and coach to many young HR professionals.
Publisher, Printer, Owner Satyanarayna K, Hon. Executive Director, National HRD Network on
and Place of Publication behalf of National HRD Network, 506, Sai Siri Sampada, 7-1-29/23 & 24, NHRD firmly believes in and respects IPR and we appeal to the
Leela Nagar, Ameer Pet, Hyderabad 500 016. Tel: +91 (40) 2374-2429 contributors to strictly honour the same.
ksnhrd@gmail.com
Printed at Nagaraj & Co. Pvt. Ltd., 156, Developed Plots Industrial Estate, For any further clarifications, please Contact :
Perungudi, Chennai 600 096. Tel : 044 - 66149291 The Managing Editor
Dr. P V R Murthy, CEO, Exclusive Search Recruitment Consultants,
The views expressed by the authors are of their Copyright of the NHRD Journal, all rights reserved.
own and not necessarily of the editors nor of the Contents may not be copied, emailed or reproduced #8, Janaki Avenue, Off 4th Street, Abhiramapuram, Chennai 600 018.
publisher nor of authors’ organizations without copyright holders’ express permission in writing. pvrmurthy@exclusivesearch.com

CONTENTS
S.No. Title of Article Author Page No.
THE MASTERS
1 Functional Leadership John Adair 2
2 Leadership for Averting Organization Disasters Arvind Agrawal 8
3 How To Improve Performance Stewart D. Friedman 16

In All Parts of Life
4 Pace, Then Lead Paul Hersey 22
5 Leadership Theory: In Evolution NS Rajan 24
6 Our Leadership Journey Dave Ulrich and 33

Norm Smallwood
7 Linking Strategic Leadership and Human Gary Yukl and 44

Resource Management Rubina Mahsud
THE ARCHITECTS
8 When Does a CEO Become a Leader? Anu Aga 52
9 Effective Leadership is Driven by Sandeep Bakhshi 57

Strong Values
10 Leadership in Changing Times Jaspal Bindra 61
11 The DNA of Indian Business Leadership Peter Capelli, Harbir Singh, 66

Jitendra V Singh and
Michael Useem
12 The 10 Greatest CEOs of All Time Jim Collins 72
13 I10 : Framework For Leadership B Santhanam 80
THE ALCHEMISTS
14 Leadership Development Process in an
Organization to Sustain Business
Growth and Leadership Vijay Bharadwaj 88
15 Letter to a Young Professional Aquil Busrai 94
16 Leadership in Tomorrow’s Company Rajeev Dubey 96
NHRD Apr09 - 00 prelims.p65 1 5/2/2009, 3:25 PM

S.No. Title of Article Author Page No.
17 Leadership in Perspective P Dwarakanath 100
18 Corporate “Ubermensch” – A View from

Ethereal to the Real… Adil Malia 106
19 The ITC Leadership Paradigm: Vision, Anand Nayak and 109

Values & Vitality L Prabhakar
20 Dimensions of Leadership Vivek Patwardhan 116
21 Leadership – The Experience of Those Satish Pradhan 122

We Choose To Lead
22 All Aboard! – The Leadership Journey at HAL Sanjeev Sahi 126
23 The New Leader: An Emerging Butterfly T.T.Srinath 132
24 Leadership at Bharti Inder Walia 136
Book Reviews
25 Leadership Brand by Dave Ulrich & C Mahalingam 142
Norm Smallwood
26 Leadership in The Era of Economic S Sadasivan 144

Uncertainty by Ram Charan
27 The Gamechanger: How Every Leader R Shantaram 145

Can Drive Everyday Innovation by
A.G.Lafley & Ram Charan
28 Strengths based Leadership by C S Venkata Ratnam 146

Tom Rath and Bary Conchie

EDITORIAL COMMENTS
Kenneth Clarke, the eminent art historian, who dedicated a lifetime
to the study of civilization, would say that he still did not know what
it was but thought he could recognize it when he saw it.
Metaphorically, the study of Leadership, both an art and science,
could well be described in similar terms. With the advent of
industrialization in the nineteenth century, leadership in the world
of business assumed renewed significance and drew some of the great
minds to unravel our understanding of it with multidisciplinary
approaches.
The need for, and recognition of leaders has been felt arguably since
the beginning of human civilization. This has been felt even more
NS Rajan acutely in current times with the turn of events around us throwing
(Guest Editor for up unprecedented challenges. As Napoleon aptly observed, "a leader
this Issue) is a dealer in hope", and the situation today calls for leadership that
Rajan is Partner can convert these adversities into opportunities. It surely is a time to
in the Human reflect on the first principles of leadership.
Capital Practice In such a context, it is indeed a real privilege to bring out this
of Business
"Leadership" issue of the National HRD Network. This special issue
A d v i s o r y
Services and comprises rich contributions from a select list of invitees comprising
Global Leader - eminent scholars, exceptional CEOs and custodians of human capital.
HR Advisory in The authors have blended deep insights, experiential learning and
Ernst & Young. personal discoveries into a powerful amalgam of ideas that serve as
a rich vein of knowledge to enhance our understanding of leadership.
The issue has been divided into three distinct sections, followed by
reviews of books on the theme of leadership.
I: THE MASTERS
Scholars of eminence who have advanced and expanded our
knowledge of leadership through their incisive research, insightful
discoveries and practical frameworks have been specially invited to
contribute to the journal. Some of them have had schools of leadership
named after their thought provoking additions to the science, have
been feted for their rich body of work, and recognized by fraternity
as leadership gurus.
John Adair (renowned for Action Centred Leadership), Stewart D.
Friedman (founding director of the Wharton School's leadership
program), Paul Hersey (reputed for Situational Leadership), Dave
Ulrich & Norm Smallwood (widely known for their hugely popular
best selling books on Leadership), Gary Yukl & Rubina Mahsud
(Yukl's books on Leadership are text books at business schools) have
graciously contributed and enriched the journal. As students of the
science of leadership, Arvind Agarwal (RPG Group) and NS Rajan
(Ernst & Young) have reviewed leadership literature throwing light
on the remarkable journey of leadership thought.
II: THE ARCHITECTS
Creators par excellence of wealth for stakeholders, visionaries in their
own right with entrepreneurial flair, and role models all rolled into
one are contributors to this section. It has chief executives offering

their deep insights on leadership, as they perceive it. They are leaders,
who at the helm of their organizations endeavour to create lasting
value and shared vision. The buck stops here!
Anu Aga (Thermax), Sandeep Bakhshi (ICICI Lombard), Jaspal Bindra
(Standard Chartered Bank) and B Santhanam (Saint Gobain) need
no introduction, and their articles reflect deep understanding of what
it means to lead successfully.
Jim Collins (of the classic Built to Last fame) contributed an article he
wrote on the ten best CEOs, hugely relevant even today. Peter Capelli,
Harbir Singh, Jitendra V Singh, and Michael Useem (of Wharton
School) had joined hands with NHRD to unravel the DNA of Indian
business leadership, an abstract of which is also featured in this issue.
III: THE ALCHEMISTS
Custodians of human capital of their organizations, leaders of the
critical human resources function, creators of shared vision and
alchemists who nurture and develop the latent potential comprise
this section of contributors, a veritable galaxy of people who truly
matter to people who truly matter.
The invitees include some of the finest human resource leaders in
the country including Vijay Bharadwaj (Dell), Aquil Busrai (IBM),
Rajeev Dubey (Mahindra Group), P Dwarakanath (Max Group), Adil
Malia (Essar Group), Anand Nayak & L Prabhakar (ITC), Vivek
Patwardhan (Asian Paints), Satish Pradhan (Tata Group), Sanjeev
Sahi (Hindustan Aeronautics) , TT Srinath (Pegasus), and Inder Walia
(Bharti) who have distilled decades of experiential knowledge into
eminently articulated expositions of leadership thought.
BOOK REVIEWS
CS Venkata Ratnam, C Mahalingam, Shantaram R and S Sadasivan
have reviewed the recent books available on leadership.
In putting together this special edition on leadership, the journey
has been immensely gratifying, and the opportunity to interact with
the contributors has been a remarkable source of learning.
Hope this endeavour serves the purpose of illuminating the science
of leadership thought, and in current times to serve as a beacon for
action. I recall the words of William Shakespeare's from Julius Caesar
"There is a tide in the affairs of men, which taken at the flood, leads
on to fortune". May you find yours.
Dr. PVR Murthy Aquil Busrai Dr. Pallab

Managing Editor Bandyopadhyay

Scholars of eminence who have advanced and expanded our knowledge of
leadership through their incisive research, insightful discoveries and practical
frameworks have been specially invited to contribute to the journal. Some of them
have had schools of leadership named after their thought provoking additions to
the science, have been feted for their rich body of work, and recognized by fraternity
as leadership gurus.
John Adair (renowned for Action Centred Leadership), Stewart
D. Friedman (founding director of the Wharton School’s leadership program),
Paul Hersey (reputed for Situational Leadership), Dave Ulrich & Norm
Smallwood (widely known for their hugely popular best selling books on
Leadership), Gary Yukl & Rubina Mahsud (Yukl’s books on Leadership are text
books at business schools) have graciously contributed and enriched the journal.
As students of the science of leadership, Arvind Agrawal (RPG Group) and NS
Rajan (Ernst & Young) have reviewed leadership literature throwing light on
the remarkable journey of leadership thought.
April | 2009 NHRD Network Journal 1
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FUNCTIONAL LEADERSHIP
JOHN ADAIR
Abstract
Leadership does not operate in isolation, and in fact is based on continuous interaction with
others. This interaction is constitutive of complex coordinates which determines whether the
group is able to achieve its objectives or not. This article presents a leadership framework that
explains leadership in the context of group situations and details the key functions of
leadership. Further, it elaborates upon the key behaviors that are useful in order achieve the
desired goals.
About the Author

John Adair is one of the world’s leading authorities on leadership
and leadership development. John holds the higher degrees of
Master of Letters from Oxford University and Doctor of Philosophy
from King’s College London, and he is also a Fellow of the Royal
Historical Society. In 2009, John was appointed Chair of Leadership
Studies United Nations System Staff College in Turin. John has
written over 40 books, translated into many languages. Apart from
being an author he is also a teacher and consultant.
“Leadership is action not passion” Sandhurst as part of a programme

- Donald H Mcgannon introducing young officers to the
responsibilities of leadership. When
Leadership and Motivation are like brother transposed into industry and commerce it
and sister. It is difficult to think of a leader was renamed Action-Centered Leadership
who does not motivate others. But (ACL). Initially, the core content of ACL
leadership embraces more than motivation. remained much the same as the original
What is leadership? The Action-Centered Sandhurst version, though the practical
Leadership (ACL) approach offers exercises and case studies were changed.
comprehensive answer to that question. Here, I shall present that framework of that
The model encompasses the concept of original concept of ACL, and then
Individual Needs, which is the area comment upon its constituent elements.
chartered by Maslow and Herzberg.
Therefore, it provides a natural context for My standard introduction to the ACL
an exploration of their theories model has been to look first at the Qualities
Approach and then at the Situational
The Background Approach to leadership. Having outlined
Functional leadership training was first these approaches or theories, identifying
developed at the Royal Military Academy, both their drawbacks and their positive
2 April | 2009 NHRD Network Journal
NHRD Apr09 - 1.p65 2 5/2/2009, 3:25 PM

contributions to our understanding of maintenance need’). The third area is
leadership, I move on to the third constituted by the sum of the individual
ingredient in the story (apart from the needs of group members.
personality and character of the leader and
the situation in which it was all happening), Individual Needs and Motivation
namely the people concerned. Having
This third area of need present in the
mentioned the amount of research done on
corporate life inheres in the individual
groups as wholes that are more than the
members rather than in the group itself. To
sum of their parts (which led to
the latter they bring a variety of needs –
establishment of the new sub-disciplines of
physical, social, intellectual, and spiritual
Social Psychology) I explain that I have
– which may or may not be met by
selected one theory from the mass of
participating in the activity of the group.
research material which I consider to be of
Probably physical needs first drew men
most relevance to the practical manager
together in working groups: the primitive
intent upon understanding leadership and
hunter could take away from the slain
motivation – the theory of group needs. To
elephant a hunk of meat and a piece of hide
this I add the concept of group personality.
for his own family. Nowadays the means
This is how I actually explain it.
for satisfying these basic needs of food,
shelter and protection are received in
The Theory of Group Personality and money rather than in kind, but the
Group Needs principle remains the same.
As a starting point I have developed the
idea that working groups resemble There are, however, other needs less
individuals in that although they are tangible or conscious even to their
always unique (each develops its own possessors which the social interaction of
‘group personality’) yet they share, as working together in a group may or may
individuals do, certain common ‘needs’. not fulfill. These tend to merge into one
There are three areas of needs present in another, and they cannot be isolated with
such groups. Two of these are the any precision, but Figure 1.1 will indicate
properties of the group as a whole, namely their character. Drawn from the work of
the need to accomplish the common tasks and AH Maslow1 it also makes the point that
the need to be maintained as a cohesive social needs are organized on a priority basis. As
unity (which I have called the ‘team basic needs become relatively satisfied
Self-actualization
Esteem Growth
Personal development
Social Self respect Accomplishment
Status
Safety Belonging Recognition
Social activities
Physiological Security Love
Protection from danger
Hunger
Thirst
Sleep
Figure 1.1 The priority of needs
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higher needs come to the fore and become group identity – the ‘we’ feeling, as some
motivating influences. have called it. The moment of victory closes
These needs spring from the depths of our the psychological gaps between people:
common life as human beings. They may morale rises naturally. Good internal
attract us to, or repel us from any given communications and a developed team
group. Underlying them all is the fact that spirit based upon past successes make a
people need one another, not just to survive group much more likely to do well in its
but to achieve and develop personality. task area, and incidentally provide a more
This growth occurs in the whole range of satisfactory climate for the individual.
social activity – friendship, marriage, Lastly, an individual whose needs are
neighborhood, but inevitably work groups recognized and who feels that he or she can
are extremely important because so many make a characteristic and worthwhile
people spend so much of their waking time contribution both to the task and the group
in them. will tend to produce good fruits in both
these areas.
Professor Fredrick Herzberg has
dichotomized the list by suggesting that the We can illustrate these interrelations with
factors which make people experience a simple model:
satisfaction in their work situation are not
the reverse of those which make them
dissatisfied. The latter is caused by
deficiencies in the environment or context
TASK
of the job; in contrast, job rests upon the
content of work and the opportunities it
presents for achievement, recognition,
professional development and personal
growth.2 TEAM INDIVIDUAL
The Needs Interact
The first major point is that these areas of
need influence one another for better or
worse. For example, if a group fails in its Figure 1.2 Interaction of needs
tasks this will intensify the disintegrative
tendencies present in the group and If you place a coin over the task circle it
produce diminished satisfaction for its will immediately cover segments of the
individual members. If there is a lack of other two circles as well. In other words,
unity or harmonious relationships in the lack of task or failure to achieve it will affect
group this will affect performance on the both team maintenance e.g. increasing
job and also individual needs (cf. A H disruptive tendencies, and also the area of
Maslow’s Social Needs). And obviously an individual needs, lowering member
individual who feels frustrated and satisfaction within the group. Move the
unhappy in a particular work environment coin on to the ‘Team’ circle and again the
will not make his or her maximum impact of near-complete lack of
contribution to either the common task or relationships in the group on both task and
to the life of the group. individual needs may be seen at a glance.
Conversely, achievement in terms of a Conversely, when a group achieves its task
common aim tends to build a sense of the degree of the group cohesiveness and
NHRD Apr09 - 1.p65 4 5/2/2009, 3:25 PM

enjoyment or membership should go up. leaders. Leadership resided in the
Morale, both corporate and individual, will functions not a person. Therefore, the
be higher. And if the members of the group group could share leadership amongst
happen to get on extremely well and find themselves. If a member provided a
that they can work closely as a team, this function, e.g. summarizing which the
will increase their work performance and group accepted, then in that moment it
also meet some important needs which became a leadership function. If the group
individuals bring with them into the did not accept, then it remained a
common life. membership function. So leadership
passed from person to person, like a ball
These three interlocking circles therefore in football match. It is true that some
illustrate the general point that each area groups might elect leaders, but their role
of need exerts an influence upon the other was essentially to be as safety nets, picking
two: they do not form watertight up the functions which members failed to
compartments. provide.
As already stated, these assumptions
Leadership Functions rested in part on value judgments,
In order for the need for this area to be met especially the dislike of any idea of an elite
in any group or organization certain of born leaders exercising power over their
functions have to be performed. According fellows. It also reflected the particular
to this integrated theory, the provision for situation of the group laboratory: 16 or 18
these necessary functions is the people, all with equal knowledge or
responsibility of leadership. However, not ignorance, plunged into a group with no
all of them are required all of the time. task but to examine to examine their own
Therefore you need: lives. Valuable as it was for learning or
research ends such groups are rather
1. Awareness of what is going on in groups different from real work groups in industry
(the group process or underlying or any other human enterprise.
behavior as well as the tip of the iceberg-
the actual content of the discussion). To begin with, work groups have a more
concrete or objective task to perform.
2. Then one needs understanding which Groups which come together to pursue a
means in this context knowing that a self chosen task, such as trade unions or
particular function is required. sports clubs, tend to elect their own leaders,
who are responsible ultimately to the
3. You should have the skill to do it well group. Where tasks are given to the group
enough to be effective. That can usually the leader tends to be appointed by a higher
be judged by whether or not the group authority and sent to it as part of the
responds or changes course. package deal. In this case, the leader is
accountable first to the appointing
But are these membership or leadership authority and only secondly, if at all, to the
functions? The orthodox teaching of the group. He is accountable for all three
group laboratory movement, as we have circles. That does not mean, of course, that
seen, was somewhat ambiguous on this the leader is going to provide all the
point. On the whole they were happier functions needed in the three areas, there
talking about leadership rather than are far too many required for any one
NHRD Apr09 - 1.p65 5 5/2/2009, 3:25 PM

person to do that, especially in larger Understanding your position as the leader
groups. If he exercises the art of leadership in relation to the three circles is vitally
properly, he will generate a sense of important. You should see yourself as half
responsibility in every one of them so that in half out. There should be some social
members naturally want to respond to the distance between you and the group, but
three sets of need. But he alone is not too much. The reason for maintaining
accountable at the end of the day. It is the this element of distance is not to enhance
leader who should get the sack if the task your mystique, but because you may have
is not achieved, or the group disintegrates to take decisions or act toughly in the task
area which will cause reactions to be
into warring factions, or the individuals’
directed at you, from the group and the
lapse into sudden apathy. That is why
individuals who face, in consequence,
leaders usually get paid more than the
some unwelcome change. You have
group members.
weakened yourself if you are on too
friendly terms; or rather you have exposed
yourself to pressures – ‘we didn’t expect
this from you’- which you may not be able
to handle.
Achieving the
Task There is an especial problem for leaders
who are elected or appointed from
amongst their workmates and remain with
the same group. To exchange the close
Building and Developing
friendly relationship of collgeues for those
Maintaining the Individual
of a leader or subordinate is not easy. That
the Team
has been recognized for many years. When
the Roman Army appointed a man to be a
centurion (a cross between a company
Figure 1.3 What a leader has to do commander and a regimental sergeant
Position of Leader in relation to Group

Behavior Useful Not Useful
Leader emphasizes Where group knows him well before he became a Where group already has a
distance leader. When group seems to want over-familiarity. strong traditional sense of
When unpopular decisions are in the offing. distance from its leaders.
When taking charge initially of a new group When people can be fully
trusted not to become too
When taking charge initially of a new group familiar anyway
Leader minimizes When there is lack of communication and trust Where the distance is
distance between management and employees already fairly minimal
Where all are roughly equal in knowledge and owing to the predecessor’s
experience. style.
Where it can be mis-
interpreted as familiarity.
Leader strikes Most working situations Where the group needs
balance between corrective treatment after
closeness and either too remote or too
distance friendly leadership.
Figure 1.4 Position of Leader in relation to Group
NHRD Apr09 - 1.p65 6 5/2/2009, 3:25 PM

major) he was always given a century of the burden with those who work for him,
100 men in another legion. The principle is or open his heart about his own doubts,
a sound one, and is widely applied in the fears and anxieties; that is best done with
industry today. other leaders of his own level. If the leader’s
superior is doing his job he will help to
You can begin to see why a degree of self
make such meetings possible (they are
sufficiency is important for a leader.
often called management training courses!)
Leadership is not about popularity, though
Even more important, the leader’s superior
it would be inhuman not to enjoy being
will himself be a resource; a pillar of
liked. Because leaders tend to have social,
strength and at times a shoulder to weep
even gregarious natures, they can find the
upon, should the leader require it.
inevitable brickbats that come their way
hard to endure. But what matters in the By performing the functions of leadership,
long run is not how many rounds of the leader guides the group to:
applause a leader receives but how much • Achieve the Common Task
respect he gains, and that is never achieved
• Work as a Team
by being ‘soft’ or ‘weak’ in the task, team
or individual circles. See Fig 1.4 for some • Respect and Develop Its Individual
relationships between leader and group. Members
The leader’s social needs can be met partly Until you can do this essential work your
by relations with his team, but it is always appointment as a leader will not be ratified
lonely at the top. He can never fully share in the heart and minds of the group.
The copyright of this article belongs to its author, Mr. John Adair. The three circles model and the
Action Centered Leadership (ACL) in particular is his registered trademark. For more details
please visit http://www.johnadair.co.uk/. If any organisation is interested in applying the author’s
work to leadership training & development, please get in touch with him through his website.
NHRD Apr09 - 1.p65 7 5/2/2009, 3:25 PM

LEADERSHIP FOR AVERTING ORGANIZATION
DISASTERS
ARVIND AGRAWAL
Abstract
This article distinguishes between the ‘Leader’ as an Individual and ‘Leadership’ as a process.
Further, the article explains leadership as a process in the context of the nature of tasks and
exchange with subordinates. Both, excessive job demands on the leader and a very personalized
relationship with the leader, pose threats for the organization, as the leaders may indulge in
‘impression management’ or ‘hijack’ the organization to meet own agenda. Therefore,
appropriate checks and balances need to be built by organizations to avert any crises in future.
About the Author

Arvind Agrawal is an IIT Kharagpur and IIM (A) alumnus, majoring
in Marketing and Human Resource Development. Since 1999, he is
President – Corporate Development and Group HR in the RPG
Group. His current responsibilities in RPG comprise HR, TQM and
Information Technology. The first 12 years of his working life were
spent in the HR function in companies like Escorts and Modi Xerox.
On the professional front, Arvind has been active in Management
& HR forums in the country. In 1992, he was awarded the National
HRD Award.
Organization performance has been the economy, marked with unprecedented and
focus of scholars since long. From Fortune sweeping changes. This has thrown open
500 list of companies in 1992, only 120 opportunities in all sectors of economy.
appear in the list of Fortune 500 for the year Organizations have had wider choices to
2007. That is, over 76% of the Fortune 500 embrace new technology, launch new
companies disappeared from the list in 15 products, enter new markets and become
years, Accenture study (2007). In India, one global companies. These opportunities have
of the most readily available organized been available to all companies in India.
data on performance of the business Some of them made full use of these
organizations is published by Economic opportunities and grew very rapidly. On the
Times, in terms of ranking of Top 500 other hand, a large number of companies
companies in India. This is published every have not been able to cope with this new
year so that the comparison from year to liberalized competitive environment.
year is possible. For the purpose of this Economic Times ranking of 500 top
paper, 10 years’ data from the fiscal year companies in India shows that 309 out of
1995 to fiscal year 2005 was taken. These top 500, i.e. 62% of the companies listed in
10 years have been the years of the fiscal year 1995 are no longer in the
liberalization and growth in Indian Economic Times listing of top 500 companies
NHRD Apr09 - 1.p65 8 5/2/2009, 3:25 PM

for the fiscal year 2005. Further, 101 out of Further, Hogan and Kaiser (2005), after
total 500 companies i.e. 20% of the reviewing the empirical literature on
companies have declined in their ranking leadership and organization effectiveness,
from fiscal year 1995 to fiscal year 2005. Only concluded that leadership is the most
90 companies, which are 18% of the Top 500 important factor impacting organization
companies, have improved their ranking effectiveness.
over the last 10 years. Both Fortune 500 and What is leadership which has such an
Economic Times 500 indicate a trend that overwhelming impact on organizations.
large number of organizations are not able Stogdilll (1974) in the Handbook of
to sustain their success over a time period Leadership defines leadership as the
of 10 to 15 years. process of influencing the activities of an
Why does this happen? Does leadership organized group in its efforts towards goal
play any role in influencing the company’s setting and goal achievement. The Webster
performance? dictionary meaning quoted by Augier and
Teece (2005) defines leadership as ‘leading
Wright Theerathom, Tu, Coilmore and
others along a way, guiding’. Javidan and
Lado (1992) conclude that the leadership
House (2002) in their Global Leadership
at the top management together with the
and Organizational Behavior Effectiveness
prevailing organization culture, leading to
(GLOBE) study of 62 countries define
choice of appropriate strategic option,
leadership as the ability to motivate,
leading to superior business performance.
influence and enable individuals to
Ashley and Patel (2003) analyzed the data
contribute to the objective of organizations,
of Fortune 500 companies during 2001 and
of which they are members.
2002. They identified 17 best-performing
companies and 17 worst-performing In this paper, in operational terms,
companies in terms of shareholder returns. leadership is defined as the process to
They found quality of management i.e. the motivate, influence and enable individuals
leadership was one of the most significant to meet goals of the organizations, of which
factors that differentiated the company they are members.
performances. As per this operational definition, leader
Strategic choices have large behavioral is not leadership. Leader is an individual
content in terms of cognitive base and and leadership is a process. This paper
values of the decision makers, Hambrick deals with leadership that is process.
and Mason (1984). They have established Leadership researches also establish that
that leaders’ assumption about future effectiveness of leadership equally depends
events, knowledge of alternatives, upon nature of task, (Fiedler, 1967; House,
consequences and the value system has 1971; Hersey and Blanchard, 1969; Sinha,
profound impact on performance of the 1990). Whittington, Goodwin and Murray
organizations. According to Day and Lord (2004) established that challenging goals
(1988), leadership can make a difference of enhance the effect of leadership behavior
as high as 20 to 45% of performance in an on employee commitment and job
organization. Joyce, Nohria and Roberson performance. However, if the demand on
(2003), reported that leadership accounts the job becomes excessive, it may provoke
for 14% variance in the firm’s performance. the leader to adopt illegitimate means to
They established that leadership biases, demonstrate continued good performance.
experiences and preferences influence Hambrick, Finkelstein and Mooney (2005)
strategic choices and company established the effect of executive job
performance. demand on the leadership behavior.
NHRD Apr09 - 1.p65 9 5/2/2009, 3:25 PM

Firstly, Hambrick et al. (2005) identified management team create high pressure on
three major determinants of the executive the leadership. Pressure on the job gets
job demand as task challenge, performance further compounded by one’s own as well
challenge and executive’s own aspirations. as the followers’ aspirations. Under such
Task challenges are the conditions that excessive pressures, the leadership often
make the performance of the task difficult, gets tempted to doing impression
be it external environmental factors or management or adopting unfair means to
internal factors such as resource scarcity or achieve the promised high achievement.
task complexity. Performance challenges Extent of job demand hence, is an
arise due to various stakeholders such as important contextual variable which
firms’ shareholders, customers, govern- moderates leadership behaviour.
ment regulators or employees. Executive
aspirations could be arising from one’s own Excessive monetary reward linked to
need for achievement, age and tenure. success, is another variable that moderates
leadership behavior. Cannella and Monroe
Research done by Hambrick et al (2005) can (1997) quoted Fama and Jensen, (1983)
be best understood by the diagram below: confirming that tying managerial
remuneration to company performance
This Fig. 1 shows that leadership is induces performance orientation.
surrounded by job demands arising out of However, when there is use of powerful
numerous factors. These factors are rising incentive packages without sufficient
aspiration of customers and shareholders, institutional checks and balances, then it
rapid changes in the environment, shorter leads to temptations of cooking the books,
product lifecycle, and high incentives. Piper (2002). Hambrick et al (2005) conclude
These factors surrounding the top that researches have so far not been able to
Fig. 1 : Consequence of Executive Job Demand on Leadership behaviour

prepared based on Hambrick et al (2005)
Higher Task Followers’

Incentive Complexity aspiration H
I
Shorter G
Product Life H
Cycle
G
Impression
O
Temptations Management A
Rate of change Demands L
Job demands on
in business
Leadership A
environment
C
Illegalities H
I
E
V
Shareholders’ E
Pressure M
E
N
Customers’
Own T
aspiration
Personal S
Aspiration
NHRD Apr09 - 1.p65 10 5/2/2009, 3:25 PM

establish the right level of monetary reward mutual trust, respect and obligation. Wang,
which provides the right level of challenge Law, Hackett, Wang, and Chen (2005) in
without tempting the leadership toward People’s Republic of China, observed that
engaging in erratic strategic choices, transformational leadership behavior
impression management and sometimes positively impacts quality of leader-
even illegalities. During the last decade, member exchange, which in turn positively
there has been increasingly greater focus impacts organization citizenship behavior
to introduce and enhance performance- as well as task performance of the
based incentive remuneration to raise the subordinates. Brower, Schoorman and Tan
performance orientation in the (2000) established relationship between
organizations. If the top management team trust and leader-member exchange. They
is put on excessive monetary reward, then concluded that leaders with high mutual
the resultant leadership behavior may get trust tend to take higher risk and in turn
moderated to somehow produce do higher delegation. Lord and Brown
organization performance. This tempts (2001), in their research found that
the leadership to doing impression followers’ mental model about themselves
management or even adopting unfair and the leader’s, moderates the nature of
means to achieve the targeted high goals. relationship they will have with the leader
Review of leadership literature also and what will be effective leadership
demonstrates that effectiveness of behavior, as shown in Fig. 2 as follows.
leadership is contingent upon quality of It shows that leader with high quality (HQ)
relationship between leader and of relationship with followers will be able
subordinate, (Fiedler, 1967; Vroom and to influence the follower’s mental model
Yetton, 1973; Liden and Graen, 1980; Basss, and hence have higher effectiveness. But if
1999; Hersey and Blanchard, 1969; Sinha, the quality of leader-follower relationship
1990; Vaishli and Kumar, 2003). is of low quality (LQ), then leader may not
High quality of leader’s relationship with be able to influence the follower’s mental
followers leads to mutual trust and model. Hence, leader’s effectiveness will be
consequently increased delegation. low. For leadership, this means, if they
Gerstner and Day (1997) mention that LMX have high quality of relationship with their
(Leader Member Exchange) theory focuses followers, then they will be able to
on the dyadic exchange relationships influence the actions of the followers, to
between the leader and the follower. produce desired organization
Jenssen and Van Yperen (2004) in their performance. That is, the quality of leaders
research in a Dutch firm found that high relationship with followers impacts the
quality exchange relationship consists of leadership behavior.
Fig. 2: Quality of leader — follower relationship and follower’s mental model

Prepared based on Lord & Brown (2001)
HQ* High L eaders hip

F ollower’s mental model
E ffec tivenes s
L eader • About thems elves (organization
L Q* • About leaders L ow performanc e
* HQ – High Quality Leader - follower relationship

* LQ – Low Quality Leader - follower relationship
NHRD Apr09 - 1.p65 11 5/2/2009, 3:25 PM

Howell and Shamir (2005) mention that if the relationship between leaders and
followers have two distinct types of their followers is ‘socialized’, there will be
relationships with their leaders – constant discussion on ‘goals’ as well as
personalized and socialized with ‘means’ to achieving them. Nature of
consequences as shown in Fig. 3. relationship between leaders and the
followers becomes another moderating
The Fig. 3 shows the consequences of the variable for impact of strategic leadership
two distinguished types of relationships behavior on organization performance.
followers have with their leaders.
Any organization that relies on the ability
Followers with personalized relationship
of a single person at the top is living
have blind faith on their leaders. In this
dangerously, observes Probst and Raisch
relationship, leader feels empowered.
(2005). Organizational crisis, which
There is danger that leader may hijack the
includes both bankruptcy and a dramatic
organization towards his own agenda. On
fall in market value, has increasingly
the other hand, if followers have socialized
affected blue chip companies in recent
relationship with their leaders, then their
years. Probst and Raisch (2005) have
relationship is for a specific mission.
carried out in-depth analysis of the 100
Followers and leaders have constant
largest organizational crises during the
discussion on ‘means’ and ‘outcomes’.
year 2000 – 2005, to identify the root
Under this relationship, leader cannot
causes including the role CEO leadership
hijack the organization, as he or she will
played in this crisis. The diagram below
be questioned by the followers. This
shows, how the successful companies
implies that the nature of relationship
suddenly crash.
between leaders and their followers will
influence the organization performance. If Autocratic CEO leadership in an
the relationship is personalized, then the environment of excessive growth, drives
organization will blindly follow the goals the company to uncontrolled changes by
set by the leaders. In such a scenario, the diversifying in to unrelated businesses, in
leader can hijack the organization for his order to sustain the momentum of
own agenda, which may or may not be in excessive growth. This gets compounded
organization’s interest. On the other hand, by excessive success culture marked by
Fig. 3: Organization consequences of follower’s relationship with leaders

(prepared based on Howell & Shamir (2005))
Personalised Leader can hijack the

Blind faith Leader feels
organization to meet
on leader empowered
own agenda
Followers
Mission Constant
congruent discussion
Socialised Leader cannot hijack
relationship with leader
on, ’means’
and
‘outcomes’
NHRD Apr09 - 1.p65 12 5/2/2009, 3:25 PM

Fig. 4 – Causes of Company Crash Based on Probst et al. (2005)
• Autocratic leadership Burnout

• Excessive growth syndrome
• Excessive success
• Unrelated M& A
culture
Organization
Crash
• Weak Leadership in
relation to sub- • Stagnant growth Premature aging
ordinates / unions • Clinging to status quo syndrome
• Lacking success culture
excessive bonuses and internally personalized bureaucracy i.e. people

competitive culture, all of these lead the in power decide what happens and
organization to burn out and eventually others follow.
crash. Similarly, in the organizations which
have weak leadership suffer from lack of Javidan and House (2002) in their
success culture. This results in stagnation, Global Leadership and Organizational
premature aging and financial crash of an Behavior Effectiveness (GLOBE) project
organization. surveyed over 18000 managers across
622 countries have reaffirmed that in
From these researches, one finds that Indian Culture, Power distance in the
following factors could lead to disastrous organizations are high.
consequences for the organization –
• Excessive job demand Therefore, there is a great chance that
Indian business organization will either
• Excessive monetary reward have leadership with close personalized
• High quality but personalized leader relationship with followers who blindly
– follower relationship follow them or leaders who are distant
from their followers.
• Low quality leader – follower
relationship Either of these two scenarios will further
increase the vulnerability of Indian
The first two factors as we all know are
business organization.
getting increasingly more pronounced in
Indian business context. Jobs are becoming Overall, therefore our business
more demanding and monetary rewards organizations are very vulnerable to being
in form of performance bonuses and stock hijacked by powerful leaders with blind
options are increasingly becoming followings leading to organization crash.
common place as well.
From the media reports, it appears that
In terms of quality and nature of leader-
Satyam Infotech is perhaps a recent
follower relationship, let us look at Indian-
example of such an organization crash
social culture.
led by powerful promoter Chairman
Hofstede (1980) in his study of 40 countries Ramlingam Raju. He appears to have
established that Indian culture consists never been questioned by his management
of high power distance which promotes team members. They blindly followed him.
NHRD Apr09 - 1.p65 13 5/2/2009, 3:25 PM

How do we prevent organization getting first five years of this millennium,
hijacked to personal agenda of leaders? recommend that, to avoid organization
First and foremost, value base is very crisis, CEO needs to ensure –
important for a leader under such situation. • Sharing of power with team members
Value base will be the moral compass
which will guide the leader to choose the • Establish process of ‘checks’ and
right from wrong under moments of ‘balance’
extreme pressure and temptations. • Create bottom up culture that
Secondly, leader must develop a strong top encourages constructive questioning
management team who are totally aligned • Promote trust through openness in
to values and mission of the organization. communication
Such members of the top management
• Promote integrity and cooperation
team will have, ‘socialized relationship’
with the leader. Consequently there will be We need to assess the organizations on
healthy climate of constant discussions and these dimensions and facilitate building
scrutiny of ‘means’ and ‘outcomes’. Probst appropriate processes and culture in our
and Raizch (2005) based on their analysis organizations so as to avert such disasters
of top 100 organization crisis during the in future.
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NHRD Apr09 - 1.p65 15 5/2/2009, 3:25 PM

HOW TO IMPROVE PERFORMANCE
IN ALL PARTS OF LIFE
STEWART D. FRIEDMAN
Abstract
Leadership, as this article explains is not just excelling in the professional sphere, but in all
walks of life. It is a holistic development that makes an individual achieve his/her goals
in all domains. The article presents the idea of ‘Total Leadership Development’ which
rests on the principles of being real, acting with integrity and being innovative with
everything that one does.
About the Author

Stewart D. Friedman is a Practice Professor of Management at
the University of Pennsylvania’s Wharton School in Philadelphia
and the founding director of the Wharton School’s Leadership
Program. He has consulted with a wide range of organizations
and executives, including Jack Welch and Vice President Al Gore;
he serves on numerous advisory boards; and he conducts
workshops globally on leadership and the whole person, creating
change, and strategic human resources issues. Prof. Friedman is
author of works, including his 2008 book, the best-selling and award-winning Total
Leadership: Be a Better Leader, Have a Richer Life. His 2000 book, Work and Family –
Allies or Enemies?, was recognized by the Wall Street Journal as one of the field’s
best. Working Mother magazine recognized him as being one of America’s most
influential men for having improved conditions for working parents. The New
York Times noted that his students talk him “with a mixture of earnest admiration,
gratitude, and rock star adoration.” To learn more, visit www.totalleadership.org.
In my research and coaching work over the more sense to pursue excellent
past two decades, I have met many people performance as a leader in all four domains
who feel unfulfilled, overwhelmed, or – achieving what I call “four-way wins” –
stagnant because they are forsaking not trading off one for another but finding
performance in one or more aspects of their mutual value among them. This is the main
lives. They aren’t bringing their leadership idea in a program called Total Leadership
abilities to bear in all of life’s domains – that I teach at the Wharton School and at
work, home, community, and self (mind, companies and workshops around the
body, and spirit). Of course, there will world. “Total” because it’s about the whole
always be some tension among the person and “Leadership” because it’s about
different roles we play. But, contrary to the creating sustainable change to benefit not
common wisdom, there’s no reason to just you but the most important people
assume that it’s a zero-sum game. It makes around you.
NHRD Apr09 - 1.p65 16 5/2/2009, 3:25 PM

Scoring four-way wins starts by taking a fiancée but also on the formal succession
clear view of what you want from and can track for CEO. He’s a better leader in all
contribute to each domain of your life, now aspects of his life because he is creatively
and in the future, with thoughtful enhancing his performance in all domains
consideration of the people who matter of his life and leading others to improve
most to you and the expectations you their performance by encouraging them to
have for one another. This is followed better integrate the different parts of their
by systematically designing and lives, too.
implementing carefully crafted
experiments – doing something new for a Kenneth is not alone. Workshop
short period to see how it affects all four participants assess themselves at the
domains. If an experiment doesn’t work beginning and the end of the program, and
out, you stop or adjust, and little is lost. If they consistently report improvements in
it does work out, it’s a small win; over time their effectiveness, as well as a greater sense
these add up so that your overall efforts of harmony among the once competing
are focused increasingly on what and who domains of their lives. In a study over a
matter most. Either way, you learn more four-month period of more than 300
about how to lead in all parts of your life. business professionals (whose average age
was about 35), their satisfaction increased
This process doesn’t require inordinate by an average of 20% in their work lives,
risk. On the contrary, it works because it 28% in their home lives, and 31% in their
entails realistic expectations, short-term community lives. Perhaps most significant,
changes that are in your control, and the their satisfaction in the domain of the self
explicit support of those around you. Take, – their physical and emotional health and
for instance, Kenneth Chen, a manager I their intellectual and spiritual growth –
met at a workshop in 2005. (All names in increased by 39%. But they also reported
this article are pseudonyms.) His that their performance improved: at work
professional goal was to become CEO, but (by 9%), at home (15%), in the community
he had other goals as well, which on the (12%), and personally (25%). Paradoxically,
face of it might have appeared conflicting. these gains were made even as participants
He had recently moved to Philadelphia and spent less time on work and more on other
wanted to get more involved with his aspects of their lives. The process is pretty
community. He also wished to strengthen straightforward, though not simple. In the
bonds with his family. To further all of sections that follow, I will give you an
these goals, he decided to join a city-based overview of the process and take you
community board, which would not only through the basics of designing and
allow him to hone his leadership skills but implementing experiments to produce
also have benefits in the family domain. It four-way wins.
would give him more in common with his
sister, a teacher who gave back to the The Total Leadership Process
community every day, and he hoped his
The Total Leadership concept rests on three
fiancée would participate as well, enabling
principles:
them to do something together for the
greater good. He would feel more • Be real: Act with authenticity by
spiritually alive and this, in turn, would clarifying what’s important
increase his self-confidence at work. Now,
about three years later, he reports that he • Be whole: Act with integrity by
is not only on a community board with his respecting the whole person
NHRD Apr09 - 1.p65 17 5/2/2009, 3:25 PM

• Be innovative: Act with creativity by priorities. Examples: record visits to the
experimenting with how things get gym along with changes in energy levels;
done. track the times of day when you feel most
engaged or most lethargic.
You begin the process by thinking, writing,
and talking with peer coaches to identify Planning & Organizing: Taking actions
your core values, your leadership vision, designed to better use time and prepare
and the current alignment of your actions and plan for the future. Examples: use a
and values – clarifying what’s important. PDA for all activities, not just work; share
Peer coaching is enormously valuable, at your schedule with someone else; prepare
this stage and throughout, because an for the week on Sunday evening.
outside perspective provides a sounding Rejuvenating & Restoring Designing
board for your ideas, challenges you, gives Experiments: Attending to body, mind,
you a fresh way to see the possibilities for and spirit so that the tasks of daily living
innovation, and helps hold you and working are undertaken with renewed
accountable to your commitments. power, focus & commitment. Examples:
You then identify the most important quit unhealthy physical habits (smoking,
people – “key stakeholders” – in all drinking); make time for reading a novel;
domains and the performance expectations engage in activities that improve emotional
you have of one another. Then you talk and spiritual health (yoga, meditation, etc.)
with them. These insights create Appreciating & Caring: Having fun with
opportunities for you to focus your people (typically, by doing things with
attention more intelligently, spurring coworkers outside work), caring for others
innovative action. Now, with a firmer & appreciating relationships as a way of
grounding in what’s most important, and bonding at a basic human level to respect
a more complete picture of your inner the whole person, which increases trust.
circle, you begin to see new ways of making Examples: join a book group or health club
life better, not just for you but for the people with coworkers; help your son complete
around you. The next step is to design his homework; devote one day a month to
experiments and then try them out during community service.
a controlled period of time.
Focusing & Concentrating: Being
Our research has revealed that most physically present, psychologically
successful experiments combine present, or both when needed to pay
components of nine general categories. attention to stakeholders who matter most.
Thinking about possibilities in this way Sometimes this means saying no to
will make it easier for you to conceive of opportunities or obligations. It includes
the small changes you can make that will attempts to show more respect to
mutually benefit your work, your home, important people encountered in different
your community, and yourself. Most domains and the need to be accessible to
experiments are a hybrid of some them. Examples: turn off digital
combination of these categories: communication devices at a set time; set
Tracking and Reflecting: Keeping a record aside a specific time to focus on one thing
of activities, thoughts and feelings (and or person; review e-mail at preset times
perhaps distributing it to friends, family, during the day.
and coworkers), to assess progress on Revealing & Engaging: Sharing more of
personal and professional goals, thereby yourself with others – and listening – so
increasing self-awareness and maintaining they can better support your values and the
NHRD Apr09 - 1.p65 18 5/2/2009, 3:25 PM

steps you want to take toward your community tend to revolve around
leadership vision. By enhancing improving relationships and contributing
communication about different aspects of more to society. For the self, it’s usually
life, you demonstrate respect for the whole about improving health and finding
person. Examples: have weekly greater meaning in life.
conversations about religion with spouse;
As you think through the goals for your
describe your vision to others; mentor a
experiment, keep in mind the interests and
new employee.
opinions of your key stakeholders and
Time Shifting & “Re-Placing”: Working anyone else who might be affected by the
remotely or during different hours to changes you are envisioning. Some
increase flexibility and thus better fit in experiments benefit only a single domain
community, family, and personal activities directly, while having indirect benefits in
while increasing efficiency; questioning the others. For example, setting aside three
traditional assumptions and trying new mornings a week to exercise improves your
ways to get things done. Examples: work health directly but may indirectly give you
from home; take music lessons during your more energy for your work and raise your
lunch hour; do work during your self-esteem, which in turn might make you
commute. a better father and friend. Whether the
benefits are direct or indirect, achieving a
Delegating & Developing: Reallocating four-way win is the goal. That’s what
tasks in ways that increase trust, free up makes the changes sustainable: Everyone
time, and develop skills in yourself and benefits.
others; working smarter by reducing or
eliminating low-priority activities. Identify Possibilities
Examples: hire a personal assistant; have a
Open your mind to what’s possible and try
subordinate take on some of your
to think of as many potential experiments
responsibilities.
as you can, describing in a sentence or two
Exploring & Venturing: Taking steps what you would do in each. At first blush,
toward a new job, career, or other activity conceiving of experiments that produce
that better aligns your work, home, benefits for all the different realms may
community, and self with your core values seem a formidable task. After all, if it were
and aspirations. Examples: Take on new easy, people wouldn’t be feeling so much
roles at work, such as a cross-functional tension between work and the rest of their
assignment; try a new coaching style; join lives. But I’ve found that most people
the board of your child’s day care center. realize it’s not that hard once they approach
the challenge systematically.
Designing Experiments
Conversations about work and the rest of
To pursue a four-way win means to life tend to emphasize segmentation.
produce a change intended to fulfill However, it might be better to make
multiple goals that benefit each and every boundaries between domains more
domain of your life. In the domain of work, permeable, not thicker. The very
typical goals for an experiment can be technologies that make it hard for us to
captured under these broad headings: maintain healthy boundaries among
taking advantage of new opportunities for domains also enable us to blend them in
increasing productivity, reducing hidden ways – unfathomable even a decade ago –
costs, and improving the work that can render us more productive and
environment. Goals for home and more fulfilled. The challenge we all face is
NHRD Apr09 - 1.p65 19 5/2/2009, 3:25 PM

learning how to use them wisely, and smart To set up your own scorecard for four-way
experiments give you an opportunity to wins, use a separate sheet for each
increase your skill in doing so. The main experiment; at the top of the page, write a
point is to identify possibilities that brief description of it. Then record your
will work well in your unique situation. goals for each domain in the first column.
All effective experiments require that In the middle column, describe your results
you question traditional assumptions metrics: how you will measure whether the
about how things get done, as the sales goals for each domain have been achieved.
director did. In the third column, describe your action
metrics – the plan for the steps you will take
Whatever type you choose, the most useful
to implement your experiment.
experiments feel like something of a
stretch: not too easy, not too daunting. It As you begin to implement your plan, you
might be something quite mundane for may find that your initial indicators are too
someone else, but that doesn’t matter. broad or too vague, so refine your
What’s critical is that you see it as a scorecard as you go along to make it more
moderately difficult challenge. useful for you. The main point is to have
Coming up with possibilities is an exercise practical ways of measuring your
in unbounded imagination. But when it outcomes and your progress toward them,
becomes time to take action, it’s not practical and the approach you take only needs to
to try out more than three experiments at work for you and your stakeholders.
once. Now the priority is to narrow the list
Workshop participants have used all
to the three most-promising candidates by
kinds of metrics: cost savings from
reviewing which will:
reduced travel, number of e-mail
• Give you the best overall return on your misunderstandings averted, degree of
investment satisfaction with family time, hours spent
volunteering at a teen center, and so on.
• Be the most costly in regret and missed
Metrics may be objective or subjective,
opportunities if you don’t do it
qualitative or quantitative, reported by
• Allow you to practice the leadership you or by others, and frequently or
skills you most want to develop intermittently observed. For examples,
please visit www.totalleadership.org.
• Be the most fun by involving more of
what you want to be doing
Small Wins for Big Change
• Move you furthest toward your vision
of how you want to lead your life Experiments shouldn’t be massive, all
encompassing shifts in the way you live.
The investment in a well-designed The best experiments let you try something
experiment almost always pays off because new while minimizing the inevitable risks
you learn how to lead in new and creative associated with change. When the stakes
ways in all parts of your life. are smaller, it’s easier to overcome the fear
of failure that inhibits innovation. You start
Measuring Progress
to see results, and others take note, which
The only way to fail with an experiment is both inspires you to go further and builds
to fail to learn from it, and this makes useful support from your key stakeholders.
metrics essential. Failed experiments give Another benefit of the small-wins approach
you, and those around you, information to experiments is that it opens doors that
that helps create better ones in the future. would otherwise be closed.
NHRD Apr09 - 1.p65 20 5/2/2009, 3:25 PM

By framing an experiment as a trial, you in it. When I spoke with him 18 months
reduce resistance because people are more after he’d started, he acknowledged that
likely to try something new if they know he’d had a hard time coping with the loss
it’s not permanent and if they have control of control over tactical business matters,
over deciding whether the experiment is but he described his experiments as “a
working according to their performance testament to the idea of winning the small
expectations. But “small” is a relative term battles and letting the war be won as a
– what might look like a small step for you result.” He and his leadership team both
could seem like a giant leap to me, and vice felt more confident about the firm’s new
versa. Large-scale change is grounded in organizational structure.
small steps toward a big idea. So while the
steps in an experiment might be small, the People try the Total Leadership program
goals are not. for a variety of reasons. Some feel
unfulfilled because they’re not doing
Ismail, a successful 50-year-old
what they love. Some don’t feel genuine
entrepreneur and CEO of an engineering
because they’re not acting according to
services company, described the goal
their values. Others feel disconnected,
for his first experiment this way:
isolated from people who matter to them.
“Restructure my company and my role
They crave stronger relationships, built
in it.” Ismail designed practical steps
on trust, and yearn for enriched social
that would allow him to move toward
networks. Still others are just in a rut.
his large goal over time. His first
They want to tap into their creative energy
experiments were small and achievable.
but don’t know how (and sometimes lack
He introduced a new method that both
the courage) to do so. They feel out of
his colleagues and his wife could use
control and unable to fit in all that’s
to communicate with him. He began to
important to them.
hold sacrosanct time for his family and
his church. As he looked for ways to free You have to know how to look for four-
up more time, he initiated delegation way wins and then find the support and
experiments that had the effect of flattening zeal to pursue them. No matter what your
his organization’s structure.
career stage or current position, you can
These small wins crossed over several be a better leader and have a richer life – if
domains, and eventually he did indeed you are ready and willing to rise to the
transform his company and his own role challenge.
Author’s Note
This article is adapted from “Be a Better Leader, Have a Richer Life”, an article by Stewart D.
Friedman that appeared the April 2008 issue of Harvard Business Review.
All rights reserved.
NHRD Apr09 - 1.p65 21 5/2/2009, 3:25 PM

PACE, THEN LEAD
PAUL HERSEY
Abstract
Leaders influence others through both personal power and position power, though these are
modern terms given to the age old question of whether it is better to rule by love or fear. The
answer to that question is that both are needed in order to be an effective leader because what
works in one situation may not be what is needed in another.
About the Author

Paul Hersey is an internationally renowned behavioral scientist,
recognized by business leaders around the world as one of the
outstanding authorities on training and human resource
development. His research at the Center for Leadership Studies led
to the development of the Situational Leadership® Model. This
approach to leadership has been used to train over 14 million
managers including those in some of the most well known Fortune
500 companies. The model reminds us that it is not enough to
describe your leadership style or communicate your intentions. A Situational Leader
assesses the performance of others and takes responsibility for making things happen.
Founder and Chairman of the Board of the Center for Leadership Studies, Paul
Hersey’s current passion resides with online training and the personalized
development tools that technology makes possible.
Etzioni (1961) described personal power as how willing those above are to dole out
the extent to which a leader gains the their power. One way to increase their
confidence and respect of others and has willingness to share and your effectiveness
the ability to generate cohesiveness and as a leader is to build upon your personal
commitment. At its most basic level, it is power by establishing rapport. Part of
about the willingness of others to follow a establishing rapport is being able to
leader, and that has to be earned. communicate effectively in a way that is
comfortable for the people you are
Position Power differs in that it is the extent
attempting to influence. To make people
to which the leader has rewards, a
get comfortable you have to get in step with
recognized formal role and if needed,
them – pace with them.
sanctions to bring to bear in reference to
their people. The confidence and trust
Rapport is about being attuned to other
leaders develop with the people above
people verbally or nonverbally so that they
them often dictates the willingness of
are comfortable and have trust and
upper management to delegate power
confidence in you. Too often leader’s listen
down to them.
just enough to form their rebuttal or make
A leader’s behavior impacts how willing their case instead of hearing the way in
others are to follow them and subsequently which the words are expressed or truly
NHRD Apr09 - 1.p65 22 5/2/2009, 3:25 PM

seeing the facial features and body questioned and challenged at every
language for what it is, the second half of request. Attempting to influence people
the message. with these leadership behaviors may very
well be what is needed when performance
Effective communication requires that you
is low, but to be effective in this directive
demonstrate interest, understanding and
style it requires a degree of position power
genuine concern for others. Faking it won’t
to support or drive the leader’s behavior.
work because people hear your tone and
pick up unconscious cues about your Oftentimes a leader knows what the right
sincerity. As a Leader you must take the thing to do is but realizes that, if they do
time to develop rapport so that others can actually behave that way people may not
feel comfortable and have trust and follow willingly. In that instance they know
confidence in you. intuitively that they can’t rely on the most
obvious base of power that matches the
How do you develop rapport? You reflect
leadership behaviors and would be most
what others do, know or assume to be true
effective in a given situation, so they have
by doing something similar or matching
learned to be more creative in how they
some part of their ongoing experience. It’s
attempt to influence others. They
called pacing.
compensate by using less effective
When you have established rapport with leadership behaviors that they do have the
people, they are more apt to follow your power to support. They get the job done,
lead. And that is the point, isn’t it: to be but it isn’t quick and painless.
able to influence the behaviors of others in
Don’t be the leader who has to compensate
a way that impacts positively on
for their lack of power. Make a plan to
performance? That requires a measure of
develop your power by figuring out what
adaptability on the part of a leader.
you do that is eroding your effectiveness
An effective leader needs to have enough and stop it. Come up with a list of what
range in their own behavior to pace with you want to do more of and what you want
others with whom they are interacting. to do less of. Don’t go it alone. Enlist a
That’s because there is no single right way. person who has a significant impact on
As a leader you need to be flexible enough your success. Solicit their help and
to select from a variety of influence suggestions so you can earn the personal
behaviors according to both the demands power necessary to be able to ask for the
of your specific situation and your allocation of the position power needed to
potential to positively influence the be an effective leader.
outcome.
As a leader you can build a case and
Essentially, power is your influence negotiate for an increase in position power.
potential. For instance, ever wonder why It is increasing your personal power that
some leaders can give orders with takes work and time as you prove yourself
complete authority while others are worthy!
NHRD Apr09 - 1.p65 23 5/2/2009, 3:25 PM

LEADERSHIP THEORY: IN EVOLUTION
N.S. RAJAN
Abstract
Leadership as a phenomenon has enthused the minds of researchers from time immemorial. The
canon of 'leadership' is constitutive of writings of both past philosophers and modern theorists;
the difference being, the nomenclature of 'leadership' used by ancient scholars - of rulers,
politicians and heroes, was unlike that used by modern theorists. This article explores the
illuminating journey that 'leadership' has travelled through the minds of great people. It
throws light upon the historical evolution of leadership theory, reflects upon definitions and
theories and also questions ambiguous facets of this ever evolving concept. Moreover, the
article emphasizes on the need for an integrated framework for leadership which synthesizes
different approaches to form a more comprehensive theory of leadership. It also calls for
constructing a 'roadmap' for developing leaders who can steer organizations through
uncharted waters to sustained glory and success.
About the Author

N.S. Rajan, a Business Management alumnus of XLRI, is Partner in
the Human Capital Practice of Business Advisory Services in Ernst
& Young India. He is also the Global Leader - HR Advisory of Ernst
& Young. With over two and half decades of work experience, in
both industry and consulting across many functions, Rajan brings
with him comprehensive knowledge of the issues facing the human
resources function. Rajan has been accorded the "HR Professional
of the Year 2008" for excellence and contribution to human resources
function by NHRD Network, the country's largest association of HRD professionals.
He can be reached at ns.rajan@in.ey.com.
Who should lead us? Plato, the Greek even as he stays focused on achieving
philosopher, poses this critical question in results. Although, the nomenclature of
his Republic, written around 380 BC, where 'leadership' was not in vogue,
he envisages an Ideal State led by specially philosophical speculations and insightful
educated leaders, the "philosopher kings". histories of yore have dwelt in penetrating
Kautilya, the renowned prime minister of depth upon rulers, politicians and heroes,
the Maurya Empire in the fourth century offering us early frameworks. Leadership
BC, in his economic treatise Arthashastra, research has gained prominence among
dwelt on the role of a king as a leader who researchers in the last two centuries on
recognizes the need to serve his subjects account of rapid industrialization.
NHRD Apr09 - 1.p65 24 5/2/2009, 3:25 PM

Our understanding of the concept of provide a frame work, to build concepts
leadership has transformed radically since for the future, and to convert theory to
1300 when the word "leader" first appeared action.
in the English language originating from
Van Seters and Field, Fleet and Yukl,
the root leden meaning "to travel" or "show
Armandi et al have reviewed the empirical
the way." (The Oxford English dictionary)
research and developments over the past
Leadership as a word is said to have
many decades paving a systematic way to
entered the lexicon much later. "Great
understand how leadership science has
necessities call forth great leaders", wrote
evolved. Dorfman (1996) suggested
Abigail Adams in 1790. The need for
leadership research is often complex and
leaders has been felt over the ages across
not as simplistic as it seems, though he
all walks of life.
depicted leadership research passing
Who is a leader? Is there an ideal business through three eras i.e. trait, behavior and
leader? What attributes make an effective contingency eras. The categorization
leader? Is leadership implicitly 'good'? provided by Van Seters and Field (1990)
How is a leader different from a manager? provides a practical framework, using
Can organizations create leaders? In which an attempt has been made to
current times, these questions have been comment on some of the keystones of the
dwelt upon by researchers who have arch of leadership thought, grouping
endeavored to unravel the way forward. related schools of research rather than
"Leadership is one of the most observed being bound by a chronological order of
and least understood phenomena on earth" discoveries in the vast area of leadership.
observed Burns (1978), three decades ago.
The 20th century in particular has Personality
witnessed a wide range of theories being
put forth. The extent of interest led Stogdill
(1981) to observe ironically that "there are • Great Man Theory - Bowden 1927,
almost as many definitions of leadership Carlyle 1841 , Galton 1869
as there are persons who have attempted • Trait Theories - Bingham 1927
to define the concept". Warren Bennis
(1985) too lamented the fact that there are
over 300 definitions of leadership, even as Early theories on leadership primarily
the world clearly recognizes the dire quest focused on historical personalities and
for leaders. what made them strong leaders, with an
attempt to equate leadership with
Yukl (1981) noted that "the term leadership personality. Great Man theory contended
is a word taken from the common that leadership traits are inherited. This
vocabulary and incorporated into the school was based on the belief that leaders
technical vocabulary of scientific discipline are exceptional people, born with innate
without being precisely defined." Without qualities, destined to lead. Leadership was
a universal definition, how does an thought of as a concept which is primarily
organization recognize a leader, or even go male, military and Western. Trait theories
a step forward to create one. Many scholars identified traits that differentiate leaders
and practitioners have endeavored to from non-leaders. This school also focused
uncover assumptions, discover new on the lists of traits or qualities associated
contours, and question uncertainties. A with leadership. Research findings further
lucid system of thought on the emergence focused on being able to identify traits that
of leadership theory is hence essential to distinguish leaders from non-leaders. The
NHRD Apr09 - 1.p65 25 5/2/2009, 3:25 PM

trait theories often could not accommodate to deliberating on their traits or the power
leader- subordinate's interactions and was they possess, leading empirical studies to
disconnected from situational conditions. focus on behavioural traits rather than
Leadership then was viewed from the point personality. The two major studies on
of power and influence, where leadership behavioural aspects of leadership were the
was examined as a relationship between Michigan study and the Ohio state studies
people. which highlighted initiating structure
(leader emphasis on accomplishment of
tasks) and consideration (leader concern
Influence
for individual and group cohesion). A
related area built on the dimension of
• Power Relation Theories -French Michigan studies was the managerial style
1956, French and Raven 1959 grid which dwelt on the two corner stones
of care for people and concern for
• Persuasion Theories - Schenk 1928
production, where five styles of leadership
were identified (Blake and Mouton, 1964).
This school recognized leadership as This concluded that managers who are able
relation between individuals and not a to score highly on both the dimensions of
characteristic of the solitary leader and people and production have performed
attempted to explain leadership better than the others due to what has been
effectiveness in terms of source and use of recognized as the best form of team
power. This school acknowledged that management (Wren, D. 1994). This view
leadership is a process that involves did not take into account the fact that the
relationship between people and can right leader types are likely to be
therefore not be understood by focusing moderated by constraints which are
exclusively on leadership as a specialized situational in nature. Theories X and Y tried
role. to provide a framework on who needs
direction and who is self-motivated
Behavior (McGregor D., 1960).
Situation
• Early Behavior Theories - Bass 1960,
Fleishman, Hariris and Burtt 1955,
Likert 1961 • Environment Theory - Hook 1943,
• Late Behavior Theories - Blake and Katz and Kahn 1978
Mouton 1964, Bowers and Seashore • Social Status Theory- Stogdill 1959,
1966, Argyris 1976, McGregor 1960 Homans 1959
• Operant Theories - Sims 1977, • Socio-Technical Theory - Trist and
Ashour and Johns 1983 Bamforth 1951
The behaviour school concentrated on This school sees leadership as specific to

what leaders actually do rather than on the situation in which it is being exercised.
their qualities. Different patterns of It also proposes that there may be
behavior are observed and categorized as differences in required leadership styles at
'styles of leadership'. The behavioural different levels in the same organization.
theories moved on to understanding Situational aspects gained significant
leadership as what leaders do, as compared attention with a number of empirical
NHRD Apr09 - 1.p65 26 5/2/2009, 3:25 PM

studies highlighting the importance of variables: Leader-member relations, Task
nature of task, social status, relative structure and Position power. The Path-
possession of power and external goal theory identified four possible
environment (Bass, 1985). Situational behaviors exhibited by leaders: Directive,
variables are organization, nature of work, Supportive, Participative and Achieve-
characteristics of subordinates, nature of ment-oriented. Normative theory relates
external environment. The environment leadership behavior to decision making
theories explored how leaders emerge in incorporating 7 contingencies on task
the right place at the right time to take the structures and five alternative styles. Adair
lead. The social-status theories are based laid down a framework for what leaders
on the idea that as individuals complete should do in order to be effective. The
specific tasks, they reinforce the Action Centered Leadership model
expectation that each individual will distinguishes three groups of activities i.e.
continue to act congruent with previous Achieving the Task, Building and
behavior. The leader's and subordinate's maintaining the Team and Developing the
roles are thus defined by mutual Individual, which are highly interrelated.
expectation of their behavior. The socio None can be viewed in isolation, and all
technical theory combined the must receive leadership attention in order
environment and social status theory. for any to work effectively and for
organizational goals to be met. The
Contingency Contingency theories do not explain clearly
why employees follow nor do they offer
prescriptions on suggested behaviors for
• Contingency Theory -Fiedler 1964 different situations.
• Path Goal theory - Evans 1970,
House 1971 Transactional
• Situational Theory - Hersey and
Blanchard 1969, 1977 • Exchange Theories - Dansereau,
• Multiple Linkage Model- Yukl Graen and Haga 1975, Greene 1975,
1971, 1989 Hollander 1958
• Normative Theory - Vroom and • Role Development Theories -

Yetton 1973, Vroom and Jago 1988 Hollander 1979, Jacobs 1970, Graen
and Cashman 1975
• Action Centered Leadership: Adair
1973
This school emphasizes the importance of
Leadership studies then moved on to an the relationship between leader and
important phase of contingency era where followers, focusing on the mutual benefits
major advances were made in the form of derived from a form of 'contract' through
the Fiedler model (Fiedler, 1964), Path-goal which the leader delivers such things as
theory (Bass, 1985) and Normative Theory rewards or recognition in return for the
(Vroom and Yetton, 1973). This school commitment or loyalty of the followers.
represented the view that effective Bass's (1985, 1990) work characterized the
leadership is contingent on one or more exchange period and emphasized the
factors of behavior, personality, influence importance of transactions between leaders
and situation. Fiedler identified leadership and followers as well as leader's role in
situations as a result of three contingency initiating and sustaining interaction. The
NHRD Apr09 - 1.p65 27 5/2/2009, 3:25 PM

importance of influence between leader This school suggested Leadership is
and subordinate returned to focus with the omnipotent in the culture of the entire
transactional approach. Vertical dyad organization. Leaders can create a strong
linkage (Graen, 1975) examines culture so that employees lead themselves.
relationship between leader and followers The paradigm of leadership started getting
on a one on one basis, and the mutual viewed as an intrinsic part of the culture
influence there of, as compared to the of the organization and more importantly
group as a whole. There was emphasis laid enhancing quality of over taking the need
on equitable exchange relationships, and to increase quantity of work (Peters and
individual interactions dominating relation Waterman, 1982, "In Search of Excellence").
between the leader and the group, This era for the first time changes the focus
sometimes almost suggesting that the from quantity enhancement to quality
subordinate could be the leader. enhancement. This school can also be
viewed as an extension of the substitute
Anti-Leadership theories.
• Ambiguity Theories - Pfeffer 1977 Transformation
• Substitute Theories - Kerr and

Jermier 1978 • Charisma Theories - House 1977,
Burns 1978
This school is based on the sentiment that • Self Fulfilling Prophecy - Field
perhaps leadership as a concept cannot 1989, Eden 1984, Bass 1985
really be articulated. The leadership has
been perceived as the perceptual • Leadership Brand – Ulrich and
phenomenon in the mind of the observer. Smallwood, 1999
The numerous approaches to leadership The central concept in this school is change,
led to the view that most research is and the role of leadership in envisioning
inconclusive and there is no universal and implementing the transformation of
understanding of leadership. In the article organizational performance. The task of
"The Ambiguity of Leadership" the leader leadership is one of building, monitoring
is viewed as a symbol indicating to be and reinforcing culture of high expectation.
almost insignificant (Pfeffer, 1977). This Concepts of charisma and transformational
school research also focused on developing ability have started gaining recognition.
leadership substitute. Leadership has also been seen as vision.
The ability to create positive expectations
Culture
(Bass, 1985) has been observed as a primary
role of a leader. The new leader (Bennis and
• Mckinsey 7 S - Pascale and Athos Nanus, 1985) is one who energizes people
1981 to action, develops followers into leaders,
• Theory Z - Ouchi and Jaeger 1978 and transforms organizational members
into agents of change. Ulrich and
• In Search of Excellence -Peters and Smallwood (1993) defined "Leadership is
Waterman 1982 about more than individual, psychological
• Schien Theory - Schien 1985 competencies; it's also about delivering
results. An effective leadership formula is
• Self Leadership - Manz and Sims
leadership as a multiplicative function of
1987
attributes and results." Leaders who are
NHRD Apr09 - 1.p65 28 5/2/2009, 3:25 PM

able to demonstrate both right attributes universal model of leadership continues to
and right results become "Leadership engage researchers.
Brand". Results have been aligned to all
Van Seters and Field (1990) also noted, in
internal and external stakeholders.
their review of literature over the years,
"what is required is a conceptual
The need for an integrative framework
integrating framework which ties the
Leadership theories have thus been an different approaches together, and makes
important area of research in behavioral possible the development of a
sciences, and continues to expand our comprehensive, sustaining theory of
understanding of leaders, leadership, leadership". They depict the progress of
and leadership development systems. leadership theory, in a schematic
While the utility of understanding representation of affiliations and
leadership is beyond doubt, the futility enveloping inter-linkages the development
of being able to create an integrated of view points, as shown below :
?
Integrative era
Self fulfilling prophecy period

Transformational era
Charisma period
Culture era Influence Situation

+
Substitute period
Anti-leadership era
Ambiguity period
Transactional era Role development period
Exchange period
Contingency era Behaviour Personality

+ + Influence + Situation
Sociotechnical period
Situation era
Social Status period
Environment period
Operant period
Behaviour era
Late behaviour period
Early behaviour period
Influence era Persuasion period
Power relations period

Trait period
Personality era
Great man period
Source: Van Seters and Field (1990)
NHRD Apr09 - 1.p65 29 5/2/2009, 3:25 PM

Yukl (1981) suggested an insightful, leaders, and create leadership
integrating framework which can be used development experiences to ensure that
as the basis for furthering research into future leaders possess these attributes.
leadership that aims to link trait, behavior, Leadership theories have contributed to a
situation and leadership effectiveness into great extent in development of leadership
one unified field for future discovery. development methodologies. A practical
P ers onal B ehavioral As pec ts C riterion Is s ues

C harac teris tic As pec t
R eciprocal Influences
L eader Intervening E nd-R es ult

L eader B ehavior
C harac teris tic s V ariables V ariables
• S ubordinate • P roductivity
• 13 C ategories of
• T raits C haracteris tics • E ffectivenes s
behavior
• S kills • G roup • P s ychological Health
• C ompetencies C haracteris tics • Development &
• P hys ical Attributes • R ole C haracteris tics G rowth
• E xternal R es ources
Mic ro
As pec t
L eader P ower E xogenous

Mac ro S ituational V ariable
As pec t
• 5 B as es • T as k/T echnology
• 2 Directions C haracteris tics
• Organizational/
Legal/ P olitical
F actors
Source: Yukl (1981)
In the continuing quest for a universally way forward, rooted in real life situations,
applicable definition of leadership itself, a is of great significance to construct a road
resultant corollary seems to be the map for developing leadership that can
divergence of routes that are being chosen steer and enable sustained organizational
by organizations for developing effective success.
leaders. In the current globalized scenario
with unprecedented challenges all around, The more one reviews literature on this
leadership matters more than ever and vital field with the many strands of
organizations are investing a lot of time and knowledge awaiting a synthesis, the
resources to understand what makes a resultant state of the aspirant still seems to
successful leader. Ulrich and Smallwood be a "tabula rasa", a blank slate. It is vital
(2000) observed that there still is a critical to explore further the realms of what
need to identify a small set of attributes that governs the roadmap of leaders,
successful leaders possess, articulate them leadership, leadership effectiveness, and
in ways that could be transferred across all capability building that creates effective
NHRD Apr09 - 1.p65 30 5/2/2009, 3:25 PM

leaders. Ambiguity continues to prevail custodians of intellectual capital helps
whether the path chosen is the right one. throw light when we endeavour, as
As a student of leadership, my own quest William Blake writes in "Auguries of
for a "golden mean" of consilience that Innocence",
serves as the bridge of understanding,
between "a priori" and "a posteriori" states "To see a world in a grain of sand
of our knowledge, remains intriguingly in
And a heaven in a wild flower
a present-continuous state. Every step
forward and each insight offered, by Hold Infinity in the palm of your hand
eminent scholars, practitioners and And eternity in an hour."
References
Adair John (1973), Action Centered Leadership, McGraw-Hill, London, New York
Adams Abigail (1790), Letter sent in 1790 , Wife of John Adams, America's second President
Ashour, A S and Johns, G (1983). "Leader Influence through Operant Principles: A Theoretical and Methodological Framework,"
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NHRD Apr09 - 1.p65 32 5/2/2009, 3:25 PM

OUR LEADERSHIP JOURNEY
DAVE ULRICH and NORM SMALLWOOD*
Abstract
The authors have specially put together their last decade of work on leadership in this article.
Focusing on the “Effective Leadership” formula, they further explore how Leaders build value
and the importance of paying attention to leadership as an “Organization Capability”.
Moving beyond the conventional approaches to explaining leadership as traits exhibited by
the leader, this article calls for a balanced approach, exploring the results that leadership
must attain. Leadership is not only about developing individual qualities but also about
understanding how those qualities lead to superior performance. Therefore, apart from
having effective attributes, Leadership will be considered effectual if it delivers results in the
four key areas - employees, organization, customers and investors.
About the Authors

Dave Ulrich is a professor of business at the Ross School of
Business, University of Michigan and co-founder of The RBL
Group. He has written 15 books covering topics in HR
and Leadership; is currently on the Board of Directors for
Herman Miller; is a Fellow in the National Academy of
Human Resources; and is on the Board of Trustees of Southern
Virginia University.
Norm Smallwood is cofounder of The RBL Group, he is coauthor
of six books and more than a hundred and fifty articles, including
two co-authored with Dave Ulrich in Harvard Business Review.
Before The RBL Group, Norm was co-founder of The Novations
Group and an internal consultant at Procter and Gamble and at
Esso Resources Canada.
If you google the word leader and value. Much is written and many of the
leadership, there are 487 million hits. That’s same ideas are repeated. In the last decade,
an awful lot of information. If you google we have addressed the issue of how leaders
subordinate and follower there are less than have impact by contributing to this huge
25 million hits. So, almost 20 times more has volume of work with four books and many
been written about leadership than about articles. In this article, we’ll review this
being a good subordinate. Maybe we’ve work and synthesize how we believe we’ve
identified the crux of the leadership contributed a unique perspective around
challenge- not enough followers! four ideas:
Clearly, leadership is a topic where the 1. Leadership is about more
volume of writing does not match the than individual, psychological
* Please do not cite without permission. For further information see www.rbl.net or contact either Dave
Ulrich (dou@umich.edu) or Norm Smallwood (nsmallwood@rbl.net).
NHRD Apr09 - 1.p65 33 5/2/2009, 3:25 PM

competencies; it’s also about delivering • Seven Habits of Highly Effective People
results. An effective leadership formula
• Authenticity
is leadership = attributes * results
(Results Based Leadership, Harvard • Leadership Secrets of Attila the Hun,
Business School Press, 1999) Thomas Jefferson, Buddha, Santa Claus,
etc.)
2. Leaders must focus outside the firm on
investors and customers, as well as • Emotional Intelligence
inside, because results are tied to
• Judgment
multiple stakeholders both inside and
outside the organization. When this is • The Extraordinary Leader
done well, greater market value occurs. • And so on
(Why The Bottom Line Isn’t, Wiley,
2003 and soft cover- How Leaders Build In seminars we frequently ask, “What
Value, Wiley, 2003) makes an effective leader?” The response
is often the same: setting a vision, having
3. Individual leaders matter; but
integrity, communicating, being bold,
leadership matters more. It’s critical
making things happen, and other
to pay attention to leadership as an
personal attributes. Frequently, leadership
organization capability not just
development experiences are organized
leader as individuals. When this
with a day on each attribute.
capability ensures the desired
customer experience, both customers We proposed that this approach was half
and investors are served. (Capitalizing right. Leaders do need to have effective
Your Capability, Harvard Business attributes but leadership is also about
Review, 2004; Leadership Brand, getting results. So, in our 1999 book, Results
Harvard Business School Press, 2007) Based Leadership, we explored four results
that leaders need to deliver:
4. There are two kinds of individual leader
competencies — a set of fundamental • Employee — leaders must increase
competencies — the leadership code employee competence and
and a set of unique competencies commitment as evidenced in
that relate to how leaders connect productivity and retention.
employees with customer —
• Organization — leaders must build
the differentiators. (The Leadership
sustainable capabilities that shape an
Code, Harvard Business School
organization’s identity
Press, 2008)
• Customer — leaders must ensure
Let us review the evolution of these ideas.
customer delight as seen in share of
customer
Results Based Leadership – The Kickoff
• Investor — leaders must build investor
In the late 1990’s we had a simple insight –
confidence in the future as seen in
much of the practice of leadership was
intangible value
focused on individual, psychological
competencies. Virtually every book we It was at this time we realized the
could find then, and to a great extent importance of the relationship between
now, was aimed at individual, leader attributes and results. Neither alone is
competency development (what we called enough, it’s the virtual cycle between them
the attributes of leaders). Popular examples that makes all the difference. We connect
include: attributes and results with SO THAT
NHRD Apr09 - 1.p65 34 5/2/2009, 3:25 PM

and BECAUSE OF. One simple application innovation, service, efficiency, culture or
is that when a leader receives 360-degree shared mindset, and so on. These
feedback, which is about her individual capabilities become the key to sustained
competencies, she must ask the “so that” strategy execution, the deliverables of HR,
query. I must improve this competency and the core identity of the organization.
“so that” I deliver a particular result to one
of my stakeholders. Alternatively, another Customer results
leader delivers results and should ask Ultimately, what happens inside an
the “because of” question. I delivered this organization needs to deliver value to
result “because of” this competency I have customers outside the organization. The
(or lack). tag line being “the employer of choice”
Figure 1: The Virtuous Cycle of Attributes and Results

This simple chart has guided the last ten makes more sense if we are the employer
years of our writing and applications for of choice of employees our customers would
leadership. Let us quickly overview each choose. Using customer criteria as the filter
of four results, and then show how we have for internal management actions validates
explored each of them in the last decade. those actions.
Employee results Investor results

We have articulated a simple formula for What happens inside the organization also
employee results: competence * affects investor confidence for the future.
commitment * contribution. Leaders must Investors invest based on industry
enable employee results in all three areas. favorableness, firm performance, and
Employee competence means that the quality of leadership and organization. We
individual has the skills to do the job. believe that the leadership and
Commitment or engagement is about organization dimension is often the most
investing discretionary energy to do what difficult to specify, but also one that may
it takes to get things done. Contribution is hold a key to firm’s overall market value.
about finding meaning in work.
In the last decade, we have worked to
Organization results further explore each of these four result
areas.
Organization theory has shifted the focus
from structure, shape, and morphology to
Investor Results: Why the Bottom Line
capabilities. Capabilities are the DNA of
Isn’t (or How Leaders Add Value)
companies and determine how things are
accomplished. Sample capabilities include: We began with a very simple question:
speed of change, learning, collaboration, “which of the four results areas are senior
NHRD Apr09 - 1.p65 35 5/2/2009, 3:25 PM

Financial results account for a shrinking proportion of a
company’s market value
1
0.9
0.8
0.7
Confidence in your future
Regression 0.6
of earnings 0.5
and stock 0.4
price 0.3
Confidence in track record
0.2
0.1
0
1977 1982 1987 1992 2002 2005
Figure 2
executives most interested in?” With a few Since 1990, financial results have played a
notable exceptions, senior executives tend decreasing role in market value, so much
to be interested in what investors want so that across industries, by 2005, market
because it aligns with the executives’ value was half earnings and the other
personal interests and because it sustains half intangibles.
the longevity of the firm. So, we began to Intangibles are the factors that give
read and ask questions about how market investors confidence in the future of your
value was derived. Pretty soon we were company versus other competitors in the
reading the work of Baruch Lev, an same industry. These intangibles deter-
economist at NYU who was the world’s mine why two companies in the same
expert on intangibles. At about this time, industry with similar earnings might have
we felt as though our approach to vastly different market values. We synthe-
leadership was going in a very different sized a number of studies on intangibles
direction than what we knew our into an Architecture for Intangibles that
colleagues were studying and we were explains how leaders increase confidence
excited about what we were learning. in future earnings:
Figure 3: Architecture for Intangibles
NHRD Apr09 - 1.p65 36 5/2/2009, 3:25 PM

These intangibles define what leaders must In particular, we wanted to look at internal
do to build capabilities that investors value. organization capabilities from the outside/
We found that intangibles exist in both up in. For example, HR at Intercontinental
and down markets. Hotels sponsored an “Organization (or
intangibles) Audit” where they solicited
• Keep our promises: The organization feedback from not only employees and
has a track record of delivering earnings leaders, but also franchisors, key
in a consistent manner customers, analysts and institutional
• Create a clear, compelling strategy: investors. The process of obtaining this
There is a shared direction about what organization level feedback and
we will win in the industry determining how to act on it was new
ground. The results spoke for themselves-
• Align core competencies: We have they fought off a hostile takeover and were
developed targeted core competencies able to convince analysts that they should
that are consistent with our strategic not continue cost cutting but invest in
direction customer service.
• Enable organization capabilities: We We continue to reflect on the capabilities
have distinct social capabilities that organizations required to achieve
allow us to win through our people and sustainable success. In our recent writing,
organization. we have added to our original list the
capabilities of simplification, social
Organization results: Capitalizing on responsibility, and managing risk. When
Capabilities capabilities integrate diverse HR practices,
and when they are linked to customer
About a year after the publication of How expectations, they build long term
Leaders Build Value, we published an article, sustainability.
“Capitalizing on Capabilities” in the
Customer Results: Leadership Brand
Harvard Business Review, June 2004 that
defined, identified, and operationalized As we turned to the customer results, we
organization capabilities. Organization began to focus on the importance of a brand
capabilities are the fourth level of the that distinguishes a firm by making and
Architecture for Intangibles. We had a acting on promises to customers. We liked
fondness for these issues because we the metaphor of brand because it is so
realized that organization capabilities are clearly tied to business results. As a
the deliverables of strategic HR and marketing concept, brand starts with the
because they have a direct line of sight to customers. Traditionally individual
improving market value. Leaders at competencies for leadership are defined
companies like GE, Singapore Airlines, exclusively inside the company by
P&G and many others discovered how to interviewing high vs. low performing
increase investor confidence by building leaders and then linking the identified
capabilities of leadership, talent, culture, competencies to strategy execution.
and customer connection. In this work, we The more we started with the firm’s brand
suggested that once leaders have defined and the identity of the firm in the mind of
strategy, they should create organization the customer, and worked to identify
capabilities that enable and sustain that leadership behaviours consistent with that
strategy. These capabilities outlast any external brand, the more we were sure that
individual leader, management event, or we had struck gold. We captured our
HR practice. thinking with two conceptual shifts:
NHRD Apr09 - 1.p65 37 5/2/2009, 3:25 PM

1. Individual (focus on the leader as a desired customer experience whenever
person) vs. Organizational (focus on they touch the customer. To do this, the
leadership as a capability) firm must not only build good individual
leaders, but must develop leadership as an
2. Inside the Firm (focus on what happens
organization capability, recognized inside
inside the person or the firm) versus
the firm and also by the market.
Outside the Firm (focus on customer
and investor expectations)
These two shifts are shown in the following FIRM BRAND
(How a firm wants to be known by customers)
figure:
External Celebrity
Celebrity Leaders
Leaders Leadership Brand :
Leadership Brand:
CUSTOMER LEADERSHIP EMPLOYEE
EXPERIENCE DIFFERENTIATIONS ACTIONS
Internal CompetentLeaders
Competent Leaders Leadership
Leadership Systems
Systems Figure 5
An early adopter of these ideas was ADIA-

Figure 4 the Abu Dhabi Investment Authority- the
largest sovereign wealth fund in the world.
Competent Leaders: As we’ve pointed out ADIA has identified three “cultural pillars”
before, this is where most companies spend describing their desired firm brand:
their time - trying to determine the
knowledge and skills of the individual 1. Effective collaboration
leader - and is an important quadrant. 2. Prudent Innovation
Leadership Systems: Aligning selection,
3. Disciplined Execution
development, compensation and retention
systems so integrated and helpful to This perspective guides HR practices
leaders. as well as leadership development
initiatives. HR practices such as selection,
Celebrity Leaders: Famous leaders who
development, performance management
are known to customers and investors help
and retention must all integrate around
by drawing attention to the firm- think
effective collaboration, prudent innovation
Steve Jobs or Bill Gates.
and disciplined execution. As action
Leadership Brand: Leaders at every level learning projects are identified for
who are recognized both by employees as emerging Emirati leaders, they are also
well as customers and investors, for their structured to deliver the cultural pillars or
ability to deliver results in a manner firm brand elements:
consistent with firm brand identify.
Confidence in future drives price: earnings • Effective Collaboration — Each project
multiple and higher market value. will be sponsored by a member of the
Administration Committee and staffed
Leadership brand occurs when external by 2-3 participants in the cohort. In this
customer expectations are translated into way, collaboration occurs among the
internal leadership behaviours, so that, people on the project and between the
leaders ensure employees deliver the project team and the senior executive.
NHRD Apr09 - 1.p65 38 5/2/2009, 3:25 PM

Figure 6
In addition, projects that cross for Leaders (published by Fortune every 2

departments are identified, to ensure years) we discovered that leadership brand
collaboration across organization may be created by 6 integrated steps:
boundaries. We attempt to link customer expectations
• Prudent Innovation — This cultural to leadership actions so that employees
capability can be developed by scoping could see a line of sight from what they did
the project so that it delivers a level of to what customers expect.
impact on the numerator or the
denominator e.g. $150,000 impact. Employee Results: Managing Talent and
Abundance
• Disciplined Execution — Tight time
frames ensure disciplined execution. We have written indirectly about employee
Therefore, each project must be results by helping frame the ways in which
completed in 8, 10 or 12 weeks. Each the HR function can deliver value (HR
project must also be measured for Value Proposition, Harvard Business Press,
impact and a short white paper written 2005). When HR departments, practices,
that describes what the project intended and professionals align their work with the
to accomplish and key learning by the goals of the company and with the
team. This information is made customers, HR builds employee
available to future cohorts. commitment.
In our consulting practice and in our We are currently working to further
research with Hewitt on Top Companies understand employee results in two ways.
NHRD Apr09 - 1.p65 39 5/2/2009, 3:25 PM

First, we have synthesized the key insights Faced with the incredible volume of
that general managers should know about information about leadership, we asked
talent. To do this, we have created a talent our colleague at The RBL Group, Kate
menu of 10 things, which a general manager Sweetman to join us and then turned to
should understand, to build better talent. recognized experts in the field who had
These include defining, assessing, and already spent years sifting through the
investing in talent, as well as managing evidence and developing their own
diversity, matching people and position, theories. These thought leaders had each
and measuring talent. Second, we are published a theory of leadership based on
working to further clarify how people a long history of leadership research and
make meaning at work. While employees empirical assessment of what makes
may be competent (able to do their job) and effective leadership. Collectively, they have
committed (willing to work hard), when written over 50 books on leadership and
they also feel a sense of contribution or performed well over 2,000,000 leadership
meaning, they are more productive. We 360’s. They are the “thought leaders” of
call this creating the abundant organization this field.¶
and draw insights into this phenomenon
from multiple disciplines like positive In our discussions with them we focused
psychology, demographics, high on two simple questions whose answers
performing teams, commitment, and social had always been elusive:
responsibility.
1. What percent of effective leadership is
We clearly believe employee results matter basically the same?
and deserve attention, but to date we have
focused on leadership on investor, 2. If there are common rules that all
organization, and customer results. leaders must master, what are they?
We wanted to understand if an effective

Leadership Code: Back to the Basics leader at, say, Walmart in any ways
During 2008, we realized that we really had resembles an effective leader at Virgin
not impacted how the majority of firms did Airlines? Does an effective leader in a
leadership. Rather than fight this tide, we bootstrapping NGO in any way resemble
decided to do integrative and synthesizing an effective leader at the famously
research around attributes that would bureaucratic United Nations? Does an
allow leadership practitioners to move on effective leader in an emerging market
and join us in our quest to integrate resemble an effective leader in a mature
attributes with results. market? Does an effective leader in
¶ These generous thought leaders included: Jim Bolt (working on leadership development efforts): Richard
Boyatzis (working on the competency models and resonant leadership); Jay Conger (working on leadership
skills as aligned to strategy); Bob Fulmer (working on leadership skills); Bob Eichinger (work with Mike
Lombardo to extend work from Center from Creative Leadership and leadership abilities); Marc Effron
working on large studies of global leaders; Marshall Goldsmith (working on global leadership skills and
how to develop those skills); Gary Hamel (working on leadership as it relates to strategy); Linda Hill
(working on how managers become leaders, and leadership in emerging economies); Jon Katzenbach
(working on leaders from within the organization); Jim Kouzes (working on how leaders build credibility);
Morgan McCall (representing Center for Creative Leadership); Barry Posner (working on how leaders
build credibility); Jack Zenger and Joe Folkman (working on how leaders deliver results and become
extraordinary).
NHRD Apr09 - 1.p65 40 5/2/2009, 3:25 PM

organized crime in any way resemble an Rule 1: Shape the future. This rule is
effective leader in organized religion? Does embodied in the strategist dimension of the
an effective leader in a Swiss leader. Strategists answer the question
pharmaceutical company share any “where are we going?” and make sure that
underlying characteristics with an effective those around them understand the
leader at Google? direction as well. They not only envision,
but also can create a future. They figure
To the first question, the experts varied as out where the organization needs to
they estimated that somewhere in the go to succeed, they test these ideas
range of 50 to 85% of leadership pragmatically against current resources
characteristics were shared across all (money, people, organizational
effective leaders. The range is fairly capabilities), and they work with others to
broad, to be sure, but consistent. From the figure out how to get from the present to
body of interviews we conducted, we the desired future. Strategists have a point
concluded that 60-70% of leadership of view about the future and are able to
effectiveness would be contained in a position their organization to create and
Leadership Code if we could crack it. respond to that future. The rules for
Synthesizing the data, the interviews, and strategists are about creating, defining, and
our own research and experience, a delivering principles of what can be.
framework emerged that we simply call the
Leadership Code. Rule 2: Make things happen. Turn what
you know into what you do. The Executor
In an effort to create a useful visual, dimension of the leader focuses on the
we have mapped out two dimensions question “How will we make sure we get
(Time and Focus) and placed what we are to where we are going?” Executors
calling Personal Proficiency (self translate strategy into action. Executors
management) at the center as an understand how to make change happy,
underlying support for the other two. This to assign accountability, to know which
figure synthesizes the Leadership Code key decisions to take and which to
and captures the five rules of leadership delegate, and to make sure that teams work
that capture leadership DNA. These five well together. They keep promises to
rules can be readily applied to any group multiple stakeholders. Executors make
of leaders: things happen, and put the systems
Figure 7: The Leadership Code
NHRD Apr09 - 1.p65 41 5/2/2009, 3:25 PM

in place for others to do the same. The generation?” Talent Managers ensure
rules for executors revolve around shorter-term results through people while
disciplines for getting things done and Human Capital Developers ensure that the
the technical expertise to the get the right organization has the longer-term
things done right. competencies required for future strategic
success. Just as good parents invest in
Rule 3: Engage today’s talent. Leaders who
helping their children succeed, human
optimize talent today answer the question,
capital developers help future leaders be
“Who goes with us on our business
successful. Human capital developers
journey?” Talent managers know how to
throughout the organization build a
identify, build and engage talent to get
workforce plan focused on future talent,
results now. Talent managers identify what
understand how to develop the future
skills are required, draw talent to their
talent, and help employees see their future
organizations, engage them, communicate
careers within the company. Human
extensively, and ensure that employees
capital developers ensure that the
turn in their best efforts. Talent managers
organization will outlive any single
generate intense personal, professional and
individual. Human capital developers
organizational loyalty. The rules for talent
install rules that demonstrate a pledge to
managers center around resolutions that
building the next generation of talent.
help people develop themselves for the
good of the organization.
Rule 5: Invest in yourself. At the heart of
Rule 4: Build the next generation. Leaders the Leadership Code – literally and
who are Human Capital Developers figuratively – is Personal Proficiency.
answer the question, “who stays and Effective leaders cannot be reduced to what
sustains the organization for the next they know and do. Who they are as human
Figure 8
NHRD Apr09 - 1.p65 42 5/2/2009, 3:25 PM

beings, has everything to do with how • The higher up the organization that the
much they can accomplish, with and leader rises, the more he or she needs
through other people. Leaders are learners: to develop excellence in more than one
from success, failure, assignments, books, of the four domains.
classes, people, and life itself. Passionate
It is very bold to say that these five domains
about their beliefs and interests, they
synthesize and summarize leadership, but
expend an enormous personal energy and
we continue to believe that we have
attention on whatever matters to them.
captured the essence of what attributes
Effective leaders inspire loyalty and
effective leaders need.
goodwill in others because they themselves
act with integrity and trust. Decisive and What’s next?
impassioned, they are capable of bold and
courageous moves. Confident in their After a decade, we are more confident than
ability to deal with situations as they arise, ever about a balanced formula for
they can tolerate ambiguity. leadership: attributes * results. This simple
formula allows us to organize theory,
As we have worked with these five rules research and practice of leadership. The
of leadership, we can make some summary summary of our publications in leadership
observations. can be seen in Figure 8.
• All leaders must excel at Personal We know there is more to do. As we look
Proficiency. Without the foundation of ahead, there are more stakeholders that
trust and credibility, you cannot ask have results for leaders to build value for.
others to follow you. While individuals For example, we are interested in
may have different styles (introvert vs. communities and how leaders ensure social
extrovert, intuitive vs. sensing, etc.), any responsibility. We’re also interested in how
individual leader must be seen as investors, venture capitalists, private
having personal proficiency to engage equity funds, sovereign wealth funds and
followers. This is probably the toughest others determine quality of leadership
of the five domains to train and some during due diligence processes. Our initial
individuals are naturally more capable research into this area and the global
than others. economic condition suggests current
approaches are relatively primitive. This
• Effective leaders have one towering future work will continue to flesh out the
strength. Most successful leaders have mix of attributes and results that
at least one of the other four roles in characterize effective individual leaders
which they excel. Most are personally and organization leadership capabilities.
predisposed to one of the four areas.
These are the signature strengths of As we have done this body of work, we
your leaders. have better defined the importance of both
leaders as individuals and leadership as
• All leaders must be at least average in systems, of both attributes of effective
his or her “weaker” leadership leaders and results of effective leadership,
domains. It is possible to train someone and of leaders serving stakeholders both
to learn how to be strategic, execute, outside and inside their organizations.
manage talent, and develop future
talent. There are behaviors and skills We have many ideas that continue to build
that can be identified, developed, and on this logic over the next decade and hope
mastered. to use fewer words to have more impact.
NHRD Apr09 - 1.p65 43 5/2/2009, 3:25 PM

LINKING STRATEGIC LEADERSHIP AND HUMAN
RESOURCE MANAGEMENT
GARY YUKL and RUBINA MAHSUD
Abstract
The literatures on human resources management and on strategic leadership have developed
separately, and important linkages between the two subjects have not received much attention.
Leaders can influence the quality of human resources in a company, and human resource
specialists can improve the quality of strategic leadership by executives. We describe how
HRM and strategic leadership are inter-related and how they jointly influence the financial
performance of a company.
About the Authors

Gary Yukl is a Professor of Management at UAlbany, and his
primary areas of research and teaching include leadership,
interpersonal influence, and management development. He has
received several awards for his research and is a Fellow of the
Academy of Management and the Society of Industrial-
Organizational Psychology. Yukl is the author of many articles
and books, including Leadership in Organizations (Prentice Hall,
7th edition, 2009), which is used in many countries including India.
He can be reached at G.yukl@albany.edu.
Rubiná Mahsud is an Assistant Professor in the Albers School
of Business at Seattle University. Her primary areas of teaching
and research include business strategy and strategic leadership.
She has a Ph.D. in Organizational Studies from UAlbany and
has earlier degrees in medicine and public health (including an
MD). She can be reached at rmahsud@yahoo.com.
Introduction the quality of human resources, and how

HRM programs influence the quality of
The literature on strategic leadership
strategic leadership are seldom examined.
describes the influence of top executives on
The purpose of this article is to examine
organizational processes that determine
related aspects of the two literatures that
the financial performance and survival of
deserve more attention.
a company. The literature on human
resource management (HRM) describes
Strategic Leadership and Company
practices and programs used to improve
Financial Performance
employee skills and commitment. The two
literatures have developed separately Evidence from research on top executives
without much attention to points of indicates that they have a moderate amount
convergence. How top executives influence of influence on the bottom-line financial
NHRD Apr09 - 1.p65 44 5/2/2009, 3:25 PM

performance of a company over a period of ways to external threats and opportunities.
several years (see Hambrick, 2007; Mackey, Adaptation is especially important when
2008; Yukl, 2009). However, limited the external environment is volatile and
progress has been made in explaining how uncertain, and for an organization that
top executives actually influence the emphasizes unique, leading-edge products
financial performance of a large or services designed to satisfy the changing
organization. The explanations provided in needs of customers and clients. Top
much of the leadership literature involve management can improve adaptation by
leader influence on employee confidence carefully monitoring the external
and commitment to an appealing vision for environment and tracking changes in
the future. For example, several survey customer preferences, economic
studies examined the relationship between conditions, competitor actions, and
CEO transformational or charismatic technological discoveries relevant to the
leadership and indicators of company firm’s processes, products, or services.
performance (e.g., Angle, Nagarajan, Adaptation is also improved when top
Sonnenfeld & Srinivasan, 2006; Waldman, management has a flexible strategy that
Javidan, & Varella, 2004). Several will facilitate rapid change, and there are
comparative case studies have examined the effective processes for acquisition,
influence of top executives on the dissemination, and application of relevant
competitive strategy and the processes used new knowledge (Yukl, 2008; Yukl &
to make strategic decisions (e.g., Finkelstein, Lepsinger, 2004).
2003; Tushman & O’Reilly, 1996). Other
HRM and Company Financial
leadership scholars have described how top
Performance
executives can influence organizational
processes and aspects of structure that The literature on human resources
improve efficiency and adaptation, which management is primarily concerned with
are two primary determinants of long-term the recruitment, selection, training,
prosperity for an organization (e.g., Ebben, compensation, and retention of employees.
& Johnson, 2005; Yukl, 2008; Yukl & Examples of widely used programs include
Lepsinger, 2004). A company is highly recruitment and selection, orientation and
efficient when essential operations are team building, mentoring and career
conducted in a way that minimizes costs counseling, training and development,
and avoids wasted effort and resources. talent management, succession planning,
Efficiency is especially important for the compensation and benefits, and employee
performance of a company when the empowerment. In much of the recent
competitive strategy is to offer its products literature on strategic human resources,
and services at a lower price than talented employees (sometimes referred to
competitors. Top management can improve as “human capital”) are viewed as a source
efficiency by redesigning work processes, of competitive advantage and a way to
applying new technology that is relevant for improve bottom line results (Hatch et al.,
improving work processes, finding ways to 2004; Hitt & Ireland, 2002). Several studies
reduce costs for materials, supplies, labor, found that companies with effective
and energy, and coordinating unit human resource management practices
activities to avoid unnecessary activities and programs have better financial
and wasted resources. performance (e.g., Becker & Huselid, 1998;
Bowen, & Ostroff, 2004; Huselid & Schuler,
The financial performance of a company 1997; Richard, & Johnson, 2001; Park,
also depends on responding in appropriate Mitsuhashi, Fey, & Bjorkman, 2003).
NHRD Apr09 - 1.p65 45 5/2/2009, 3:25 PM

An example of this type of research is the and financial performance (Yukl, 2008;
study by Singh (2003), which tested the Yukl & Lepsinger, 2004). Many studies
relationship between HRM practices and during the past half century have identified
firm performance in a sample of 84 Indian types of leadership behavior that can
firms selected across range of industries. enhance employee confidence,
Using data from the Business Today 500 cooperation, and effort. Examples include
database, Singh examined the impact of providing support and encouragement
HRM practices such as manpower when an employee is discouraged or upset
planning, recruitment, selection, by a difficult problem, providing
evaluation, compensation, employee instruction and coaching to an employee
training, and staffing on objective measures who needs it, providing recognition for
of firm performance such as return on important contributions and achievements
assets (ROA) and sales growth. After by an individual or team, empowering a
controlling for firm variation and industry competent employee or team to determine
effects, HRM practices were significantly the best way to do a task, and delegating
related to these measures. Singh concluded new responsibilities or more authority to a
that through the use of good HR practices, competent employee. How leaders can
it is possible to have a more competent and improve employee skills has received less
committed workforce, which in turn attention in the leadership literature, but
provides a source of sustainable examples of relevant behaviors include:
competitive advantage. providing clear explanations about job
responsibilities and work procedures to
Research on the impact of HRM programs
and practices on a firm’s financial new or inexperienced employees,
performance have made only limited providing coaching and feedback to an
progress in identifying explanations for the individual or team, encouraging
relationship. The programs are often very employees to attend relevant training
costly, and a company can have poor activities, facilitating attendance at training
financial performance despite elaborate programs, making developmental
HRM programs and employees who are assignments to learn new skills, and
highly skilled and motivated. HRM providing opportunities to use newly
programs and practices are unlikely to be learned skills.
effective unless they are consistent with Leaders can also improve the quality of
the firm’s competitive strategy. There also human resources by their influence on
is some evidence that HRM practices HRM programs and management systems
should be comprehensive and mutually (Yukl, 2008; Yukl & Lepsinger, 2004). This
compatible (Ichniowski & Shaw, 1999). The type of leader influence is sometimes called
role of leaders is seldom examined closely indirect leadership, because no direct
in the HRM literature, but it is obvious that interaction with followers is necessary to
leaders at all levels in an organization can influence their attitudes and behavior. Top
influence the quality of human resources. executives in an organization usually have
the authority to design or modify human
How Leaders Can Improve Human
resource management programs. It is their
Resources
responsibility to ensure that the HRM
Flexible leadership theory describes programs are cost effective, compatible
how leaders can enhance employee with each other, and consistent with
commitment and skills in ways that will the firm’s competitive strategy. Middle
eventually improve efficiency, adaptation, and lower-level managers can help to
NHRD Apr09 - 1.p65 46 5/2/2009, 3:25 PM

implement and support the HRM responsibility that can be outsourced or
programs, and they can help to evaluate minimized. It is essential for top executives
the programs and suggest improvements. to understand the potential benefits from
HRM programs and how these benefits can
Direct behaviors and changes in HRM be achieved. To improve consistency
programs are complementary forms of between HRM programs and the firm’s
leader influence. The direct behaviors can competitive strategy, the HR director
be used to facilitate the implementation of should be included as a full-fledged
new programs and their successful use. For member of the top-management team who
example, a new training program is more participates in the process of making
likely to be successful when managers strategic decisions for the firm.
encourage subordinates to attend the
program and provide opportunities to use Human capital is related to efficiency and
newly learned skills on the job. Human adaptation in complex ways, and a good
resource management programs can understanding of these interdependencies
enhance the effects of direct leadership is required to balance the tradeoffs and find
behaviors. For example, encouraging synergies (Yukl, 2008). It is important to
innovative thinking is more likely to avoid any adverse consequences that can
increase the development of new products nullify the potential benefits of HRM
and processes, when an organization has programs and practices. For example, it is
a well-designed program to facilitate and usually expensive to attract, develop, and
reward innovation. However, programs retain talented people, and improvements
and structures can also limit the use of in human capital will reduce overall
leadership behaviors or nullify their effects. efficiency unless the additional expenses
For example, it is difficult to empower are exceeded by greater benefits from
subordinates when there are elaborate enhanced performance. It is also important
rules and standard procedures. to ensure that HRM programs and
practices are implemented effectively
Human resource management programs (Gratton & Truss, 2003; Khilji & Wang,
and systems can also serve as substitutes 2006; Richard & Johnson, 2001). When a
for some types of direct behaviors, and they popular HRM program is poorly
provide a way to ensure that common implemented, the likely result is higher
activities are carried out in an efficient and costs without most of the desired benefits.
uniform way across subunits. For example, To assess the utility of human resource
training of generic skills that are relevant management programs and practices, top
for all employees is likely to be more management should find ways to measure
efficient and consistent if provided by their short-term and long-term costs and
expert trainers as part of a company benefits.
training program rather than by many
individual managers in the company. How HRM Can Improve Strategic
Leadership
Despite the evidence that HRM programs
can improve financial performance, many Up to this point, the focus of this article has
companies fail to achieve the potential been on the influence of leaders on HRM,
benefits (Bassi & McMurrer, 2007; Pfeffer, but reverse causality also occurs. The
2005). One reason is that some top importance of human resource
executives still regard human resources as management systems for improving the
a cost rather than an asset, and they view quality of leadership has not been clearly
HR functions as a low-level staff acknowledged in much of the leadership
NHRD Apr09 - 1.p65 47 5/2/2009, 3:25 PM

literature. Most leadership theories focus when an organization already has talented
on the skills and actions of individual people who are able to support a new
leaders without considering the strategy requiring different skills than the
organizational processes by which leaders current one, or when such employees can
are selected, trained, and developed. The be hired without excessive cost. A well-
quality of top executives who are promoted designed human resource system can track
from within the organization is highly employee capabilities that are relevant to
dependent on programs and practices the challenges facing the organization.
involving leadership development,
performance appraisal, succession Conclusions
planning, and executive selection. The
research on human resource management There is a growing recognition of the need
has identified effective practices for for better integration of the literatures on
developing and assessing leadership human resource management and strategic
competencies, but many organizations fail leadership. The importance of human
to apply this knowledge systematically to capital as a determinant of firm
improve strategic leadership by top performance is gaining recognition in the
executives (McCall, 1998). strategic leadership literature, and the need
for human resource programs that support
Another contribution of human resource a firm’s competitive strategy is gaining
management programs to strategic recognition in the human resource
leadership is to provide the information management literature. Human resource
needed by top management to assess the management and strategic leadership are
organization’s human capital. The need for related in many ways, and there is much
consistency between management potential for mutual enhancement. More
programs and the competitive strategy is research is needed to explore the complex
not only a matter of changing programs relationships and discover how to increase
when the strategy changes. An effective the joint contribution of leadership
competitive strategy depends in part on the processes and human resource
core capabilities of the organization, and management programs to a company’s
human capital is often one of them. The long-term financial performance.
diversity of potential strategies is increased
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NHRD Apr09 - 1.p65 50 5/2/2009, 3:25 PM
Creators par excellence of wealth for stakeholders, visionaries in their own right
with entrepreneurial flair, and role models all rolled into one are contributors to
this section. It has chief executives offering their deep insights on leadership, as
they perceive it. They are leaders, who at the helm of their organizations
endeavour to create lasting value and shared vision. The buck stops here!
Anu Aga (Thermax), Sandeep Bakhshi (ICICI Lombard), Jaspal Bindra (Standard
Chartered Bank) and B Santhanam (Saint Gobain) need no introduction, and
their articles reflect deep understanding of what it means to lead successfully.
Jim Collins (of the classic Built to Last fame) contributed an article he wrote on
the ten best CEOs, hugely relevant even today. Peter Capelli, Harbir Singh,
Jitendra V Singh, and Michael Useem (Wharton School) had joined hands with
NHRD to unravel the DNA of Indian business leadership, an abstract of which
is also featured in this issue.
NHRD Apr09 - 2.p65 51 5/2/2009, 3:25 PM

WHEN DOES A CEO BECOME A LEADER?
ANU AGA
Abstract
Is being a CEO not synonymous with being a leader? May be not. This article further explores
the ‘differentiating’ factors of leadership that a typical CEO may need to develop or nurture. It
is when a CEO’s sensitivity is fine-tuned to local and global issues, even though they may not
have an immediate and direct impact on his business, that he will grow in leadership
capabilities.
About the Author

Anu Aga is on the Board of Thermax Limited, the Rs. 3000-crore
leading Indian player in energy and environment management. She
retired as chairperson of the company in October 2004. She has been
very active in various national and local associations like
Confederation of Indian Industries (CII) and had served as the
Chairperson of CII’s western region. She has written extensively
and given talks on the subjects of corporate governance, corporate
social responsibility, role of women and education. Ever since her
retirement, Anu Aga spends most of her time towards social causes. Her area of interest
is education and is keenly involved in an organization called Akanksha, which
promotes education for the underprivileged children in Mumbai and Pune.
In the US, they conduct a weekend seminar at all. Even in the best of times, when
called Renaissance Weekend, where high business was booming and our growth
profile people from politics, arts, education, rates were galloping, what could be the
and industry are invited. Even Nobel Prize best that a successful CEO can say – that
winners, sometimes, participate in the he/she could add profit quarter after
seminar. Towards the end of the session, a quarter; that he/she was loved by
few participants are asked to give a speech shareholders? What will he/she say about
of no more than three minutes and have to how his/her own employees, his/her
imagine that as soon as they deliver the family and the society saw him/her and
talk, they would drop dead. what about the legacy he/she is leaving
behind?
Imagine a situation like that, and what
would a typical CEO say just three minutes One good outcome of this current financial
before he/she says goodbye to the world! meltdown is a reappraisal of everything
Looking at the context of today’s business that was once considered sacrosanct. When
– financial meltdowns brought about by the edifice of the modern financial system
greed and unethical behaviour, scams and is exposed to be hollow and moth eaten, it
frauds, an atmosphere of suspicion and is only natural the captains of that system
cynicism about business itself – it is are subjected to intense scrutiny. The one
doubtful if he/she would feel comfortable phrase that we hear often is ‘the failure of
NHRD Apr09 - 2.p65 52 5/2/2009, 3:25 PM

leadership’. It is true the term connotes a to lead others, become a real leader. While
wider universe, that of societal leadership life will keep on presenting hurdles and
itself. What the world experiences today is challenges, it is an important attribute of
a failure of collective leadership on all the leader to face the world with
fronts – politics, education, development equanimity. One needs to find one’s own
initiatives, humane technologies and of centre – a calm and still zone within. In our
course, sustainable business practices. Ever personal lives, all of us face situations when
since the end of the Cold War era with its we need to deal with loss and failure. We
polarized ideologies, when state-controlled need to use them as opportunities to tap
economies including ours opened up, strength from within.
business was seen in a new light and
people looked to captains of industry for Vipassana, a Buddhist meditation
creating wealth and for shouldering the discipline taught me that unless we tap the
responsibilities of development. Today, it personal power which is within each of us,
is that faith and trust that have crumbled we cannot lead from positional power – the
and unfortunately, much that has been power that comes from our office and title.
built in terms of goodwill and reputation With centeredness, we begin to appreciate
also has been dismantled. A world that the uniqueness of our own being and
discarded the failure of state-run, regulated through that process learn to respect the
economies is, today, questioning the basic individuality of every person. Once we
principles of capitalism itself. And rightly practice this, we don’t see people as faceless
so. Can we sanction or allow this blatant categories – employees, shareholders and
display of unchecked, unregulated so on. Getting tuned to our inner stillness
capitalism that has destroyed wealth, is not some esoteric exercise meant only for
ruined lives and brought misery and yogis or mystics. Eckart Tolle in his book
cynicism around the world? Just as there “Stillness Speaks” says, “When you lose
is a growing tide of popular resentment touch with inner stillness, you lose touch
about politicians, can we demand more with yourself. When you lose touch with
from our CEOs? Can they rebuild a yourself, you lose yourself in the world.”
humane capitalism that can help to
generate and share wealth, and eventually When you operate from your calm centre,
move towards interdependence and you are no longer burdened with the
harmony? Can our CEOs grow to be true responsibility of having to be a superman
leaders who can give those three-minute or a superwoman. You realize the power
speeches with a sense of fulfillment? of what you can achieve, but more
importantly, the limits of what is possible
It is now clear that being a CEO is not for a single individual. Then you see no
synonymous with being a leader. There are problems in asking for help. A leader has
many more aspects of leadership that a to know when the organization is out of
typical CEO may need to develop or its depth and needs help; and that she
nurture. First and foremost, there is the herself need not feel small or ashamed to
crucial issue of organizing one’s own life ask for help. This also means creating
around a core of calmness and abiding shared leadership. Most organizations
values, before one can lead others. From have been hierarchical with a strong central
my own experience, I have realized it is leader managing through a distinct chain
when she is able to lead her own life with of command. This worked in the past, but
a sense of wellbeing that a CEO can aspire today’s interdependent world of rapid
NHRD Apr09 - 2.p65 53 5/2/2009, 3:25 PM

changes and cultural diversity demands employees can think they are making and
that leaders allow situational leadership to selling products like boilers, chillers or
emerge. A CEO becomes a leader when he/ pollution equipment or they can look upon
she facilitates several leaders to emerge it as being in the energy and environment
from within the organization. field, which addresses the issues of global
warming. If they are connected to a larger
Such a clear-eyed and realistic approach
vision, they will be energized. And it is for
will see the importance of creating a
the leader-CEO to do this.
nurturing environment for others.
Attracting and retaining talent is a big Vibrancy and interdependence can be
challenge that companies face today. Apart enhanced if a leader consciously
from being paid well, the younger encourages diversity of gender, culture,
generation would expect that there is room region and religion. Formulating and
for them to make a difference. It is all about following an affirmative policy which
creating a stimulating and vibrant includes women and marginalized
environment where employees participate members of the society is not about doing
with enthusiasm and feel the glow of social work, and it has been proved that in
fulfillment when they know something a globalized environment, diversity adds
meaningful has been achieved at the end to better decision making (since it includes
of a working day. Can we business leaders different points of view) and enhances
create an ‘entrepreneurial’ culture that competitiveness.
gives employees this sense of fulfillment,
where without necessarily owning shares, I mentioned earlier how today’s CEOs are
they experience a strong sense of belonging often reduced to being mere number
and have a sense of purpose? crunchers. Living such a life, it is natural
that the cultures they create within
In our own case, Thermax grew because organizations also become unidimensional
there was ample opportunity for and narrow. Is an organization’s aim only
individuals to come up with an idea and financial success or is human wellbeing the
make it a success. Entrepreneurial culture real purpose of business? I am convinced
also means having tolerance for failures. that human wellbeing should be at the top
As expected, some of our initiatives failed. of our agenda. If that is the case, we will
During a critical phase, when the need to question many practices that we
company’s performance deteriorated, our have so far taken for granted. Does success
tolerance for mistakes went down but we at work carry along with it, a huge price
are once again re-creating our innovative tag whereby you end up in life as a failure,
and entrepreneurial spirit. Without incapable of meaningful relationships with
tolerance for genuine mistakes, a leader your loved ones? Can we business leaders
cannot lead a vibrant organization. take on the wider responsibility of helping
Most of you must be familiar with the story our employees achieve a greater sense of
about two masons who were asked what balance and wellbeing?
they were doing. One said he was laying
As a CEO, a person is responsible for the
bricks, while the other replied that he was
financial success of his organization.
helping build a cathedral.
However, as a leader, he/she is not only
Purpose stems from how you define work. responsible for the success of his
For example, in my own company, organization but he/she also needs to
NHRD Apr09 - 2.p65 54 5/2/2009, 3:25 PM

stand for a wider world – the community wellbeing and security of nations and
and the society at large. While the first future generations. Unless we step out of
responsibility as a corporate leader is to the paradigms of limitless growth based on
make his/her organization financially unchecked exploitation of hydrocarbon
strong and sustainable, that is not enough. fuels and curb our wasteful energy use
We have to reach out to the larger patterns, we would soon be crossing the
community from which we draw all our point of no return. Can we as world leaders
resources. Very often, corporates argue that contribute in our individual ways to reduce
they are doing their bit by creating job our energy intensities and reduce our
opportunities and paying taxes. I believe carbon footprints?
that as the corporate sector is an integral
When a CEO’s sensitivity is fine tuned to
part of any community, they have to be
local and global issues even though they
sensitive to its needs. There is a striking
may not have an immediate and direct
paragraph I read somewhere stating that
impact on our business, then she will grow
the business of business is to generate
in leadership capabilities. For this she will
growth and profits or else it will die;
have to come out of the culture of silence.
however, if that is the sole purpose of
In all societies, every day there are
business, then also it should die for it no
instances of social injustice and violations
longer has a reason to exist. This is very
of human dignity. It might not directly
applicable to a country like India where
concern a CEO, but as a leader how do you
poverty is a compelling reality and the gap
react to injustice, be it communal violence
between the rich and the poor is widening.
or atrocities towards the downtrodden that
It is imperative that the corporate sector
flare up from time to time in different parts
with its managerial resources, financial
of our country? It will be a test of leadership
muscle and technical competence reaches
for her whether she chooses to stay forever
out to the needy and make growth
in comfort zones and like an ostrich
inclusive. Apart from a sense of justice,
pretend that it is not our business to
business needs to do this in its own
intervene, or decide to take an active stand
enlightened self-interest. Corporate social
and be prepared to face the consequences.
responsibility is not just a fashionable thing
Just as we are tuned to listening to our
to do but needs serious commitment from
shareholders, every night before we sleep,
leaders.
should we not also take care of that small
We also need to be responsive and voice – of our own conscience? Amartya
responsible stewards of life on earth. We Sen warned us that “Silence is a big enemy
owe it to our future generation and cannot of social justice”.
selfishly deplete the limited resources that In these times of uncertainty and constant
this earth has to offer. Business leaders change, we need a constant set of values, a
have a direct role to play when it comes to strong ethical sense to anchor us. In
wider concerns such as global warming societies where corruption is rampant, the
and climate change, the extinction of leader through his/her personal example
species and cultures, the emergence of has to show the way. I cannot be
drug-resistant diseases. prescriptive about values but each leader
The disastrous consequences of the world’s will have to decide where to draw the line.
climate change offer just such an Life can be the most potent teacher,
opportunity to link business with the provided we heed the message it is trying
NHRD Apr09 - 2.p65 55 5/2/2009, 3:25 PM

to convey. I would like to share a profound Wisdom also means realizing the transitory
lesson I have learnt: To emerge as a leader nature of positions and the fact that
you have to invest in yourself. Reading or institutions will continue even as
attending programs or gathering individuals come and go. A leader plans
intellectual information can add to your her succession so that there are no hiccups
and there is smooth transition.
knowledge and skills but not to your
“Succession” seems such a logical, good
wisdom. I strongly believe skills can be
idea but it means coming to terms with the
hired but wisdom has to be a key attribute fact that you are dispensable. Leadership
of a leader. Wisdom is your unique and also means accepting and coming to terms
personal learnings from life as it unfolds. with the fact that our stay on this earth is
In a lighter vein, it has been said that for a short duration, our roles dispensable
intellect tells you that a tomato is a fruit; and however important we imagine we are,
wisdom tells you not to use it in fruit-salad. our impact is inconsequential.
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EFFECTIVE LEADERSHIP IS DRIVEN BY
STRONG VALUES
SANDEEP BAKHSHI
Abstract
Leaders are the catalysts through which strategy translates itself into the organization.
Therefore, the need for developing leadership potential is evidently undisputable.
Yet, leadership cannot be taught but can certainly be learnt. The article posits that the key to
leadership development lies in nurturing strong organizational values. The leaders must
consistently demonstrate these values and bear the responsibility of instilling these throughout
the organization.
About the Author

Sandeep Bakhshi is the Managing Director & CEO of ICICI
Lombard, a 74:26 joint venture of ICICI Bank and Fairfax Group
and one of the eight companies which started operations after the
sector opened up to private sector participants in the year 2001.
Bakhshi, an Engineer and an MBA by education, joined ICICI in
1986 in the project financing department and worked there till 2001
before joining ICICI Lombard in January 2002.
Effective leadership is always a significant take on the leadership mantle towards

element in the study of success. This achieving a particular result. From a
becomes even more relevant in areas such business perspective the objective would
as business, sports, politics and war which always be to develop leadership qualities
involve leading teams or leading a large across the width and depth of the
number of people. As a result, there are organization and to do so consistently over
many definitions of leadership depending a period of time.
on the context. Most definitions revolve
around describing the ‘role’ of a leader as The answer lies in the development and
one who defines a vision and aligns and nurturing of a shared set of core values.
motivates a group of people to achieve the Values exert a major influence on the
same. However, more significantly, it is behavior of an individual and serve as
also seen that the influence of a leader is broad guidelines in all situations. They cut
not always dependent on title or formal across hierarchies and functions and form
authority. There is clearly a behavioural common bonds that hold groups together
aspect in this insight into leadership and at an emotional level.
unlike management, leadership thus flows Strong values are seen to be inter-related
from the core of a personality - it cannot be with strong leadership and this is pertinent
taught although it may be learnt. in every context. Organizations that
Therefore the question that arises is how espouse a distinct set of relevant values and
one can empower people to spontaneously live by them are able to carve out a definite
NHRD Apr09 - 2.p65 57 5/2/2009, 3:26 PM

position for themselves in the market. customer loyalty as well as strong word
Brands that engage with their target of mouth.
audience through a consistent set of values
f. Transparency: Openness in all
that are built over time have a larger
communication is necessary to earn the
customer franchise than others. Individuals
trust of both internal and external
at all levels who stand for a clear set of
customers. Interactions underpinned by
positive values are respected by everyone.
transparency go a long way in building
It is essential that the foundation of an credibility in a business such as
organization’s DNA be built on a set of insurance where each transaction is
anchor values that are relevant in the bound by a legal contract.
context of the company’s business model
Leaders must consistently demonstrate the
and the industry it operates in. At ICICI
organization’s core values and they
Lombard we have defined a specific set of
shoulder the responsibility of instilling
core values in the context of our business.
these throughout the business. This comes
a. Positivity: In a world full of to the fore in various situations that are
uncertainties a positive approach will faced on a day-to-day basis that indeed put
lead to positive results and this reflects leadership to the test. Some of these
in our communication and behaviour situations are elaborated below to highlight
with customers. the impact of baseline values on the
leadership imperative.
b. Sensitivity: Stepping into the customer’s
shoes sensitizes us to their emotions and Recruitment: Proper recruitment of new
situational context. This enables a resources is the starting point of building
response that is appropriate for the the organization’s value system and is in
situation and helps build a superior line with the adage that well begun is half
customer experience. done. Employees who have been filtered
through the sieve of core values form the
c. Integrity: Integrity is about honesty,
bedrock of a values-driven organization.
sincerity and being of sound moral
Their ability to adapt to the company’s
principle. It is also about keeping
culture and beliefs is that much easier and
promises and fulfilling expectations
helps in finally building a team that works
where each function within the
well together. Humility and respect for the
organization comes together seamlessly
individual enables the team at ICICI
as an integrated whole to deliver a
Lombard to work collaboratively in a
consistent service proposition to
multi-functional environment towards a
customers.
common goal.
d. Humility: True leadership in the service
Building leadership depth and developing
industry requires the humility to keep
leaders: One determinant of a true leader is
one’s ego sublime and to serve others.
the ability to build bench strength and a
Leaders recognize that they are in
strong second level of leadership. This is
business because of customers and are
only possible when the individual is secure
agile thanks to competitors.
with his own value system and is able to
e. Responsiveness: We are in the business inculcate the same in a positive manner in
of distress management and our the team. This also requires constant
customers expect us to respond to their communication with a bias towards
needs. A quick response environment ongoing mentoring as well as coaching.
is a source of differentiation and creates Rewards, recognition and growth that are
NHRD Apr09 - 2.p65 58 5/2/2009, 3:26 PM

usually linked to performance must also a win-win for both parties. The right
be supported by a demonstrated alignment recruitment filters are important to ensure
to the core set of values. A high-performing that the service-led organization carries the
employee who is seen to constantly violate correct cultural context. In addition,
the core values would have a limited future experiential training helps to demonstrate
in the organization. and internalize the desired value-driven
behaviour.
Decision making: Decisions on key issues
that the businesses encounter are taken on Communication with external stakeholders:
the assessment of the choices vis-à-vis their The industry’s perception of an
alignment with core values. Hence both the organization is a reflection of the
intended and unintended consequences of perception of its people. The leadership
the decision are owned by the leadership team in its interaction with key partners,
team. This also ensures that there are no regulators as well as competition has the
significant post-decision debates and the opportunity to build a positive image of
entire organization is aligned towards the company and its business philosophy.
delivery rather than discussion. Here again the right selection of leadership
Moments of truth: A service-driven is crucial as individuals are often in
organization is faced with thousands of situations where they represent the
customer interactions on a daily basis organization and their behaviour and
across touch points. Each of these is a commitment are always under
moment of truth and could have an observation. Leaders who have been
electronic interface or a human interface. tempered and tested in the crucible of core
Experience suggests that situations values have the confidence of their
involving a human interface with a shareholders to act in the best interests of
customer have a higher chance of creating the organization. At ICICI Lombard, we
both a positive as well as a negative impact also encourage leadership development at
on the brand. Consistency in the customer various levels by allowing the person who
experience at these moments of truth builds is right for the occasion to represent us
a coherent and strong brand. The challenge rather than rely on hierarchical choice.
lies in ensuring the desired service delivery Corporate social responsibility: The purpose
on every occasion especially where human of business cannot be seen in isolation of
behaviour is involved. Furthermore, the its impact on the environment and people.
challenge is compounded exponentially as Sensitivity of the leadership towards their
an organization scales up. Training, control fellow humans reflects in socially directed
and monitoring help in building the efforts that do not necessarily have a
desired service delivery model and ensure tangible commercial pay off. Genuine
a base level customer experience. efforts which are not superficial would only
However, effective differentiation leading come out of a deeper value-driven initiative
to brand leadership can only be developed to give something back to society. This, in
through an emphasis on the core values turn, creates a longer term positive rub-off
and their guiding principles. Sensitivity on the corporate image.
and responsiveness to a customer need
requires a behavioural response that must The above perspectives bring some clarity
come from within. Integrity of promises to the interplay between values and
and transparency of communication build leadership and lend credence to the belief
the foundation of a longer term customer that the efficacy of the latter is anchored in
relationship that is mutually beneficial and the strength of the former and draws
NHRD Apr09 - 2.p65 59 5/2/2009, 3:26 PM

sustenance from it. We use values as It also becomes evident that individuals
guideposts in our decision making, in cannot be greater than the organization and
developing leadership depth, as well as in leaders who understand this and make it a
serving our internal and external part of the organizational DNA create
stakeholders. Companies which have businesses that are sustainable over the
values that are congruent with their longer term. The leadership baton then
customers’ needs are rewarded with passes smoothly between successive teams
loyalty and advocacy leading to higher who cumulatively take the organization on
market share and a recession-proof an unassailable leadership trajectory
franchise. within its ecosystem.
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LEADERSHIP IN CHANGING TIMES
JASPAL BINDRA
Abstract
Set in the context of the global economic meltdown, the article provides guidelines for
contemporary leaders to rise above the crises and create real value. It calls for a more proactive
approach on part of business leaders to look aside of the scarce resources and identity
opportunities for future growth. In current circumstances, companies need leaders who can
accept the challenge and position their organization to advantage by managing their internal
resources optimally.
About the Author

Jaspal Bindra is currently the CEO Asia of the Standard Chartered
Bank where he is responsible for developing strategy, driving
stronger regulatory and government relations, addressing
governance issues and monitoring performance. He also oversees
all the M&A activities in Asia, acts as a senior contact role for major
clients, regulators, governments and NGO relationships in Asia and
the UK. He also chairs the Diversity & Inclusion initiative group
wide. Jaspal Bindra is a member of the Visa Asia Pacific Senior
Advisory Council and a Board member of Vital Voices Global Partnership.
Companies and individuals are struggling winners in this equation. Companies need
to cope with the challenges presented by leaders who can see opportunity in crisis
the global economic crisis. These are and position their organizations to
unprecedented times and leaders at all advantage. They also need true people
levels, and across industries, are in many managers who can inspire and motivate
cases facing the most challenging market their people and bring them along for the
circumstances that they have seen in their ride. The ability of a leader to retain strong
careers. Leaders not only have the talent will surely be a differentiator as
responsibility of ensuring that their staff are companies try to transition into better
motivated and stay engaged and times.
productive during these uncertain times,
they also have to actively manage Acknowledging the Challenge and
expectations against a backdrop of scarce Leading from the Front
resources, limited rewards and bleak The first step in articulating strategy is to
prospects. Managing such a situation is not come to grips with the situation and
easy; it calls for leadership brimming with acknowledge the challenges. Leaders at all
stamina, self-confidence, maturity, and a levels in companies need to adequately and
long-term view. Those who can think accurately take stock of the circumstances
ahead strategically with a vision for the and analyze the impact of various factors
future, rather than those who are inward on all aspects of their business. It is
looking and tactical, will emerge as the tempting to dismiss the current market
NHRD Apr09 - 2.p65 61 5/2/2009, 3:26 PM

events as cyclical. Many take the stance that needs, and challenges that customers are
the economic problems are beyond one’s facing in their own industries. This better
control, and will gradually right positions companies to respond with
themselves of their own accord once the relevant services. It is important to keep
larger system re-balances. Successful an on going dialogue with clients, even if
leaders will instead read and master the transactions have currently slowed down.
situation by delving into the nuts and bolts It will ensure that companies get the first
details of their business; and they will call when the situation turns.
continue to inform themselves as new
information emerges. Leaders, who can roll Downturns actually provide opportunities
up their sleeves and get into micro details for a company to increase value delivered,
about how their business is being affected, through better operational efficiency.
will be best positioned to counter Sygneta, a company in Latin America that
impediments and gauge opportunities as manufactures fertilizers, agrochemicals
the situation improves. and pesticides, learned from a downturn
in agricultural markets a few years ago,
Identifying Business Risks that it can increase its value proposition to
The ability to identify these potential farmers (its customers) by offering them
business risks, both existing and emerging, yield guarantees. This created a win-win
is important. One of the top reasons cited situation for both sides - farmers were
for the financial crisis is inadequate risk willing to buy the products for a higher
management practices at banks, increased price without defaulting and Sygneta
complexity of financial instruments and started to see healthier profit margins.
market speculation. This allowed many
banks to increase their exposure Sharing the Vision and Empowering
disproportionately in a single line of People
business ignoring the underlying risks Leaders may have to make tough decisions
involved. Risk should be considered an about costs and people, but in doing so they
input for all business decision making and are in fact providing their teams a chance
not viewed as a mere regulatory activity. to learn and grow. Constrained resources
A dynamic risk mitigation strategy across often bring out the best innovations and
an organization is a must. Equally, give people at all levels a chance to be
corporate governance has never been more thoughtful and creative. Many leaders say
important – financial reporting, accounting that they and their teams learn more in
practices, disclosures and compensation challenging times, rather than when times
structures are under immense public and are good and the revenues flow in as a
governmental scrutiny. Leaders should matter of course. It is critical therefore, that
ensure their houses are in order internally staff are brought in to share the vision and
– all practices should be scrutinized, open are empowered to take ownership for
and transparent, helping avoid allegations performance and implementation. The best
or misunderstandings that could lead to laid plans often go awry because of poor
erosion of brand value. implementation. Whilst leaders set
direction from the top, it is important to
Understanding Customer Needs seek input to decision making at all levels.
Another critical input to building a It is usually staff on the line, those who are
successful strategy in tough times is staying on the job day-to-day, that come up with
close to customers. Leaders have to stay the most creative ideas to successfully
closely informed about changing customer improve a process.
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Investing in Creative and Longlasting and make decisions in a pinch. This second
Solutions bench will believe in their leader’s vision
In trying to increase operational efficiency for the company and be jointly accountable
and encouraging staff to do more with less, for performance. This accountability is
companies may find that investments in important; it provides a sense of ownership
infrastructure related areas like technology for the company and its people. Leaders
may reap benefits in the long run. It is should continually empower their top
important to avoid being myopic, and to people in this manner and gradually build
take a long-term view on such investments, ownership.
though it may seem a surprising time to be
These top leaders should be careful not to
spending more money. This is the kind of
let the current situation overwhelm them,
measured risk that leaders should be
or they will risk losing the confidence of
courageous about taking during tough
their staff. Employees today are well-
times. Historically, some of the most
informed and have access to numerous
creative and lasting solutions have
channels of information. They understand
emerged in the most challenging business
that in conditions like these, there is no
scenarios.
silver bullet solution or one right answer.
”Henry Ford cannot take credit for Rather than pretending to know it all or
inventing the automobile or the assembly potentially making false promises to staff,
line. He will, however, forever be honesty is the best way for leaders to be
remembered as the visionary who most reassuring. Leaders should
transformed the assembly line so that his demonstrate that they are on top of factors
Model T could be produced more within their control and that they are
inexpensively. In doing so, he changed the prepared and capable of responding to
automobile itself from a luxury to a shifting market dynamics. They should
necessity and changed the average man’s stick to the facts and be transparent – this
life for good.” will inspire confidence and give them
integrity as a leader. Keep in mind that
Similarly, in preparing GE for the future,
leaders are also competing with the media
Jack Welch implemented his famous Six
for staff attention. Now more than ever, the
Sigma effort in 200 projects in the company
media limelight is focused on company
in 1995 at an investment of USD 200
leadership, exposing leaders and their
million. The benefits were almost
internal frameworks to public analysis.
immediate; GE recorded USD 170 million
People watch leaders’ reactions, the words
in savings from this initiative.
that they use, their facial expressions, even
Building People Capabilities their body language, as the basis for
analysis to draw broad conclusions about
No one can accomplish all of this alone.
a company’s health.
A good leader will have a dedicated team
of lieutenants; capable professionals to help
Communicate, Communicate,
prepare, plan and execute. This group of
Communicate
lieutenants will not appear overnight –
leaders should plan for succession and In a stressful time like this, many leaders
groom their juniors as a constant priority. make the mistake of getting so caught up
In difficult times it is more important than in their business strategy and balance sheet
ever for leaders to know the strengths and that they do not have the time to
weaknesses of their people – to know communicate with their people. They
whom they can trust to get the job done, should put in a concerted effort towards
NHRD Apr09 - 2.p65 63 5/2/2009, 3:26 PM

sharing information and setting realistic forums, town halls, and lunch meetings.
expectations. It is important to motivate This is the best way a leader can win the
staff by displaying a positive attitude, support of his people if tough decisions
without appearing arrogant or over- have to be made, whether it is cutting costs
confident. Staff should trust that their or announcing redundancies. They will
leadership are thinking ahead and understand that these steps are necessary
planning for their collective future. Regular to define the future of the company.
and timely communication is extremely
So while leaders are coming to grips with
important and leaders should be very
the situation and setting strategy, it is
visible – in town hall meetings, roundtable
critical that they win public and staff
sessions and on the production floor. No
confidence by displaying a cool head and
amount of email communication can build
remaining guided by company principles
the trust that a face-to-face meeting can.
to tide the organization through
Senior leaders in a company can provide
uncertainty. Complacency and over
reassurance to younger staff by telling
arrogance based on past success can be
them about challenges they may have faced
lethal. Mature leaders will expect the
at some point in their own careers and their
market to keep changing and will be
survival strategy. They can tell them stories
prepared for the unexpected. They will be
about companies that have emerged
alert and have the flexibility to respond to
winners through a downturn and their
sudden changes which may call for a quick
tactics for staying ahead of the pack. In
revision of plans. This flexibility and
maintaining a confident and reassuring
adaptability to market dynamics is a critical
approach, leaders will win support and
differentiator for leaders today.
trust from staff. On the other hand if they
are tentative or dishonest in their It is very hard for anyone to predict when
communications, staff will lose faith in their the downturn will reverse its trend. While
leadership and in their commitment to the it is natural for companies to think about
company as a whole. The absolute worst survival during this time, the smart ones
thing that can happen during tough times should actually be planning for the
is for leaders to be seen as withholding turnaround phase and how to emerge a
information. If this happens, staff will start winner. They should put together a robust
to rely on the rumour mill as their primary strategy with contingency plans, a good
source of information and base their actions people management and talent retention
on what they are hearing in the corridors program and also be willing to take
or in the cafeteria. This can have disastrous calculated risks to strengthen their core
effects and spawn uncertainty and attrition business, while willing to trim non-core
amongst the best performing staff - simply and cost-intensive business practices. They
because they believe the grapevine in the should look at increasing their efficiencies
absence of direct communication with and increasing their value proposition to
leadership. their stakeholders. The landscape around
us will continue to change and we may
Leaders should be clear that the company never taste the old times again. But to
and the people come above all else. They survive and succeed, leaders have to be
should give praise where deserved. The resilient; they must restore confidence,
company’s agenda for the future, its prepare their organizations to adapt and
business goals, and the role staff should respond, and build a culture of
play in achieving these, are items that performance and accountability in their
should be reiterated consistently in all staff companies. Leading a company in tough
NHRD Apr09 - 2.p65 64 5/2/2009, 3:26 PM

times is not easy and it is even harder to culture framework of the company and
drive performance keeping in mind that win the respect and trust of the people by
challenging times call for stretched and being role models worthy of emulation.
demanding benchmarks. It is best to Now more than ever, leaders have to walk
therefore, always act within the value and the talk and lead by example.
References:
a. Forbes Greatest Business Stories of All Time - Daniel Gross and the editors of Forbes magazine
b. 50 Companies that Changed the World – Howard Rothman
Other internet references:

1. Leadership in the Era of Economic Uncertainty – Ram Charan
2. Tackling Tough Times – John Eales – Mettle Group
3. Winning in Turbulence – Bart Vogel – Bain and Company
4. Managing in the Downturn – Paul Thompson – Partner, Advisory – KPMG Australia
5. Leadership in Turbulent Times – Damien O’Brien – Egon Zehnder International
6. The McKinsey Quarterly - Leading through Uncertainty – December 2008 – Lowell Bryan and Diana Farrell
7. Strategy in a Structural Break – The McKinsey Quarterly – Richard P. Rumelt
8. Seven Lessons for Leading in Crisis – The Wall Street Journal, Feb 2009 – Bill George
9. Cracking the Code of Change – Harvard Business Review – Michael Beer and Nitin Nohria
10. Moving Upward in a Downturn – Harvard Business Review – Darrell Rigby
11. The Crisis: Mobilizing Boards for Change – The McKinsey Quarterly, Feb 2009 – Andrew Campbell and Stewart Sinclair
12. Leadership in Turbulent Times: The New Scorecard – Luis F. Valdes, Turknett Leadership Group
13. http://www.imd.ch/research/challenges/TC001-09.cfm
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THE DNA OF INDIAN BUSINESS LEADERSHIP
PETER CAPELLI, HARBIR SINGH, JITENDRA V SINGH and MICHAEL USEEM
Abstract
A detailed study covering over 100 CEO’s and heads of human resources was conducted by the
National HRD Network and the Wharton School, University of Pennsylvania to explore the
areas of Leadership, Governance and Employee Management in leading Indian firms.
The focus of the study was on identifying the distinctive features of Indian organizations that
set them apart from their U.S counterparts. This article summarizes the key findings of the
study and throws light upon the distinguishing features of India Inc.
About the Authors

Peter Capelli is George W. Taylor Professor of Management at The
Wharton School, University of Pennsylvania. He is also the present
Director of ‘Center for Human Resources’. His research interests
include, human resource practices, talent and performance
management and public policy related to employment among
others.
Harbir Singh is the The Mack Professor of Management at The

Wharton School, University of Pennsylvania. He is also the Vice
Dean for Global Initiatives and the Co-Director of Mack Center for
Technological Innovation. His research interests include strategies
for corporate acquisitions, corporate governance, joint ventures,
management buyouts and corporate restructuring.
Jitendra V Singh is the Saul P. Steinberg Professor of Management

at The Wharton School, University of Pennsylvania. He is also the
Vice Dean for International Academic Affairs. He holds a PhD from
Stanford University. His research interests include, business process
outsourcing, developing firm capabilities, organizational evolution
and organizational change, among others.
Michael Useem is the William and Jacalyn Egan Professor of

Management at The Wharton School, University of Pennsylvania.
He is also the Director of Center for Leadership and Change
Management. He holds a PhD from Harvard University. His
research interests include, leadership, decision making, governance,
corporate change and restructuring among others.
NHRD Apr09 - 2.p65 66 5/2/2009, 3:26 PM

On August 15, 2007, India celebrated the way in which they are operating that might
60th year of its independence from the account for this success? In particular, are
British. Both within and outside of India, they functioning differently than the
the interest in how India has been doing dominant models we see for managing
focuses on the Indian economy and Indian large enterprises in the West, and, if so,
companies in particular. The reason, of could those differences help us understand
course, is because the economy has been the success of these companies?
booming and is increasingly becoming a
These are obviously difficult questions and
model for countries elsewhere. GDP
attempting to assess all of them would be
growth until the recent global meltdown
almost an impossible task. Therefore, we
averaged an amazing 9 - 9.5 percent per
decided to focus on the aspects that have
year; foreign investment, both portfolio
the biggest effect on the enterprise as a
investment and FDI, were at an all time
whole. The most important of these aspects
record high; India’s foreign exchange
are associated with the CEOs and the ways
reserves, which in 1991 were down to just
in which they operate. Undoubtedly, the
over $1 billion, were until recently at $320
priorities of the CEOs and their decision-
billion; inflation was well under control,
making processes have an enormous
and a large swathe of Indian society has
influence on their enterprises. Therefore,
been lifted out of poverty.
the focus of the research was CEO’s
priorities as studying those reveal the most
Clearly, India’s economic success scores for
distinctive and most important aspects of
special interest, yet another reason that
operating Indian businesses. The goal of the
draws world attention is the ability of
study was to identify the distinctiveness of
Indian companies to deal with a workforce
the Indian model especially from the U.S.
of incredible diversity. At present, India
recognizes more than 18 languages, is As focus of the study, the areas of
divided among six major ethnic groups and leadership, corporate governance, and
scores of smaller ones. Getting this management of employees was chosen.
extraordinarily diverse population to work Regarding leadership, expectation was that
together is a challenge that dwarfs the there would be a great deal of
problems we see in the U.S. and most other heterogeneity among different types of
countries in the world. The Indian Indian firms – more Western style firms
economy and especially the large like Hindustan Unilever or ABB, or public
corporations that drive this diverse sector firms like ONGC or Hindustan
workforce, therefore, seem to represent Petroleum, or promoter-led companies like
something unusual that deserves great the Aditya Birla Group, Tata Group or the
consideration. Moreover, these are RPG Group, or firms like Infosys or Larsen
companies that came right out of economic & Toubro. In the corporate governance
liberalization (many getting started only domain, we were aware that this has
after the 1991 economic reforms) and become a topic of great interest to Indian
immediately became competitive with the firms. Once Clause 49- the Indian version
best companies in the West. This level of of the Sarbanes Oxley Act, came into effect
success raises some profound questions at the end of 2005, the regulatory context
that are important not just in India but in for corporate governance changed
the rest of the world as well. The most significantly. The human resources area
important of these questions is simply, had traditionally been a quiet backwater
what is it that Indian businesses are doing? on the Indian management landscape,
Is there something distinctive about the governed by extensive regulations and
NHRD Apr09 - 2.p65 67 5/2/2009, 3:26 PM

union management relations. In recent values and vision for the company at the
years, however, competition for human top of their operating framework, the
talent has increased dramatically. Rates of business leaders created guideposts that
voluntary turnover and retention helped carry them through both hardship
challenges have exploded. Also, and prosperity. The second set of responses
compensation packages have grown focused on the structure of the organization
sharply in a literal war for talent. For many and of the executive teams that run it.
companies attracting and retaining the best Many executives emphasized the
talent has become the top strategic priority importance of building their top team, as
and a shortage of trained and educated the most common response. The qualities
workers may now be the most significant of their direct reports were similar to what
constraint on the overall economy. they expected of themselves, including an
ability to think strategically, a commitment
As part of the study we interviewed over to the values of the firm, and a capacity to
100 chief executives, managing directors, grow and adapt as the companies
and other top executives of large, publicly expanded. Importantly, the CEOs did not
traded Indian companies. We were focus attention on their own individual or
especially interested in learning whether personal qualities as being the key
there were distinctive aspects to the way competencies for leadership. To get at this
these leaders operated their organizations. issue more explicitly, an additional
We also surveyed their heads of human question was asked, “In your experience, how
resources to identify additional details are Indian business leaders different from those
about the operation of their companies and from other countries, especially the U.S.?” The
used those findings to draw comparisons interviews reveal three major themes in the
with similar operations in the U.S. way Indian executives perceive themselves
and their peers as advantaged, relative to
The interviews with the senior executives
their counterparts in the U.S. and Europe;
reflected several leadership themes in the
Flexibility and resilience, family ownership, and
Indian context. All the top executives
entrepreneurship and risk taking.
interviewed were asked “What are the top
two leadership capacities that have been most
critical for the exercise of your leadership during One of the common themes that emerged
the past five years?” Although there was across the interviews was the belief that
considerable diversity in the responses, Indian business leaders have learned
three primary themes emerged from the through hard experience to look beyond
interviews with the executives: Vision and the endless obstacles. India had been
strategy, the ability to shape the structure or through the ‘license raj’ and liberalization,
architecture of the organization and personal therefore it was essential for business
qualities. leaders to constantly reinvent, and be
flexible and resilient in the face of an
Clearly, enterprise values and vision were uncertain environment. Besides flexibility,
deemed by the Indian business executives family ownership was cited as the second
as the sine qua non of their enterprise, the most common difference by the
starting platform upon which they respondents. Unlike in the U.S, family
constructed all else. Their values and stakes remain more important in many
vision, along with strategic thinking about companies, and this is seen by many
the company’s future, defined mindset, executives as an asset. Several of the CEOs
influenced decisions, and guided believe that Indian business leaders place
execution. By self-consciously placing their greater emphasis on their families where
NHRD Apr09 - 2.p65 68 5/2/2009, 3:26 PM

family involvement is significant as in revealed that Indian companies design and
succession planning, which is often an execute extensive diversity programs as a
intra-family affair. The extent of way to reach a broader labor market. They
entrepreneurial behavior was the third also have more sophisticated systems of
theme in the differences seen by the Indian workforce planning and of performance
executives. Many of the Indian executives management than one typically sees in the
stressed their willingness to take risks in U.S. Where U.S. companies focus their
building their companies. This entailed attention in human resources on cost
going into uncharted waters, testing reduction, Indian companies see their
unproven business models, and acting as employees more as capital investments that
entrepreneurs even if running a large firm. have to be supported and nurtured. As a
result, these companies manage their
The second focus area of the study was the
employees much more carefully than do
domain of Corporate Governance. India
their U.S. counterparts. The Indian
has undergone substantial changes in
executives, viewed employees much more
corporate governance over the past decade.
as assets whose contributions should be
With much greater amounts of FII money
maximized, rather than as financial
flowing into Indian stocks, there had been
liabilities, a drain on resources.
an increasing demand for transparency
and disclosure from Indian firms. In 2005,
The picture of Leadership and executive
clause 49 was introduced as guidelines for
priorities drawn from the study suggest
corporate governance in India. In the study,
that there are important elements of
the vast majority believed that Indian
distinctiveness in the Indian context. The
practices would converge with those used
Indian CEO’s greater focus on managing
elsewhere, especially in the US, to the
the inside of their businesses and the
extent that they saw Indian practices as
attention that they give to employee related
being distinctive, their main explanation
issues appear to be quite distinctive. In
was the greater importance of promoter
these areas, the Indian CEOs appear to be
control and even family ownership
following the ‘best practice’
amongst Indian companies. They saw the
recommendations from around the world,
role of independent directors as important
albeit recommendations that their CEO
for good governance and believed that
counterparts especially in the U.S do not
these directors had an especially important
follow. The relatively lower priority the
role to play in the strategy formation
Indian CEOs appear to give to financial
process. The CEOs valued professional
issues, including addressing the investor
experience, good reputation, and
community, is also distinctive compared to
independent thinking as key attributes for
the Anglo-US Models. Whether that
such directors. Yet, an important group of
priority will increase with the expansion
respondents felt that Indian firms will
of U.S-style investors is an open question.
develop a model of governance unique to
While governance appears to be
Indian conditions, including greater
converging with the U.S model, CEO
concern for the interests of stakeholders,
priorities and practices appear to be quite
such as employees and even the larger
distinctive in ways that may not converge.
society, beyond the traditional focus on the
The greater involvement that Indian CEOs
shareholder.
appear to have in the strategy formation
Lastly, in the area of managing employees process may at some point change as
Indian companies differed significantly their organizations become more
from their US counterparts. The study professionalized, although the
NHRD Apr09 - 2.p65 69 5/2/2009, 3:26 PM

entrepreneurial inclinations of the Indian factors, all of which contribute towards
CEOs may keep them involved in that success in India. How should HR deal with
process even when professional managers this innate ability in its employee?
are more common.
While features such as family ownership,
The factors that account for the a directive & hierarchical mindset and
distinctiveness of these Indian practices - emotion & intuition have been a part of the
whether they are based on cultural Indian way of working, what is the HR
differences, the different state of professional’s analysis of its relevance in
development of the Indian economy, or the future? What could be those elements
whether Indian CEOs have somehow been of these features that can enable
able to sustain practices that work better - organization’s growth in the global arena,
remains to be examined. and what are those elements that hinder
the process?
Implications for HR
The perspectives shared by the CEOs help How can HR frame its systems, policies
us understand how they have succeeded and practices to encourage innovation,
in the past and what might be necessary to such that the CEO’s expectations of
do so in the future. They also suggest which ‘changing the status quo’ and breaking the
aspects of leadership; governance and complacency mode’ are fulfilled?
human resource management are at the top
of the CEO’s agenda. Keeping this as the Fostering Workplace Diversity
background, HR professionals need to
As India continues to go global, workforce
achieve common themes in these agendas.
diversity is not just about managing
In the end, we leave leaders to consider the
differences, but about encouraging diverse
following challenges.
backgrounds and cultures. CEO’s are
Leadership spending less time on fostering workplace
To build a strong leadership capacity diversity.
requires both, being visionary and tactical HR’s responsibility here is two fold, to a)
ability to construct the architecture of the spearhead diversity in the organization at
organization. How can HR integrate these a strategic level and b) translate the impact
competencies into its leadership pipeline? of the workplace diversity to the bottom
CEOs emphasize the importance of line.
building their top team. What can HR do
to build this priority into the organizational Governance
and leadership philosophy of the With the greater amounts of FII money
enterprise? flowing into Indian stocks, there has been
“A critical leadership capacity means as increasing demand for transparency and
empowering talent to aggressively grow disclosure from Indian firms. Once clause
the company,” as one CEO put it. How can 49 came into affect in 2005, the regulatory
HR incorporate this level of empowerment context for corporate governance changed
into the organizational architecture? significantly. In this scenario, are HR
professionals proficient in the principles,
Entrepreneurship philosophy and translation of governance
The Indian context has encouraged an policies and practices in the organization?
entrepreneurial spirit, coupled with What is HR’s role in the area of
flexibility, resilience and several other governance?
NHRD Apr09 - 2.p65 70 5/2/2009, 3:26 PM

Governance practices in India focus on a Managing/Developing talent is globally
larger spectrum of stakeholders, such as seen as the CEO’s most critical challenge
the employees and local communities. In today. In India, this priority is further
some cases, it is seen from the perspective impacted by the widespread concern about
of national development. Keeping in mind the quality of candidates in the job market.
the intersection of national and As a commodity, what are some of the
organizational interests in the way interventions that HR can initiate now to
governance may be defined in India, what balance the talent supply-demand ratio of
are the competencies the HR community the Indian market?
needs to build for itself, to strengthen the
process? Legacies & Successors
CEO’s expectations of HR Indian leaders firmly believe that leaving
a legacy means inspiring and instilling
CEOs believe their number one priority is
change, at an employee level, an
to shape the culture, with able support and
organizational level, or at a national level.
expert guidance from HR. It is essential for
India’s century needs this kind of thinking
HR leaders to develop ways and means to
and execution. HR as the link between
measure culture change and
people and business is at the forefront of
indoctrination. How can the HR
shaping this common vision across
professional build his /her role as Strategy
corporate India. How can the HR
Architect and Operational Executor to
community drive this vision of change?
build and ingrain culture into the
organization?
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THE 10 GREATEST CEOs OF ALL TIME
JIM COLLINS
Abstract
In the backdrop of economic crises and failed governance mechanisms, the article lists down
characteristics of 10 greatest CEOs of all time who looked beyond short term gains to create
long term sustainable value. The author posits that, great CEOs are not the ones who see
themselves as members of an elite group but are the ones who feel a deep sense of connectedness
with their organization and who build values that thrive long after they have left the
organization.
About the Author

Jim Collins is a student and teacher of enduring great companies –
how they grow, how they attain superior performance, and how
good companies can become great companies. Having invested over
a decade of research into the topic, Jim has authored or co-authored
four books, including the classic BUILT TO LAST, a fixture on the
Business Week best seller list for more than six years, and has been
translated into 29 languages. His work has been featured in Fortune,
The Wall Street Journal, Business Week, Harvard Business Review,
and Fast Company. Driven by a relentless curiosity, Jim began his research and teaching
career on the faculty at Stanford Graduate School of Business, where he received the
Distinguished Teaching Award in 1992. In 1995, he founded a management laboratory
in Boulder, Colorado, where he now conducts research and teaches executives from
the corporate and social sectors.
It’s a familiar scene. An industry under fire. laying the foundations for future greatness,
A congressional committee demanding plowing profits into research and
answers. A corporate CEO called to testify. development. The committee’s response
now seems unimaginable: It erupted into
Yet the familiarities, in this case, end there.
a standing ovation.
When Boeing CEO Bill Allen appeared
before a House subcommittee—addressing That image, from 1956, kept popping to
charges that military aircraft makers had mind whenever someone asked me about
improperly inflated profits at the the business meltdowns of 2001 and 2002.
government’s expense—there was no What, went the questions, should be done
lawyer whispering in his ear. There were about governance? What should Congress
no notes before him. There was no hint that do? What should boards do? What, what,
he wasn’t personally responsible for what?
Boeing’s actions. And when he had
finished his quietly forthright explanation, I usually declined to comment, feeling I had
there was no question that Boeing—far little to say that had not already been said.
from gouging the government to pad But as the Allen image lingered, I came to
executives’ bonuses—had in fact been realize that I did have something to say.
NHRD Apr09 - 2.p65 72 5/2/2009, 3:26 PM

It’s just that my answer wasn’t a what market (or other financial metrics in the
answer. It was who. case of pre-IPO companies) during the
CEO’s tenure.
When the debates over governance
mechanisms and procedural reform are all So what, exactly, made these ten so great?
said and done, one question will still tower Strikingly, many of them never thought of
above all others: Who should we choose to themselves as CEO material. The second-
run our corporations? In the 1990s, it’s now greatest CEO on the list initially refused the
clear, boards increasingly gave the car keys job on the grounds that he wasn’t qualified.
to the wrong people. Like doctors bleeding No. 9 described herself as “scared stiff.”
patients to death in the 1600s, the boards No. 5 was once told flatly, “You will never
weren’t trying to do harm. They were be a leader.” Striking, too, is the sheer scale
simply using the wrong models. of their time frames. Surrounded by
pressures to manage for the quarter, they
Yet where, these days, are the right
managed for the quarter-century—or even
models? For good reason, we’ve become
three-quarters of a century. The No. 4 CEO
cynical about CEOs. There seem to be no
shaped a company that would average 15%
heroes left standing, no one to emulate or
earnings growth for an astonishing 75
believe in. There’s an increasingly gloomy
years.
sense that we should simply throw up our
hands and give up on corporate leadership. Yet if one thing defines these ten giants, it
was their deep sense of connectedness to
I disagree. Having spent years studying the organizations they ran. Unlike CEOs
what separates great companies from who see themselves principally as
mediocre ones, I can say unequivocally: members of an executive elite—an
There are role models to learn from—albeit increasingly mobile club whose members
not the ones you might expect. It’s what measure their pay and privileges against
inspired me to go back to my research and other CEOs’—this group’s ethos was a true
assemble my list of the ten greatest CEOs corporate ethos, in the original, non-
of all time. business sense of the word corporate:
“united or combined into one.” They
Who made the cut? Some names on the list
understood the central paradox of
will be familiar, while several you might
exceptional corporate leadership: On the
expect to see—names like Gates, Grove,
one hand, a company depends more on the
Welch, and Gerstner—weren’t eligible for
CEO than on any other individual. Only
a simple reason: Great CEOs build
the CEO can make the really big decisions.
organizations that thrive long after they’re
Yet a company equally depends on the
gone, making it impossible to judge their
CEO’s understanding that his or her role
performance until they’ve been out of office
still represents less than 10% of the total
at least ten years. That criterion—legacy—
puzzle. Much depended on them, but it
was one of four I used to winnow a
was never about them.
universe of more than 400 CEOs. I also
scored the top candidates on impact Inclusion on this list would surprise, if not
(presiding over innovations—whether horrify, more than a few of them. But if the
technical or managerial—that changed question is how to identify more of the
things outside the company’s walls), right leaders—and how a new generation
resilience (leading the company through a can learn to become the right leaders—
major transformation or crisis), and there is no better answer than these ten. In
financial performance, measured by an age of diminished standards, those they
cumulative stock returns relative to the set loom larger than ever.
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No. 10: David Packard Stanford University an amount
comparable to the present value of Jane and
Rejected the CEO club
Leland Stanford’s original endowment, he
His eulogy pamphlet identified the Hewlett- never allowed his name to appear on any
Packard co-founder as ‘Rancher, etc.’ of its buildings while he was alive. By
In 1949, 37-year-old David Packard defining himself as an HP man first and a
attended a meeting of business leaders. CEO second, Packard did more than
Fidgeting while they discussed how to demonstrate humility. He built a uniquely
squeeze more profit from their companies, dedicated culture that became a fierce
he was finally unable to contain himself. competitive weapon, delivering 40
“A company has a greater responsibility consecutive years of profitable growth.
than making money for its stockholders,”
While Packard’s values have since waned
he asserted. Eyes turned toward his
within HP, he did more to create the DNA
six-foot-five-inch frame. “We have a
of Silicon Valley than perhaps any other
responsibility to our employees to
CEO. Like the heritage left by the architects
recognize their dignity as human beings,”
of democracy in ancient Athens, the
Packard said, extolling his belief that those
spirit of his and Hewlett’s system lives
who help create wealth have a moral right
on, far beyond the walls of the institution
to share in that wealth.
they built.
To his elders, Packard’s ideas seemed
borderline socialist if not outright No. 9: Katharine Graham
dangerous. “I was surprised and shocked Wasn’t afraid of fear
that not a single person at that meeting
agreed with me,” Packard reflected later. The Nixon White House threatened her, but the
“It was quite evident they firmly believed chief of the Washington Post Co. didn’t flinch.
I was not one of them, and obviously not On Aug. 3, 1963, Katharine Graham heard
qualified to run an important enterprise.” the crack of a gunshot within her house.
That was just fine with David Packard. He She ran downstairs to discover that her
never wanted to be part of the CEO club; husband, Philip, lay dead by his own hand.
he belonged to the Hewlett-Packard club. On top of the shock and grief, Graham
In an era when bosses dwelt in mahogany- faced another burden. Her father had put
paneled sanctums, Packard took an open- the Washington Post Co. in her husband’s
door workspace among his engineers. hands with the idea that he’d pass it along
He practiced what would become famous to their children. What would become of it
as “management by walking around.” now? Graham laid the issue to rest
Most radical of all for the time, he shared immediately: The company would not be
equity and profits with all employees. sold, she informed the board. She would
assume stewardship.
What set Packard apart, in other words, is
that he wasn’t a person set apart. His idea “Steward,” however, would not describe
of a good time, according to a co-worker, Graham’s approach to her new role. At the
was to get together with friends and string time, the Washington Post was an
barbed wire. Despite being one of Silicon undistinguished regional paper; Graham
Valley’s first self-made billionaires, he aimed for people to speak of it in the same
continued to live in the small, understated breath as the New York Times. A crucial
house he and his wife had built in 1957. decision point came in 1971 when she
And though he donated (with Hewlett) to confronted what to do with the Pentagon
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Papers—a leaked Defense Department The early giants of industry tend to fall into
study that revealed government one of two camps: Individual innovators
deceptions about the Vietnam war. The (think Walt Disney) and system builders
Times had already incurred a court (think John D. Rockefeller). 3M’s William
injunction for publishing excerpts. If the McKnight falls into neither. Beginning in
Post published, it risked prosecution under 1929, the bookish accountant fused the two
the Espionage Act. That, in turn, could models into something entirely new: a
jeopardize the company’s pending public company that turned innovation into a
stock offering and lucrative television systematic, repeatable process. While you
licenses. “I would be risking the whole couldn’t predict exactly what McKnight’s
company on this decision,” Graham wrote system would create, you could predict
in her memoir, Personal History. Yet to opt with certainty that it would create.
for assured survival at the cost of the Many know the story of the 3M scientist
company’s soul, she concluded, would be who blasted a hole in his basement to house
worse than not surviving. The Post the machine that made his little sticky
published. tabs—a product that had failed market
Eventually vindicated by the Supreme tests—and how, like a drug dealer, he
Court, it was a remarkable decision for an created a base of addicted users by
accidental CEO who suffered from lifelong distributing free samples to headquarters
feelings of insecurity; phrases like “I was staff. It’s one of many 3M stories that
terrified” and “I was quaking in my boots” celebrate the lone spirit who persists
pepper her memoir. That anxiety would against all odds. The oft-overlooked lesson,
soon reach a crescendo as Post reporters though, is the “all odds” part. It’s precisely
Bob Woodward and Carl Bernstein because 3M entrepreneurs must battle
doggedly investigated what became attempts to kill off their ideas that a handful
known as Watergate. Today we take that of winners like Post-its emerge. Without
story’s outcome for granted. But at the time, this creative tension—freedom vs.
the Post was largely alone in pursuing it. discipline, innovation vs. control—all you
In choosing to publish, Graham built a have is chaos, or worse. Enron was a highly
great paper and, in turn, a great company— innovative culture that lacked discipline,
one that ranks among the 50 best- innovating itself right out of existence.
performing IPOs of the past quarter- “The test of a first-rate intelligence,” wrote
century and earned the investment of F. Scott Fitzgerald, “is the ability to hold
Warren Buffett. Graham never awarded two opposed ideas in the mind at the same
herself much credit, insisting that, with time and still retain the ability to function.”
Watergate, “I never felt there was much By that definition, McKnight was not just
choice.” But of course, she did choose. a first-rate intelligence, but a genius—a
Courage, it’s said, is not the absence of fear, genius whose company was lucky by
but the ability to act in its presence. By that design.
definition, Katharine Graham may be the
most courageous CEO on this list. No. 7: David Maxwell
Turned a turnaround into art
No 8: William McKnight
Fannie Mae was losing $1 million a day when
Disciplined creativity he arrived—’an opportunity to make [it] into a
He gave fledgling ideas freedom to grow great company.’
at 3M—but insisted they learn to stand on In 1981, as the stock of Chrysler hit an all-
their own. time low, America was beginning its
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enthrallment with the man hired to save executives into a room and thumped his
it. Lee Iacocca would soon be a national finger on a copy of the J&J credo. Penned
icon—bestselling author, star of more than 36 years earlier by R.W. Johnson Jr., it laid
80 commercials, and everyone’s image of out the “We hold these truths to be self-
a turnaround artist. evident” of the Johnson & Johnson Co.,
among them a higher duty to “mothers and
That same year, as the stock of Fannie Mae
all others who use our products.” Burke
hit an all-time low, a different executive
worried that executives had come to view
was hired to save the deeply troubled
the credo as an artifact—interesting, but
mortgage lender. David Maxwell would
hardly relevant to the day-to-day
not become a national icon—nor even a
challenges of American capitalism.
recognizable name. Yet by the time both
men retired in the early 1990s, Maxwell’s “I said, ‘Here’s the credo. If we’re not going
Fannie Mae had beat the stock market at a to live by it, let’s tear it off the wall,’ “ Burke
rate more than twice that attained by later told Joseph Badaracco and Richard
Chrysler under Iacocca. Ellsworth for their book Leadership and
the Quest for Integrity. “We either ought
More inspired than inspiring, more diligent
to commit to it or get rid of it.” The team
than dazzling, Maxwell took a burning
sat there a bit stunned, wondering if Burke
house and not only saved it but built it into
was serious. He was, and the room erupted
a cathedral. Some steps, such as selling off
into a debate that ended with a
$10 billion in unprofitable mortgages, were
recommitment. Burke and his colleagues
classic fireman stuff. But his deepest genius
would conduct similar meetings around
was to frame the rebuilding around a
the world, restoring the credo as a living
mission: strengthening America’s social
document.
fabric by democratizing home ownership.
If Fannie Mae did its job well, people No one could have predicted the act of
traditionally excluded from owning terrorism perpetrated on J&J customers in
homes—minorities, immigrants, single- 1982. But J&J’s response was predictable.
parent families—could more easily claim It didn’t need to debate whether customer
their part of the American dream. If safety outweighed short-term financial
turnaround is an art, Maxwell was its concerns, because the debating was already
Michelangelo. done. Burke makes the list not because he
led J&J through crisis; he makes it because
No. 6: James Burke he led in the absence of it.
Acted before crisis hit
No. 5: Darwin Smith
The former Johnson & Johnson boss is a legend Asked questions and moved rocks
revered—for the wrong reason.
The Kimberly-Clark chief was told ‘You’ll never
Ask people to single out a courageous CEO be a leader’ by the Army’s officer-training
action, and many will cite James Burke’s school.
decision to pull Tylenol capsules off the
shelves in response to the cyanide- Lois Smith could tell a big decision was
poisoning crisis of 1982, taking a $100 afoot at Kimberly-Clark whenever she
million hit to earnings along the way. It’s a heard the rumbling of a backhoe in the
wonderful story. But it misses the point. middle of the night. That was Darwin
again, moving rocks from one pile to
Burke’s real defining moment occurred another. This was how her husband mulled
three years before, when he pulled 20 key over big decisions—and to judge by the
NHRD Apr09 - 2.p65 76 5/2/2009, 3:26 PM

huge piles still standing sentinel at the world’s No. 1 paper-based consumer-
Gotrocks Farm in Wisconsin, Smith was a products company—its stock
champion muller. outperforming the market by a factor of
four over that span—and owned its main
When he became CEO of Kimberly-Clark
rival, Scott Paper, outright. Smith moved
in 1971, Smith faced a brutal fact: The
rocks and, in the end, moved a rock that
company languished in mediocrity, the
nobody thought could be moved.
bulk of its capital tied up in giant paper
mills. Yet Smith offered no vision No. 4: George Merck
statement, no splashy acquisition, no
hoopla-laden change program. Instead he Put profit second
posed questions. What, he pressed his The Merck & Co. boss didn’t worry about Wall
colleagues, could Kimberly-Clark be Street—and grew profits 50-fold.
passionate about? What could it be best at
in the world? What could improve its Late one afternoon in 1978, Dr. William
economics? For months he continued to ask Campbell did what all great researchers do:
questions and move rocks. He wondered at the data. While testing a
new compound to battle parasites in
This was not Smith being indecisive.
animals, he was struck with the idea that it
Diagnosed with nose and throat cancer
might be effective against another
shortly after becoming CEO, he told Lois
parasite—one that causes blindness and
what he’d learned from his illness. “If you
itching in humans so horrific that some
have a cancer in your arm, you’ve got to
victims have committed suicide. Campbell
have the guts to cut off your arm.” He
might have simply scribbled a note in the
paused. “I’ve made a decision,” he
files and gone to lunch. After all, the
continued. “We’re going to sell the mills.”
potential “customers”—tribal people in
The decision had grown out of one of remote tropical locations—would have no
Smith’s dialogues in which a fellow money to buy it. Undaunted, Campbell
executive noted that Kleenex, a sideline penned a memo to his employer, Merck &
product, had become a brand synonymous Co., urging pursuit of the idea. Today 30
with its category, like Coke or Band-Aid. million people a year receive Mectizan, the
In what a Kimberly-Clark director called drug inspired by his observation, largely
the “gutsiest decision I’ve ever seen a CEO free of charge.
make,” Smith jettisoned 100 years of
corporate history, right down to the The most exceptional part of the story is
original mill in Kimberly, Wis. Analysts that it wasn’t an exception. “Medicine is
derided the loss of revenue. The stock took for people, not for the profits,” George
a hit. Forbes predicted disaster. But Smith’s Merck II declared on the cover of Time in
ruminations had equipped him with quiet August 1952—a rule his company
steel. observed in dispensing streptomycin to
Japanese children following World War II.
A CEO must be willing to act boldly, yet Yet fuzzy-headed moralistic fervor wasn’t
boldness is worthless if you’re wrong. It’s George Merck. Austere and patrician, he
an obvious point, but one routinely ignored simply believed that the purpose of a
by those caught up in the fanfare of big corporation is to do something useful, and
action. Smith grasped that it is better to be to do it very well. “And if we have
right than to be impressive. remembered that, the profits have never
And Smith got it right. Twenty-five years failed to appear,” he explained. “The better
after becoming CEO, Kimberly-Clark was we remembered, the larger they have
NHRD Apr09 - 2.p65 77 5/2/2009, 3:26 PM

been.” It’s the mirror image of CEOs whose central message: to make better things ever
unhealthy fixations with Wall Street have more affordable to people of lesser means.
served neither people nor profits: Merck And before his death in 1992, he made two
served shareholders so well precisely brilliant moves to ensure that idea would
because he served others first. outlast him. First, he set a goal that he knew
would be unachievable in his lifetime: to
No. 3: Sam Walton grow annual sales from less than $30 billion
Overcame his charisma to $125 billion by the year 2000. Second, so
that no personality would become bigger
‘I have the personality of a promoter,’ the Wal- than the idea, he picked a successor who
Mart founder wrote, but ‘the soul of an had seemingly undergone a charisma
operator.’ bypass. Under David Glass, Wal-Mart blew
A Brazilian businessman once told me how right past the $125 billion goal, clocking in
he’d sent letters to the heads of ten U.S. at $165 billion in 2000.
retailers in the1980s, asking to visit to see
Walton knew better than anyone the
how they ran a retail operation. Most didn’t
dangers of charismatic leadership. He
bother to reply, and those who did sent a
proved that, like any other handicap, it can
polite “No, thank you.” All except Sam
be overcome.
Walton.
When the Brazilian and his colleagues No. 2: Bill Allen
stepped off the plane in Bentonville, Ark., Thought bigger
a white-haired man asked if he could help.
“We’re looking for Sam Walton,” they said, ‘Don’t talk too much,’ Boeing’s new chief
to which the man replied, “That’s me.” admonished himself. ‘Let others talk.’
Walton led them to his truck and Its planes helped win the war—yet victory
introduced his dog, Roy. As they rumbled in 1945 looked like death for Boeing.
around in the front cab of Walton’s pickup, Revenues plummeted more than 90% as
the Brazilian billionaires were pummeled orders for bombers vanished overnight.
with questions. Eventually it dawned on And bombers, everyone knew, were what
them: Walton had invited them to Boeing was all about.
Bentonville so that he could learn about
South America. Later Walton visited his Everyone, that is, but its new leader. An
friends in Sao Paulo. Late one afternoon understated lawyer who said he wasn’t
there was a phone call from the police. qualified for the job, Bill Allen never saw
Walton had been crawling around in stores Boeing as the bomber company. It was the
on his hands and knees measuring aisle company whose engineers built amazing
widths and had been arrested. flying machines. In 1952 he bet heavily on
a new commercial jet, the 707. At the time,
The story encapsulates some of Walton’s Boeing had no business being in the
greatest strengths, notably his hunger for commercial market, or at least that’s what
learning. But it also points to his biggest potential customers said. (“You make great
liability: his singularly charismatic bombers up there in Seattle. Why don’t you
personality. Companies built around a cult stick with that?”) Yet Allen’s time frames
of personality seldom last. After Sam, were bigger too. He saw that Boeing could
would Wal-Mart decline like a church that compete by changing the industry. Under
loses its inspirational pastor? his leadership, Boeing built the 707, 727,
Yet Walton himself refused to let his 737, and 747—four of the most successful
colorful personality distract from his bets in industrial history. At a board
NHRD Apr09 - 2.p65 78 5/2/2009, 3:26 PM

meeting described by Robert Serling in was essentially a genius with a thousand
Legend & Legacy, a director said that if the helpers, Coffin created a system of genius
747 was too big for the market to swallow, that did not depend on him. Like the
Boeing could back out. “Back out?”, founders of the U.S., he created the
stiffened Allen. “If the Boeing Aircraft Co. ideology and mechanisms that made his
says we will build this airplane, we will institution one of the world’s most
build it even if it takes the resources of the enduring and widely emulated.
entire company.” Like today’s CEOs, he
endured the swarming gnats who think Edison’s wouldn’t be the only name to
small: short time frames, pennies per share, overshadow his. Coffin’s era (1892-1912)
a narrow purpose. Allen thought bigger— became known as the “Steinmetz era,” in
and left a legacy to match. homage to the brilliant GE electrical
engineer Charles P. Steinmetz. What little
No. 1: Charles Coffin name recognition Coffin did enjoy would
Built the stage on which they all played then be obliterated by the likes of Swope,
Cordiner, Jones, and Welch—GE CEOs
General Electric’s first president didn’t see who became giants in their own day.
himself as a genius; he came from the shoe
business. Jack Welch’s stature, in particular, reached
a point where GE was called the House
Most people have never heard of Charles
That Jack Built. In fact, Welch was as much
Coffin—and that’s the ultimate testimony
a product of GE as vice-versa. Certainly
to his greatness. His predecessor had
Welch vastly improved the system, and
something to do with this. No CEO finds it
history will likely judge him a great
easy to take over from a founding
executive. He was a master at developing
entrepreneur; now imagine that founder
general managers and steadily increasing
holds patents on the electric light, the
profit per unit of executive talent.
phonograph, the motion picture, the
But Welch did not invent this concept;
alkaline battery, and the dissemination of
he inherited it.
electricity. But Coffin knew his job was not
to be the next Thomas Edison—though
The same cannot be said of Charles Coffin.
Coffin, too, would prove a master inventor.
More than any other leader, Coffin made
His invention was the General Electric Co.
GE into a great company, creating the
Coffin oversaw two social innovations of machine that created a succession of giants.
huge significance: America’s first research For that reason, he stands a notch above
laboratory and the idea of systematic the CEOs whose names eclipsed his.
management development. While Edison He built the stage on which they all played.
“Copyright © 2003 by Jim Collins. Jim Collins operates a management-research laboratory

in Boulder, Colorado. He is the author of Good to Great: Why Some Companies Make the
Leap… And Others Don’t and co-author of Built to Last: Successful Habits of Visionary
Companies. More information about Jim Collins and his work can be found at
www.jimcollins.com.”
NHRD Apr09 - 2.p65 79 5/2/2009, 3:26 PM

I10 : FRAMEWORK FOR LEADERSHIP
B. SANTHANAM
Abstract
Leadership behavior is one of the most researched and talked about phenomenon of the modern
business environment. Drawn from success stories of real life, this article defines key traits of
leadership with contemporary illustrative examples. These traits, if inculcated by present
leaders will lead to increased leadership effectiveness which forms the bedrock for success
in an organization.
About the Author

Santhanam obtained his B.Tech from Indian Institute of Technology,
Madras and Post Graduation in Management from Indian Institute
of Management, Ahmedabad, with focus on Operations, Systems
and General Management. Santhanam, as the President – Flat Glass,
South Asia and founder Managing Director of Saint-Gobain Glass
India, enabled the company to achieve, in a short time, quality,
technical and market leadership position. Santhanam is a Member
of the National Council since 2006 and Southern Regional Council
of Confederation of Indian Industry (CII). Santhanam is also the Chairman of the
“CII’s National Committee on Skills, Human Resources and Industrial Relations” and
Chairman, “Task Force on Human Resources, Skills, Employability, Affirmative Action
and ITI- IMC” of CII Southern Region.
The framework I propose constitutes ten i nformation

interrelated traits that I believe significantly
contribute to effective leadership. My
experiential learning over the years leads i ntelligence
me to believe that these 10i’s may be the i ntegrity i magination
defining dimensions of Leadership, which i ndependence
i10
of Leadership i ns ight
if inculcated will provide potential leaders
a framework for demonstrating leadership
characteristics that form the bedrock of any i nfluence i ntens ity
organization’s success.
i mpact i ns piration
i1 - Intelligence
included intelligence as a key characteristic
First and foremost differentiator of the
of leadership.
leader from other persons is Intelligence.
The early 1900’s saw the emergence of trait More often, the society analyses people on
theories of leadership. These theories took Analytical intelligence but real leadership
the view that there are a set of traits that demands more than just that. Analytical
create a distinction of leaders from non- intelligence is a prerequisite for an effective
leaders. Studies around the trait theories leader. Most of the current research point
NHRD Apr09 - 2.p65 80 5/2/2009, 3:26 PM

Intelligence fast becoming a true source of competitive
advantage for effective leadership.
Information
10
i of
Leadership
10
i of
Leadership
out to the need for a threshold level of

An example of the power of information is
analytical ability to understand the social,
evident through the example of Google.
scientific, human phenomena in order to
It had a humble beginning that took root
make meaningful connections and
in a Stanford University dorm room and
conclusions.
quickly spread to information seekers
But other forms of Intelligence, viz., around the globe. Larry Page and Sergey
Emotional and Social Intelligence are even Brin chose to develop a search engine that
more crucial for a successful Leader. An would organize information on the web
emotionally intelligent leader is aware of and the power of information has guided
herself and empathizes with others. A Google to a leadership position. Truly, it
socially intelligent leader leverages lives by its vision - ‘to organize the world’s
networking with others, collaborates, information and make it universally
persuades and influences people over accessible and useful.’
whom he has limited authority. Another example of the power of
Leadership demands ability to select the information is Wikipedia, which is a
right approach, bring alignment and multilingual, web-based, free-content
achieve desired goals through superior encyclopedia. Wikipedia has become one
execution by constantly leveraging the of the most visited sites and is instrumental
leaders’ Analytical, Emotional and Social in knowledge transfer across the world.
intelligence. Rarely you will find a top Excellent leaders always seek high quality
leader excel in only one form of information, possess domain expertise and
intelligence. Eminent leaders have always knowledge in key areas and constantly
developed a holistic intelligence that keep themselves updated. Their keen
combines all the three dimensions. Analytical ability helps them to connect
We can find no better person than Barrack and convert the data into information and
Obama, who perhaps excels in all knowledge.
dimensions. Obama displays deep They possess ability to provide relevant
understanding of social, economic, political information at the right time and at the
issues and has the uncanny ability to align right place.
and collaborate with other world leaders
for larger cause. i3 – Insight
In today’s era of information accessibility
i2 – Information to everyone, the differentiating factor of
‘Information is power’ is an old adage, but effective leadership is the ability to create
one that holds true in leadership situations. insights from data and information.
Information is easily accessible in today’s Insight, when capitalized upon, leads to
era. However, the ability to generate innovation and further contributes to the
knowledge, develop frameworks and draw organization’s competitive advantage and
linkages through the use of information is leadership position. Understanding
NHRD Apr09 - 2.p65 81 5/2/2009, 3:26 PM

consumer psychology by studying the value in an industry that was reserved for
market, customer behavior and industry the elite.
trends are useful sources of generating
Top leaders constantly discern market,
insight. There are many companies which
social, industry and consumer trends way
bank upon these insights to develop
ahead of others.
innovations in products, business
processes, distribution channels, value i4 - Imagination
chains, people management and even in
Effective leadership involves working with
the functions of management.
imagination and being unconstrained by
resources. Leaders with imagination have
their eyes not only on the task at hand, but
also focus on the horizon. They have the
Insight
10
i of ability to build scenarios, see the bigger
Leadership
picture, think strategically and come up
with out of the box solutions.
An example of one such company is

Imagination
CavinKare which launched its key product, 10
i of
“Chik Shampoo” in innovative sachet Leadership
packing at a strategic price of Re.1 and 50p.
After 3 decades, that insight has now
become a main stream idea. In a highly
competitive FMCG category that seemed C.K. Prahalad used his imagination to draft
impenetrable to most marketers, Chik ‘India@75’. It is one of the most
Shampoo identified a humongous comprehensive and popular ideas in India
opportunity in rural and semi urban India today. It seeks to create a movement where
and created waves with its entry into these everyone can get involved into realizing
markets. the dreams of our country. A.P.J. Abdul
Kalam is another leader who used his
During the early 70’s long before it was
imagination to draft ‘India 2020: A Vision
fashionable to talk about Information
for the New Millennium’; which offers a
Technology and Outsourcing, F C Kohli,
vision of how India can emerge to be
the doyen of IT Industry, was insightful
among the world’s first four economic
enough to see IT services as an industry.
powers by 2020. Such leaders possess the
This was really an outcome of the ability to look into the future and create
consumer Insight that C K Ranganathan, scenarios which act as an inspiration for
the Founder had. others to follow.
Computer programming at that time was To be able to build effective leadership
seen as an intellectual and analytical vision and garner support on the
endeavour largely limited to analytically initiatives, imagination is a crucial tool.
smart people. FC Kohli’s insight led to the
birth of modern IT industry with i5 - Intensity
structured programming, Quality Ram Charan in his book, ‘Leadership in the
Management System (QMS) and large scale Era of Economic Uncertainty’, reiterates the
rapid training of averagely intelligent need for intensity as a leadership trait. I
people into the rigors of programming. His believe leadership is about intensity as
insight enabled an average person to add demonstrated in passion, drive and
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involvement in the task ahead. Without motivate people to achieve more than they
this intensity of thought and action, may have ever dreamt as possible.
leadership will have little influence. This Inspiration is the spark for motivation that
intensity translates itself into rapid force leads to action. Leaders motivate others for
with which organizations adapt to changes a common purpose and inspire others to
in the business scenario. do things normally beyond their realm.
10
i of
Leadership 10
i of
Leadership
Intensity
Inspiration
In 1996, Hyundai, then an aspirant in the
Global Auto industry, decided to enter
The best example to demonstrate
India. Most industry analysts were more
inspiration as a trait of effective leadership
enamoured by other auto majors.
is Mahatma Gandhi, who without any
However, the intensity with which top military aid, economic force, violence or
Korean Leaders, who were deputed to devious politics got the British to leave the
India, pursued their audacious goals and country. Gandhiji‘s non violent ways and
ensured that they captured the heart of peaceful methods were the foundation for
India, made all the difference. The Korean gaining independence from the British.
leaders went about understanding the Through his own moral values and belief
Indian consumers’ mind, designed a World in ‘Satyagraha’ he was able to create a
Class Car, developed an ancillary base, common vision amongst different castes
recruited top talent and invested in a state- and communities of India. He inspired the
of-art facility. The result is that their common man to rise above his abilities and
Chennai complex, in just a decade, reached contribute to nation building. By his
an annual production of over 500,000 cars. pursuit of truth and non violence, he
became a role model for the masses and
The result is, today they are 10 times bigger
led the nation to freedom.
in India than the US auto majors. What
differentiated the two teams was the Therefore, inspiration is imperative for
passion and intensity of the top leaders. good leadership. Through inspiration,
leadership enables others to emotionally
Therefore, intensity as exhibited in the
commit and identify with the goals, leading
speed with which companies respond to
to success.
changing business needs is extremely
critical for growth. i7 – Influence
i6 - Inspiration Influence is a key component of
Leadership. Being able to persuade others,
Leadership does not operate in isolation
build consensus amongst the contending
but in continuous interaction with others.
parties, create a cohesive team and
Leadership derives its very meaning from
collaborate effectively are keys to
its association with the ‘other’ – the
influential leadership.
followers. By becoming an inspiration for
others, leaders create a shared vision, get An example of influence is illustrative in
others to commit to the common goal and the case of Dewang Mehta, ex chief of
NHRD Apr09 - 2.p65 83 5/2/2009, 3:26 PM

Although Obama always stays cool, his
speeches energize the audience and stir the
10
i of mind. Having heard Obama first as a
Leadership candidate and now as the President, people
around the globe have put their faith and
Influence
hope in him. His powerful communication
NASSCOM. He played an important role style creates maximum impact on people
in lobbying with the Government on behalf across the globe.
of the fledgling Indian software industry.
Mehta’s knowledge of the correct people
to lobby and his collaborative stance with
IT-related departments enabled him to gain 10
i of
concessions, while other industries Leadership
struggled. Recognizing the potential of the

software and services segment as a major Impact
foreign exchange earner, Mehta launched
the India Inc. crusade, where he personally
presented the country’s software industry Therefore, leadership is not just about an
to the world. Besides a dream for the inherent value or substance but also about
software industry, Mehta had a blueprint outward style which makes it attractive
for the IT industry and how it could be used and impactful to the masses.
effectively to change the lives of India’s Communication becomes as important as
teeming millions. His vision was achieved any other trait of leadership, as it connects
through his influence and this is reflective people and creates impact.
in the fact that India is one of the leading i9 - Integrity
providers of IT services in the world.
There is a common theme among research
Leadership talent is closely related with the papers written about leadership in recent
ability to influence, not just the consenting times - Leadership and its relationship with
parties but also the dissenting parties. To integrity. Effective leaders serve as role
develop leadership skills, it is imperative models who are looked upon to set
to develop the ability to persuade others examples and lead. Integrity is that factor
and collaborate effectively. which makes leaders trusted, helps them
build credibility and create an impact on
i8 - Impact
the masses.
To a great extent, leadership is about
impacting others and getting them
involved in the task ahead. Since leadership Integrity 10
i of
is based on interaction with others, it is Leadership
important to build connect. In this,
communication plays a vital role. Clarity
of thought and the ability to communicate
The Tata Group has been in existence for
effectively is pivotal in developing
over 100 years and has always focused on
leadership competence.
integrity as an important value for the
Barack Obama, the President of United organization. The Tata Group not only has
States, is someone who has risen from a code of ethics, but a Code of Conduct,
wilderness in just over two years and today which specifically addresses behavioral
has become a person to reckon with. expectations from employees- right from
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the CEO to the staff level employees. The towards excellence is exhibited in the turn-
Tata group has ensured consistency of around speed of projects – he rebuilt the
exhibiting moral values & integrity across Pamban Bridge after it was washed off in
its illustrious life span and in all its dealings a short period of less than 60 days, when
with numerous stakeholders. the mandate given to him was six months.
In 1956, Lal Bahadur Sastry, the then Varghese Kurien, father of the white
Minister for Railways, set an example of revolution, driven by the challenge left his
constitutional propriety by submitting his government job and set up Amul. He gave
resignation as Minister, by owning up autonomy to the farmers and under
moral responsibility for the two rail Kurien’s leadership, India became the
accidents. largest producer of milk in the world. What
differentiates both these leaders is the edge
Effective leadership flows from the display
of ‘independence’ - of themselves and their
of the highest standards of integrity in all
followers. Thus, Effective Leadership is
types of situations – normal and high stress.
preceded by a relentless pursuit towards
i10 - Independence excellence, equipped with the tool of
independence of thought.
Finally, Leadership stems from
independence of thought. Self motivated The 10 principles highlighted are not meant
leaders who have an autonomous way of to be a judgment on all the traits a leader
thinking and executing their plans come up must possess. However, based on my
with original models and their conviction personal experience as well as my
paves way for leadership success. These observations of instances of great
leaders have the edge which makes them leadership, I believe that the elements of
distinctly stand out from the crowd. the i 10framework encompass essential
attributes that have served leaders well in
the past and are bound to prove their worth
if applied in the right context and in the
Independence 10
i of appropriate manner.
Leadership
I would like to conclude with a quote of
one of the twentieth century’s greatest
management writers, Herbet Casson, “The
E. Sreedharan, who is more than 70 years men who succeed are the efficient few.
old now, is the architect of the metro rail They are the few who have the ambition
project in Delhi. It is well ahead of schedule and will power to develop themselves”. I
and the pace of work is admirable. His hope the i10 framework acts as a guiding
success is driven by his independent streak force for all of us to develop and transform
and self motivation. His relentless pursuit into effective leaders.
NHRD Apr09 - 2.p65 85 5/2/2009, 3:26 PM

NHRD Apr09 - 2.p65 86 5/2/2009, 3:26 PM
Custodians of human capital of their organizations, leaders of the critical
human resources function, creators of shared vision and alchemists who
nurture and develop the latent potential comprise this section of
contributors, a veritable galaxy of people who truly matter to people
who truly matter.
The invitees include some of the finest human resource leaders in the
country including Vijay Bharadwaj (Dell), Aquil Busrai (IBM), Rajeev
Dubey (Mahindra Group), P Dwarakanath (Max Group), Adil Malia
(Essar Group), Anand Nayak & L Prabhakar (ITC), Vivek Patwardhan
(Asian Paints), Satish Pradhan (Tata Group), Sanjeev Sahi (Hindustan
Aeronautics) , TT Srinath (Pegasus), and Inder Walia (Bharti) who have
distilled decades of experiential knowledge into eminently articulated
expositions of leadership thought.
NHRD Apr09 - 3.p65 87 5/2/2009, 3:26 PM

LEADERSHIP DEVELOPMENT PROCESS IN AN
ORGANIZATION TO SUSTAIN BUSINESS GROWTH
AND LEADERSHIP
VIJAY BHARADWAJ
Abstract
Different business environments call for different approaches on part of leaders. Taking
changing business paradigms into consideration, organizations need to constantly revisit their
leadership strategy and put in place appropriate development interventions. This article
explores the tenets and constituents of the leadership development process in the context of
‘environmental realities of the market place’.
In order to develop leadership potential, organizations need to provide structured programs
and ensure top managements’ commitment.
About the Author

Vijay Bharadwaj is currently Vice President and Head Human
Resources for Dell India and Dell International Services. His
experience includes leading the Human Resources function for
an international banking and financial services major, an
Information Technology bellwether and a Chemical and
manufacturing organisation. He has specializations in Industrial
Psychology and Personnel Management.
The last few months have seen one of the These external factors range from what is
worst economic crises unfold in front of our happening in the business landscape in
eyes resulting in once venerable general to the organizations own ambitions
organisations biting the dust and the whole to deal with survival and growth.
world plunged into an economic Organizations constantly endeavor to
downturn. The spotlight is on senior develop their band of asset-generating
leadership and critical, high performing leaders who combine astute business
talent and their actions in each of these acumen with caring team building skills.
organisations. ‘Leading’ is one of the most Organizations expect them to use a blend
demanding and arduous tasks for an of knowledge, skills, business acumen and
individual, and the leadership journey is a economic intuition, to make business
difficult process filled with many catalysts decisions and develop leadership bench
and inhibitors. A bit like human strength in the company. While most of the
development, the leadership development leadership development literature focuses
in an organisation is a process influenced on development of competencies innate or
by intrinsic individual factors and a intrinsic to an individual, I would like
significant set of external parameters. reflect upon how some of those efforts need
NHRD Apr09 - 3.p65 88 5/2/2009, 3:26 PM

a contextualization with the environmental processes and creates a broad out lay of
realities of the market place. “How we do things here?” The working
ethos, high business performance
Good times and tough times … standards and the resultant organizational
The business landscape poses immense language it creates, makes an immense
challenges to leaders and provides impact on the development of various
opportunities during both prosperous and business competencies of its people across
difficult times. Organizations need to the hierarchy. We constantly hear that
revisit their drawing boards to strategize ‘winning teams create winning behaviors
what best to do, to stay in control in either in their players’. The winning or losing
situation. Every time the economy sinks, streak of organizations creates profound
as in the current recession or rides a surging behavioral changes in their leaders and the
wave, a new business reality emerges. How employees unconsciously synchronize
agile the organization is to capture new their behaviors with their leaders. An
opportunities or the kind of absorption organisation that is seen as an also-ran
capability that it can develop to suffer the develops to the contrary, often a negative
slings and arrows of business cycles, adds set of values and behaviors exemplified by
immense value to the leadership in an defensiveness, lack of an entrepreneurial
organisation. As a few organizations are streak and fear of failure. Such an
discovering today to their discomfort, their organisation often develops the notion that
managers and leaders have no experience ‘leaders need to know all the answers’
of managing the current economic down concentrating decision making at the top
turn. On the contrary, those organizations and a lack of a “can – do” spirit in the lower
who have been through these times quickly levels . It becomes important for the owners
recognize that new business opportunities of the leadership development process to
exist even in recessionary times. The objectively analyze these patterns,
current breed of young leaders in India, reinforce positive behaviors and ensure
who are used to coping with pressures that the top management demonstrate the
associated with economic growth are now required competencies through their
faced with the challenges of managing a actions.
downturn. Changing course from building
scale to focusing on efficiencies is a Growth companies and static or
development process which no class room shrinking companies …
simulation can provide. From an Organizations in various stages of the
organizational point of view, these are business cycle – growth, stagnation or
junctures where structured processes and decline, would tend to have different ways
systems need to be quickly put in place to of dealing with their conditions with
enable appropriate development. Rather resultant effects on the leadership
than leaving it to the individual to cull out development process. Growth companies
his own learning and adapt, organizations present multi-fold opportunities to its
need to support with concrete programs leaders to experiment and whet their risk
and timely inputs aligned to the appetite. Static/shrinking organizations
requirements of business strategy. breed behaviours which are not conducive
to developing leaders. They do not realize
Organizational DNA differentiating that by cutting back on investments in
Successful companies from the Also-rans ... leadership development they cut
Every organization has it own cultural themselves from opportunities of breaking
thread that links the various business out of the vicious cycle of self defeating
NHRD Apr09 - 3.p65 89 5/2/2009, 3:26 PM

behaviours and resultant organizational individuals get the requisite skills and the
decline. There is little realization that knowledge to develop future capabilities.
leadership development would encourage As far as possible the learning route map
their natural tendency to innovate, must allow the individual to select his
experiment, learn and grow helping them learning style. The detailed structure and
embrace the virtuous cycle of growth and processes of development blending hard
progress. exposure to business problems with softer
aspects like mentoring and coaching
Finally the people … ensures the right combination of Yin and
People selection in organizations, on the Yang.
basis of educational achievements and the Corporate training programs and the
pedigree of the educational institutions executive development programs
serves the limited purpose of ensuring a conducted by business schools can help in
basic fit. Gauging an executive’s fit for the imparting basic management skills though
current management tier and his potential not contextualized to specific requirements
to perform at levels above is another of say a software service provider or a farm
matter, and best done in actual work equipment manufacturer. At best they help
settings. Over time, individual executives with a beneficial brush up of
performance helps identify various business fundamentals and learn from the
competencies, skills and gaps of experiences of benchmark organizations.
employees, giving the organization a clear The design of leadership capability
picture of the investment that is needed to development program must be carefully
sculpt potential leaders for the future. This and deliberately undertaken by
process needs to be carried out very organizations themselves. Acute
carefully over a sustained period of time awareness of organizational business,
as mistakes could prove very costly. The market realities, organizational culture and
objective of the leadership development competency requirements are essential to
programs is to convert high performing create these programs. A successful
employees with high potential into leaders leadership development program
who can handle growth and related designed for a multiproduct, multi-
complexities with integrity and a country, computer hardware producing
commitment to organization values. company is unlikely to create a leadership
A complex interplay of these intrinsic and pipeline for a local Indian pharmaceutical
extrinsic factors create the environment in company and vice-versa.
which organizations grow leadership Management experience forms the fulcrum
talent to reach their true potential. In turn of a robust leadership development
only those leaders who have potential, help process. The key imperative of such a
the organization achieve business process should be to create learning
leadership and success. situations and experiential simulations
where the individual can find a rigorous
Leadership development process exercise of leadership competencies. Here
The objective of the leadership are some ideas for you to look at:
development in organisations should be to
provide opportunities for talent to grow • Leadership competencies
through structured experiences in a Every company has its own take on
learning environment. The basic content of what they want their leaders to
the program should ensure that the accomplish. This wish list needs to be
NHRD Apr09 - 3.p65 90 5/2/2009, 3:26 PM

broken down into a series of winning management wants to emulate.
behaviors. These behaviors can be Constant interactions with these role
further grouped under various models reinforce various management
leadership competencies. These behaviors and also serve as
leadership competencies become the opportunities where the individual can
recipe for the development process. use the mentor as a sounding board for
They provide a level wise set of bouncing off ideas and doubts. The role
requirements to the development of the mentor is to also probe the
process and also guide the design of the various actions of the individual and
development process. These delve deeper and ask questions on the
competencies need to be constantly rationale for various actions. These
scrubbed against the ever changing dialogues need to tease the reflective
market situations and matched with analysis skills of the individual and help
new realities. him or her to question various exhibited
behaviors. Reflective observation lays
• Leadership Kindergarten a key foundation in building the ability
The fundamental tenet for every in the individual to cement his learnings
nursery or kindergarten is to create from various diverse experiences and
experiences around what a growing also connect them to the larger the
child needs to learn in the most structure in his / her mind.
supportive of environments. What
organizations need to do is to create • Leadership Coaching
leadership nurseries for their While mentoring helps in the tutoring
employees - opportunities where the process, a more personalized approach
individual can work and learn. The is the leadership coaching. The coach
essence of these programs is also to helps in enabling the individual to
design experiences where the examine his strengths and gaps and
individual has to exhibit these work towards closing those gaps with
leadership competencies to solve and suggested inputs. Such close
manage real life work situations. The interactions with leaders help in
experiences need to be created around building confidence in the individual
class room training and board room and also help to explore what suits best
interactions. The experiential learning from him or her preferences - behaviors
that occurs in organizations based on that suit the individual strengths of the
how they are grappling with the person.
economic environment and their
success or the lack of it with strategies • Leadership Musical chair
they had adopted is in itself a great There is no substitute for the exposure
learning laboratory for leaders to to different positions – with the changed
develop their capabilities. job description and different expected
work outcomes – it contributes to the
• Leadership Mentors overall development of the individual
A good practice to follow in these into a well-rounded professional. The
programs is to assign a leadership metaphor of the different chair in each
mentor. These mentors need to be round is for the change assignments
professionals in the organization with and the reducing number of chairs
high credibility and whom the entire denotes the move up in hierarchy. This
organization admires and the junior also helps in fostering a general
NHRD Apr09 - 3.p65 91 5/2/2009, 3:26 PM

management outlook in the individual discussion. Whether it is the water
rather than the targets and pressures of cooler chat or the coffee table tête-à-tête,
the respective function of business unit. these discussions are indispensable in
In an organization known for creating an atmosphere of positivity
developing leadership talent, this often within the organization. Creating story-
is a well organized process with new boards for teaching difficult subjects
assignments being given to developing like ethics and values in an organisation
leaders almost with a clock work is the most effective way of
precision. internalizing these learnings.
• Leadership Podium • Leadership level execution skills

An exposure to formal senior The programs and initiatives in a
management meetings and learning successful business organisation have
opportunities with the top management a serious focus on execution. Although
of the organization builds confidence in organizations have several
the person. It also provides an implementations going on at every
opportunity to interact and get the point of time, what they lack is the
views of the wider leadership discipline to create a robust feedback
community. Organizations need to and control dashboard which also
have a structured program where the encourages the rigor of project
individuals get opportunities, on a management on to some of the less
periodic basis, for formalized learning tangible initiatives. Having execution
sharing capsules. When this process metrics is also fundamental to the
is embedded in the operational fabric sustainability of these initiatives. The
of the organization, it serves as a organizational literature is full of
regular experience reckoner. In such examples on how great business ideas
organizations leaders provide were not executed efficiently leading to
opportunities to promising talent in wastage of resources and opportunity
their teams to make presentations to cost. Assigning responsibility early on
senior management forums instead of for executing on complex projects can
doing it themselves. help develop a strong internal pipeline
of leaders who are strong at execution
• Leadership Chronicles as well.
“Education is best imparted through Although most of these ideas and
fables” – one cannot over emphasize programs are being taken up in today’s
this notion. Whether it is Panchatantra companies there are also several booby
or Grimm’s fairy tales, we have always traps:
found their allegories build a basic
sense of life, good, evil, socially o The prevalent accounting practices
acceptable actions in all its readers having a parochial view to the
especially in their formative years. learning and development costs.
Leadership chronicles are what great These are not very differentiated in
leaders in their organization or industry the organization’s financial
did in various trying and dodgy times reporting and hence a lot of
and how they prevailed over the initiatives fall under the guillotine of
obstacles. These ‘stories’ filter through cost reduction.
the rank and file of the organization and o Some of the management metrics
become the subject of many a encourage organizations to take
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short term tactical measures on are known to spend a lot of time on
various issues like training person leadership development issues and
days, etc leaving long term resource plans. This time is clearly set aside on the
development plan out in the cold. annual calendar of the top management
and is never swapped for more ’urgent
Leadership is also a ‘perishable things’. A simple review of leadership
commodity’! One has to constantly look at succession plans in an organization
the program and ask the question – has this clearly sums up where it stands and
competency ‘expired’? As a new business whether its plans have delivered. Such
reality emerges every few months, one has organizations look proactively at the
to keep a keen eye on the program efficacy of the leadership development
fundamentals and some assumptions of program on the one hand and emphasize
business which have played a role in the the importance of the initiative in every
entire design. management forum down the line on the
other. This helps in making all the current
Finally, I believe that leadership leaders in the organization sensitive to the
development is definitely a board level need for leadership development.
imperative. While the implementation Successful companies make leadership
responsibility can be delegated, there is development a part of their long term
no substitute to top management time business objectives. And that is secret
for the initiative. Successful organizations recipe for their success.
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LETTER TO A YOUNG PROFESSIONAL
AQUIL BUSRAI
Abstract
This article is in the form of a letter written by the author to a young professional
on qualities that make a good leader.
About the Author

Aquil Busrai is Executive Director Human Resources with IBM
India. He has over 36 years HR experience, both in strategic and
operational HR with blue chip organisations like Unilever in Kenya
and India, Motorola in Asia Pacific and Shell in Malaysia. He is
the National President for National HRD Network.
Dear fellow professionals, • Who can work with high level of

comfort in a culturally diverse
Thanks to the delayed flight that you and I
environment
had a chance to chat up last week at the
airport. I was intrigued at your repeated • Who recognize their own derailment
questions about qualities of a good leader factors honestly. And act on it
and could not help but notice how you • Who ask for larger and more complex
were trying to correlate those qualities with roles
success of leaders in real life. It had me
reflect on my own observations over all • Who let their expectations be well
these years and it offered an opportunity known to their team
to dwell on qualities that I have appreciated • Who have a good Mentor and who use
in many good leaders that I have had the them with regular frequency. And
privilege to work with or closely observe. attend their meetings well prepared.
Then came this invitation to write an article • Who create a strong and workable plan
for the Network journal. I decided against for work-life balance
the idea of writing an article on leadership • Who own their career themselves and
and instead went back to our conversation consider the organizations as a
and my subsequent reflections to capture facilitator
the essence of leadership in practice. The
• Who take charge of the situation and
result was a list that I would like to share
hold themselves accountable for its
with you.
outcome
Successful leaders are those :
• Who use the systems available in the
• Who are fiercely passionate about their organizations but questions its efficacy
profession and are proud of it from time to time
• Who consistently display highest level • Who are geographically mobile. They
of integrity have an accelerated career growth
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• Who are not bashful • Who delegate but hold themselves
accountable
• Who enjoy mentoring and take pride in
the success of the protégé • Who provide regular feedback
• Who do not have fear of failure • Who renew themselves through
learning opportunities
• Who do an honest and critical self
assessment annually • Who emulate their Role Models
consciously
• Who demonstrate passion for their
organizations • Who are decisive
• Who have a T Shape expertise. Deep in • Who dare to think big
one thing, general in others • Who are powerful communicators
• Who own and execute on personal • Who engage their teams and involve
performance and take accountability them in decision making
• Who identify and groom their successor • Who are themselves good follower
one who is truly able
• Who demand high performance work
• Who define clear roles for their juniors culture and act on it
and hold them accountable
• Who differentiates in Rewarding high
• Who realize that employees do not react performing employees
nor behave the way they are expected
to • Who takes bold action on low
performers
• Who want to be first line managers
because they realize that it will provide • Who leave a legacy
them an opportunity to showcase their
leadership skill The above list is certainly not exhaustive.
But the points enumerated are ones that
• Who spend quality time in self have worked well for many leaders and
reflection have shaped their success. Like you, all of
• Who develop and nurture professional us as professionals keep learning in life.
contacts and relationships Many learn through observing masters at
play, I hope you too come across leaders
• Who leverage professional who you may desire to emulate. And then
development opportunities for become a good leader yourself. When that
themselves and their team members happens, you may re-visit this list and add
• Who simply want to excel your own learning for the next generation
of professionals. And the journey of
• Who set their own standards rather learning will go on …
than set targets based on what others
have achieved
• Who develop a large network within Yours truly,
the organization and access it Aquil Busrai
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LEADERSHIP IN TOMORROW’S COMPANY
RAJEEV DUBEY
Abstract
As the world shifts to a new business order where there is distrust of big business houses, less
political stability and developing countries play a more substantial role, leadership too will
have to reposition itself and adjust to the rapidly changing times. The article attempts to define
the basic leadership traits that become necessary to steer the organization through the ‘choppy
waters of such a new World’.
About the Author

Rajeev Dubey is President (HR, After-Market & Corporate Services)
& Member of the Group Management Board of Mahindra &
Mahindra Ltd. He is also on the Boards of several Group companies
including Mahindra Ugine Steel, Mahindra Intertrade, Mahindra
First Choice, Mahindra Steel Service Centre, and Mahindra Retail.
He is also the Chairman of Mahindra Insurance Brokers and
Mahindra First Choice Services. In addition, he is Chairman of the
Sustainability Council and CSR Council, and a Member of the
Corporate Governance Cell, of the Group. He also serves on the CII National
Committee of Indian MNCs, the CII Apex Council on Affirmative Action and the
CII Western Regional Council.
A brave new world is emerging from the economies, especially the BRIC
ashes of the current economic meltdown countries.
and while I am no soothsayer, I can safely • A far stricter regulatory environment
say that we will need to create a different
framework for tomorrow’s company if it is • Much greater public-private-not for
to survive and prosper in a world in which profit partnerships
leadership will have to face challenges that
• Demand for addressing the triple
will require a mindset quite different from
bottom-line of profit, people and planet
the ones, which have worked in the past.
The new world order is likely to be To navigate the Corporation successfully
characterized by: through the shifting and choppy waters of
the new world order, leaders will need to rely
• Mistrust of big business heavily on
• Far less stability in economic and A. Empowerment
political affairs
B. Innovation
• A shift in the centre of economic power
away from the traditional bastions of C. Creating opportunities in situations of
USA & Western Europe to other apparent conflict
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This will require at least the following basic 3. Innovation requires people to be given
leadership traits: freedom to experiment and make
mistakes (though within limits and not
1. A deep sense of self-awareness and
repeatedly!) It also requires the leader
authenticity, which genuinely
to show in his daily behavior the ability
encourages others to experience and
to do, and appreciate, lateral thinking.
unleash their human potential.
Creating a culture where people are not 4. A genuine belief that talent is abundant
bound by hierarchical lines of command and not scarce, and that the leader’s
and control, and rules which stifle the basic job is to create an energy-space
spirit of experimentation, will be a where latent talent can flower, and a
major role of the leader. This is not thousand leaders bloom across the
something which can be “put on”, a length and breadth of the
mask which conceals an actual organizational landscape. Clearly,
tendency to dominate and control, for talent development will become an
tomorrow’s employee will demand so increasingly important and time-
much freedom that the mask will soon consuming role for tomorrow’s leader
be stripped away. This freedom will be and he will be well advised to use the
required not only because of the many Appreciative Enquiry approach, where he
specialized skills which will need to be builds on the strengths of his people
brought together to solve problems, but instead of focusing on weaknesses and
of the emerging mindset of Gen Y which areas for improvement (which was the
no longer has respect for authority traditional approach) and this not only
hardwired in its genes. Hence we need for select hi-potential executives, but for
the confident and authentic leader who solid performers who make up the bulk
people can trust, and who trusts people of the workforce.
in turn. This authenticity and self-
confidence will depend not only on 5. To come from a space which knows that
expertise and experience in multi- business outperformers and concern for
cultural settings, which will people are not antithetical but in fact
increasingly become an essential part of complementary forces. Creating
the leader’s armory, but also on an synergy out of seemingly conflicting
evolved and “centered” spiritual core. forces and objectives, and the ability to
Thus the intellect, heart and soul need create win-win situations, have been the
to work in tandem and fire on all six hallmark of the most successful change
cylinders if the leader is to be able to initiatives I have seen. A paradigm shift
genuinely empower his people. is taking place where forces which were
seen to be in conflict, now become rich
2. Genuine respect for others, and the and powerful sources of synergy and
compassion required to see things from strength, as competition yields to co-
the other’s point of view, without which opetition in the age of diminishing
the leader will not be able to create and natural resources and global concerns
sustain a culture of empowerment and of climate change.
innovation. This requires an open mind
and open heart, the ability to be 6. A genuine commitment to the triple
genuinely non-judgmental and be able bottomline. Till now the commitment
to focus on issues not personalities, to community and planet has been more
build on strengths and not only seek to intention than action, but the time has
remove weaknesses. come when corporates will be under
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increasing pressure to demonstrate that economic, social and political life will
they mean and act on what they say. become a fact of everyday existence.
This pressure will come not only from Hence leaders will need to have the
activists but also from government and ability to deal with change, uncertainty
even investors and the response will and multi-polarity in place of the order
have to be sustained over a considerable and discipline of the industrial
period of time for it to show measurable capitalism of the twentieth century.
results. The real skill will be for the Wisdom and intuition will have to
leader to convince his people that this complement intellect and logic in
approach has to be enhanced and will business decision making.
make sound business sense. Hence
action covering product, process, 10. The ability to deal with the multi-cultural
people and community. dimensions of doing global business –
people, languages, locations, beliefs,
7. I firmly believe that this must be a mass customs and conventions. The uni-
movement with crusaders and apostles polar world dominated by the US, and
who can spread the word and instil to a lesser extent Western Europe, is
them in the minds of the young. Not slowly and surely yielding to a multi-
only in those who are being prepared polar world where most economies are
for leadership positions, but equally in getting integrated into the global
those who will serve in the value-chain network of countries which are
right down to the grassroots level. involved in the flow of goods, services,
8. The ability to connect with people, both capital and people. Leaders who have
within the organization and in the not worked in several countries will be
external environment, will be a critical at a distinct disadvantage, and work
requirement. Within the organization, experience in countries like China,
since the comfort of the command and India, Russia and Brazil will carry a
control culture of the industrial premium. Recognizing this, leading
organization has been replaced by the business schools and universities are
need to persuade and influence people insisting on global experiences for their
in flat net-worked organizations, the students and this trend will only
communication skills of the leader will become stronger in the years to come.
become ever more important. Since
communication is a two-way process, 11. And yes, tomorrow’s leader will have
listening skills will be at a premium. In to be e-savvy! If anyone had doubts, the
fact the leader as coach/facilitator/ latest US elections should conclusively
counselor/guide is the new avatar lay them to rest: thanks to Obama.
which is being born. With the emerging 12. For too long have too many in positions
enhanced role of government and of power believed that commercial/
regulatory authorities in the fortunes of business success is inherently in conflict
companies, the leader will spend more with Ethics and Values. And yet we
and more of his time interacting with lament the absence of ethics/values and
external constituencies. He will have long for a world where “success” would
to have the inclination and space to live not necessarily mean having to sacrifice
with differing points of view and feel basic human decency based on trust
comfortable about it. and respect. The good news is the
9. Uncertainty, violent fluctuations and emerging groundswell of belief that in
co-existence of multiple forces in fact sustained business success sans
NHRD Apr09 - 3.p65 98 5/2/2009, 3:26 PM

ethics/values is not possible, even if we 15. Finally, men and women in the
forget the desirability aspect of it. organization are looking for purpose
and meaning in their lives which go
13. Here too is a fundamental mental
beyond parameters like profit, market
paradigm shift which practitioners and
share, sales growth etc. People are
educational institutions have to work
groping for a higher order purpose
on together, if society is to survive in
which touches and satisfies a deep inner
the brave new world where win-lose must
chord, a return to basics in terms of
necessarily, even from the most hard-
emotional and spiritual needs even as
nosed and selfish point of view, yield
physical standards of living rise.
place to win-win. Where the ability to
listen, trust and respect are not pooh- 16. They will look for tomorrow’s leader to
poohed as “soft” skills meant for the infuse this purpose into the
weak and ineffective, but become the organization vision and life.
cornerstone of the foundation that
strong and effective leaders need. 17. Clearly, this list is not exhaustive, nor
is it meant to be. Nor are these attributes
14. Where a higher order purpose which
a substitute for strategy, vision, process
drives people to outperform and reach
and systems. But taken further, they
for the stars, is not the realm of esoteric
could lead tomorrow’s company to
arm-chair philosophers, but the blood
sustained success in the brave new
and gut of highly successful business
world.
people and organizations. Where truth,
compassion and a spirit of service
(Satya, Prem & Seva) are not things to
be ashamed of in the world of success * I would like to acknowledge Tony
and achievement, but are in fact critical Manwaring for the term “Tomorrow’s
success factors Company”.
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LEADERSHIP IN PERSPECTIVE —
AN INTERVIEW WITH P. DWARAKANATH
by AMRITA VIJAY KUMAR
Abstract
A combination of mental toughness and personal humility with personal resilience is
significant to be a good leader. A leader also has a high degree of emotional intelligence in
terms of creating awareness, self regulation, motivating people and exhibiting empathy.
Ultimately, it is to deliver what you promise, to embrace tough love and to demonstrate the
human touch that forms some of the key leadership qualities.
Amrita Vijay Kumar speaks to P. Dwarakanath about his leadership journey of over
30 decades, the challenges faced and the lessons learnt…
About P. Dwarakanath
P. Dwarakanath is the Director – Group Human Capital of Max India Ltd,
and brings rich and varied experience of nearly 38 years. Dwarakanath is a
Bachelor of Science, Law and holds Post Graduate Diploma in Management
in PM & IR. He has retired from GSK as Director – Human Resources and
Administration, India/ South Asia after spending 27 years with the company.
He is on the board of several Companies / Institutions including GSK
Consumer Healthcare Ltd. He has won many awards including the
“Pathfinders Award” by the National Human Resource Development Network in 2004; “HR
Professional of the year” by Mid-Day in association with DAKS, London and others in 2005
and the “Career Achievement Award” by GSK International 2006.
A: You were with GSK for over 30 years and approach. I am also not trying to preach or
experienced the entire leadership journey to advocate the concept of ‘cradle to grave’
being a director. Longevity is a critical factor or lifetime employment in one
for a leader to drive a vision for the organization. organization. Having said that, I believe
What were your experiences in this regard? that you need to have spent enough time
D: I was a management trainee at DCM and in an organization in order to understand,
went on to become a director at GSK. It is appreciate and bring any transformational
true that if you want to build an change. And when I say ‘I’, it does not
organization it is important to spend mean that change is brought about by one
enough time understanding the culture, the individual, rather it is a team effort.
people and the processes so that you can I have had a very fascinating experience in
take them forward. Organizations are not my career as an HR professional and have
built in a day or two. Yet looking at the witnessed very exciting times- with respect
contemporary scenario, I acknowledge that to a constant evolution of the Indian and
we need to be practical and realistic in our Global business environment and the
NHRD Apr09 - 3.p65 100 5/2/2009, 3:26 PM

transformational change it brought about acquisitions, how you manage, motivate
to the approach and attitude towards the and retain your people becomes a key
HR profession. I started my career in early leadership quality. You may need to make
70’s when the focus of HR was more on tough decisions due to business
employee relations, fire fighting, welfare imperatives but how you make those
and legal compliances. Today, however, decisions painless for your people is what
HR has grown into being a more proactive makes a good leader. Some decisions may
function. In the last ten years, HR has be hard but if the process is equitable and
undergone a change from being a mere transparent, employees will go with the
facilitator of HR processes to becoming a satisfaction that the company has been fair
strategic business partner. I think the real to them. Ultimately, it is to deliver what
test of HR in the future is to be able to “add you promise, to embrace tough love and
value” to the business. What I call the to demonstrate the human touch which I
‘Dave Ulrich’ test, the ‘wallet’ test is how call emotional intelligence that forms some
HR can influence your customers or buy of the key leadership qualities.
your products or seek services from the
organization at the cost of your competitor. A: You also experienced and steered large scale
I think HR is playing a vital role in transformations - over 6 mergers. Could you
organizations and a paradigm shift has please share special leadership traits / lessons
taken place in the last decade, and there is that you gained from that experience?
still some way to go.
D: I think fundamentally you need to
To sum it up, I have gone through various accept that change is inevitable. Embracing
phases in my career, from having a welfare change and making the transition seamless
orientation to fire fighting to maintaining and painless is what matters. One needs to
Industrial Relations to managing HR look at change as an opportunity rather
processes to being a proactive facilitator than as a threat. It is important to manage
and to being an institutional builder. both the set of people, those who you could
retain and those who you could not. I feel
A: What are the major leadership qualities that that there are five key requisites of change:
helped you grow within GSK in your stint of
over three decades? Firstly, I feel that it is the Organization that
is the hero and no individual is bigger than
D: Fundamentally for any leader or even the organization. There have been great
more for an HR manager, it is important leaders like Jack Welch who have played a
to have a high degree of emotional critical role but ultimately it is GE that
intelligence in terms of creating awareness, stands. People come and go. Everyone
self regulation, motivating people and works for the organization and if there is a
exhibiting empathy. However, mere IQ or merger or an acquisition or any
sheer intelligence is not enough. Having transformational change, ultimately it is
said that, I believe it is also important to important to recognize that it is in the
deliver what you promise. In order to interest of the organization.
deliver or execute, it is important to carry
your team with you. Leadership is not one Secondly, times may be difficult, but it
man’s effort as you walk with and through depends on how you look at it. It is the
people. Apart from this, it is important to glass half full or empty syndrome. Whether
embrace the art of ‘tough love’, which is it was the Smithkline Beecham merger or
being tough on issues but soft on people. the Beecham acquisition or the Glaxo
In rough times of economic downturns or Smithkline merger, what we learnt was
NHRD Apr09 - 3.p65 101 5/2/2009, 3:26 PM

that you need to look at it as a positive example, we said our global quest is to
opportunity rather than as a daunting improve the quality of human life - be it
challenge. If you have a winning attitude, patients, customers, clients or employees.
nothing is impossible. We decided to be involved only in those
businesses where we could live up to this
Thirdly, there are some changes that you mission. So we disposed off other
anticipate and some that you don’t. For e.g. businesses such as the personal care where
no one anticipated a downturn two years we could not clinically prove value
back. Therefore in these times, team addition. That was a paradigm shift in our
learning and sharing becomes important. approach which was based on our mission
Some people might become more and culture.
important than the others but ultimately it
is a team effort. Like in any movie, the A: You have also been the past president of the
credit goes either to the director, the actors, National NHRD Network. How is it different
but there are enough number of people to lead a fraternity from leading an
contributing behind the screen. Not organization?
everyone gets the Oscar. Similarly, for a
drug discovery only one or two will get the D: It is a very different experience, which
Nobel Prize although there may be is not only exciting and interesting but also
thousands working with them to ensure challenging. When you are leading a
success. Hence it is imperative to recognize business you have structures, systems and
that everyone has contributed, and as long hierarchies but when you are running a
as you do that, team learning and sharing voluntary, non profitable, professional
takes place. organization- with people with high
caliber, leadership attributes and
Fourthly, communication is very critical. intellectual ability, it is important to carry
Communicate to the right people at the people with you. Thus, the style of
right time at the right place, especially leadership is different as your role is more
during a transformational change. of a facilitator. The approach is more
participative, transparent and open instead
Lastly, how you hardwire the soft stuff is of the ‘tell sell’ approach.
what makes the difference. Hard-wire is
the standard systems or processes and soft- A: Another aspect that will surely interest our
wire is the values. A transformational readers is your connection with sports. You
change brings an opportunity to bring in a have been a university level tennis player. What
new culture, which was what happened impact has that had on shaping your overall
during the Smithkline Beecham merger. It personality?
is very tough to bring a new culture in an
ongoing organization as you need to have D: It is a very interesting question as sports
a very compelling reason to bring about a really shaped my style and outlook
change. Therefore it is important to towards people, business and leadership.
translate values into great strategies, If you are a competitive sportsman, you
systems or processes. The difference strive to win a game. Yet at the end of the
between a good and a great company is day, I realize that everything is not
how you translate the values into winning. It is how you contribute to a cause
successful deliverables. That is how which is more important. You need to have
Smithkline Beecham and Glaxo Smithkline a sporting spirit and accept and appreciate
were successful as we could hardwire the both winning and losing. Conceding
soft stuff into actionable. To cite an defeat gracefully and striving for a win-win
NHRD Apr09 - 3.p65 102 5/2/2009, 3:26 PM

scenario even when you are losing a match D: In order to develop the culture of an
is important. organization, it is critical to start from the
top - which means from the CEO or
One of my magic moments was when we business leaders. There needs to be a role
won a big tournament where at a critical model at that level who walks the talk.
stage one of the points which was When culture is driven from the top and
supposed to be in our favor was ruled cascaded down, half the battle is won.
against us. Yet in the next point our Secondly one may start an initiative very
opponents conceded the point. I remember well, but sustaining development
this match more for the sporting gesture initiatives for long is more critical. It is easy
than for winning the match. Sports truly to practice something new but tough to
helps one imbibe the qualities of teamwork, sustain it and that is where the practice
sporting spirit, patience and enduring becomes robust and reliable. Constant
resilience. communication at the right time in the right
forums is important to enable
A: Being a veteran in the industry, what is your transformation of culture. Therefore to
view on the evolution of leadership in the ever- develop leadership, one should start from
changing paradigms? the top, be a role model, walk the talk,
sustain the process and communicate well.
D: I think leadership has gone through a
Also if you don’t keep scoring, you are just
huge transformation. To define a great
practicing. It is important to measure how
leader, I am tempted to quote Jim Collins
the organization is performing and how the
from his book ‘Good to Great’. A hallmark
people and the culture are getting
of a great leader is a person who
impacted.
demonstrates a high level of professional
will and personal humility. It goes without When I was looking for the position of
saying that a great leader should have high Director HR at Glaxo Smithkline, one of the
degree of emotional intelligence, he must questions I was asked informally is
be able to deliver and carry his team with ‘Having been with the company for so
him, he should have not only business many years, how many people have you
acumen, but also a human touch. But that developed? Who are they and how did you
human touch can be inculcated only when develop them?’ A good leader is one who
one has demonstrated high level of should not feel insecure to develop the
personal humility. Unfortunately, what we second line of leadership. The leadership
see with most successful managers is that pipeline is very important. I believe that
when success goes to their head, they tend experiential learning is the best way to
to lose humility. While they have the grow and nurture talent. A leader should
professional will to succeed, they do not have the ability of story telling where he
demonstrate personal humility. By can share his experiences to coach others. I
humility I don’t mean meekness or think apart from coaching, mentoring,
subservience. To conclude, great leaders sharing feedback or inputs - storytelling is
are not just charismatic but also have high a great way to nurture talent.
degree of professional will and personal A: Talking of leadership development, what is
humility. your opinion on it and its current state in
organizations today?
A: How does one nurture leaders in an
organization and how does one instill the values D: In my view leadership means leadership
of ownership, which is critical for a leader? at all levels and one can’t suddenly develop
NHRD Apr09 - 3.p65 103 5/2/2009, 3:26 PM

leaders at the top level. In GSK, we have a Instead it is constitutive of how one
concept of grow your own timber. Secondly, accomplishes the task of leadership, how
we believe that everyone is committed and one works with people, and how one can
everyone can contribute. Thirdly, one evaluate one’s own attitudes and
should develop oneself and others since behaviours and make necessary
developing oneself is the first step to be adjustments from time to time.
able to develop others. Also, one cannot
develop others through positional power, A: What is your opinion on the role of a follower
it comes from one’s personal influence. A vis-à-vis the role of a leader?
combination of personal power through
D: A good leader is also a good follower.
one’s position can help nurture someone.
Unfortunately, some of the great teams in
Therefore, continuous learning at any stage
sports fail because everyone is a great
is important to gain acceptance. To sum
leader but not a great team player. It is
leadership development - catch them
important to recognize that depending
young, realize that leadership is at all levels
upon the situation, someone else may have
and develop self and others.
better competence or knowledge to
A: Are there any leadership theorists or leaders manage the requirements. Being able to
that you do admire? If yes, what has been their accept others leadership, being able to learn
influence on you? and leverage from their strengths despite
being in the position of hierarchy, is the
D: Personally there have been a couple of hallmark of a good leader. And that can
leaders who have had an influence on me. happen only with a high degree of
One of them was the managing director at emotional intelligence and personal
GSK, who was my role model, apart from humility to be able to understand and
my father, who taught me the art of ‘tough appreciate one’s strengths and weaknesses.
love’. I feel that to be a great leader, one Unfortunately leaders feel that their
should not have any bias. Ones actions competence is greater than others on every
should be based on fair play and equity. I aspect, but it may not be the case.
am also very impressed with what Jack Accepting that someone below may
Welch has done for GE, by nurturing talent possess certain skill that I probably lack, is
across levels, focusing on creating learning critical awareness.
centers and developing GE as a great
organization. A: Do you plan to write a book on leadership
yourself?
A: As a leader how do you define your first
principles and how do you live by them? D: Yes, I am planning to write a book on
some of my experiences. The book is titled
D: I think that firstly it is important to Mali to Maalik. If you ask me what HR is all
develop trust as nobody will accept a about, it is being able to handle every one
leader whom they can’t put their trust in. right from the Gardner to the CEO. It
And trust cannot be built in a day; one has concerns how you handle the entire
to consistently walk the talk. bandwidth of employees from lower to the
higher levels. Managing diverse workforce
Secondly, it is important to have the from a global context is important, not only
competence to deliver what you promise. from an inter and intra-cultural context but
The third important principle to live by is also managing different types of people in
executive intelligence. Executive the same organization, country or
intelligence is not academic intelligence. geography.
NHRD Apr09 - 3.p65 104 5/2/2009, 3:26 PM

A: After so many decades in the industry, what should be focused. They should also
keeps you going… develop the ability to take decisions, one
out ten may be wrong, but the ability is
D: I think what keeps me going is
important. Also, one may be able to
emotional energy. I realize that there is
demonstrate business acumen but
always scope to learn as long as one enjoys
giving a human touch is equally important.
what one does. What I am learning at Max
I feel that a combination of mental
as compared to GSK is entrepreneurship
toughness and personal humility with
skills, ability to take risks, make quick
personal resilience is significant to be a
decisions and the abililty deal with multi
good leader.
sector business in a big conglomerate.
These challenges keep me going. To sum it up, I feel that there are four kinds
A: Any message to youngsters who aspire to of people. First are those who watch things
be leaders some day. happen, second are those who don’t know
what is happening, third, those to whom
D: Our country is fortunate to have a things happen, but the distinguished
talented bunch of people. There are many minorities are those who make things
who are being groomed to be leaders. happen.
I think those who aspire to be leaders
Interview conducted by Amrita Vijay Kumar, Senior Consultant - Human Capital,

Ernst & Young.
NHRD Apr09 - 3.p65 105 5/2/2009, 3:26 PM

CORPORATE “UBERMENSCH” – A VIEW FROM
ETHEREAL TO THE REAL…
ADIL MALIA
Abstract
Drawing from Friedrich Nietzsche’s concept of the “Ubermensch”, literally translated as
“Superman”, the article attempts to define the characteristics of the ‘Corporate Super
Achiever’. It touches upon the unique strengths of the modern corporate leader who stands out
from the others and energizes those who surround him. The article also suggests a way forward
to develop the ‘Ubermensch’ for the future times to come.
About the Author

Adil is the Group President - Human Resources at Essar. He has a
Bachelor’s degree in Commerce, a Bachelor’s degree in Law and a
Master’s degree in Personnel Management and Industrial Relations
from Tata Institute of Social Sciences. With 29 years of global
experience spanning geographies in India, South-West Asia, Middle
East and the U.S., Adil joined the Essar Group from Coca-Cola India,
where for 9 years he handled different assignments, last of which
was as Senior Vice President (HR) for India and South-West Asia.
Adil is a trained facilitator and a certified trainer. He has done extensive work in
areas of Strategic Leadership and Organisation Development in multi-cultural
business environments with large MNCs and Indian organisations.
Friedrich Nietzsche, the 19th century figure of modern times. Jerome Siegel
German philosopher and classical modeled the central character of his
philologist, for the first time indicated creation, “Superman”, on the basis of
about ubermensch in his book “Thus Spoke Nietzche’s idea.
Zarathustra”.
The racist villains in history have
The book’s protagonist - “Zarathustra”, attempted experiments in selective
contends that “man is something which breeding, genetic engineering, cloning and
ought to be overcome”. All beings so far nano-technology to create a superior race
have created something beyond themselves; (Hitler et al). Their experiments miserably
mankind should not ebb this great flood and failed. In fact, such experiments were
continue to strive to transform and create bound to fail as these short-cut attempts
something higher than itself. This is the were based on developing superior
central philosophical theme. performing races through unnatural
engineering and birth rather than the
“Ubermensch” literally translated means laborious alternatives of scaling
“superman”…the wholesome, most competencies, endeavor, toil, efforts and
competent, strongest and morally upright training.
NHRD Apr09 - 3.p65 106 5/2/2009, 3:26 PM

The contemporary corporate universe has them “insane” sobriquets, until that barren
demystified this ethereal superman. Over land transforms itself into a gold mine.
the last few decades, the corporate world Then they call him a visionary! Ability to
has experienced the presence of many such pierce through the superficial, sense
“ubermensch” - wholesome and competent underlying signals and uncover hidden
men of blood - flesh and bones, who in their value is their unique ability.
own chosen fields of management practice,
have excelled and performed incredibly “Activation” in pursuit of dreams, as a
beyond the set thresholds of performance theme, predominates the behavior pattern
known to mankind until that time. of the corporate ubermensch. Assessing and
managing accompanying risks is a natural
I have personally known and worked with appendage of the activation process. In
some of these ubermensch. I have also maniacal pursuit of their dreams, they
worked with some self-proclaimed reflect consistent, conscious and energetic
corporate supermen who claimed to be action orientation, which they derive from
game-changers, but, who changed the their will power. They do not get frenzied
game such that they lost their winning or distracted by the myriad of the day to
advantages. day. They are highly focused and energetic
and come across as reflective and calm
Whilst it is true that no two leaders have amidst chaos. Constraints can’t hold them
the same sequence of strengths from back. And that at times, can get to be a
amongst the zillion competencies and worry…for such an action man could race
abilities required for success, what makes for fulfillment of his dreams, removing all
the critical tipping point difference for the full stops. Superman, therefore, has to be
corporate super achiever? His country morally upright and controlled by strong
cousin may have studied in the same commitment to VALUES. That is what
institute, read the same books and yet, makes him an “ubermensch” – otherwise,
may not be able to match the same maniacal action bias in vigorous pursuit of
success. Leaders may have identical dreams may make his marshal ways, not
expectations, but the way they reach their necessarily scrupulous. Some Supermen I
goals is always dependent on the unique know failed this “Values” test and licked
configuration of their strengths. One sees dear earth beneath their feet.
three clear trends and predictable patterns
in their footprints, and therefore, an Supermen emotionally influence people
opportunity to learn by imitation. and mobilize resources behind their
dreams. To garner people support, they use
Corporate ubermensch are endowed with their influencing relationship skills much
this ubiquitous relationship with the more than their control and command
intangible. They see the invisible. They skills. They, however, do not hesitate from
spot potential winners and faint trends using them, when necessary. They have a
before their rivals or customers do. They unique ability to bond with and build long-
are able to clearly see through a mirage, sustained relationships, which could make
spot the distant land, smell the scent of an their people walk even through firewalls
opportunity, read the unwritten messages for them. They may be charismatic and
and lucidly read the personalities of people may have their own ambitions and
they interact with. This intuitive perception agendas but they channel their ego needs
is what makes them spot corporate talent and self-interest away from themselves,
even on soccer fields and take decisions to into the larger goal of building their dreams
gamble their monies on dreams which earn and institutions.
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This piece is not about Friedrich but also of exposure to better knowledge
Nietzsche’s philosophy. “Ubermansch” is an and best practices through the world boom
icon of eclectic ideology. Contemporary in communications. The information
corporate management literature is replete technology revolution equips each new
with traces of iconic men and women who generation of managers with new cutting-
reflect these ubermanschque capabilities. edge tools.
These supermen are flesh and bone human
beings like you and me. They are not The Neitchesque “super race” will
anything resembling the super characters therefore not be born tomorrow. It is in the
out of science fiction movies representing making every day and each one of us is
such a futuristic super race. part of a chain in the evolutionary process
of the creation of the “corporate
Such a corporate super race is not going to
ubermensch”. Therefore, each one of us is
be born tomorrow. It will certainly not have
cast with a philological duty for the
an oversized brain or communicate in
development of the next superior
synthetic sounds resembling cacophonic
generation of managers under us.
high-end electronic musical notes. The
question has always been: how do we
multiply this race? “Ubermensch” will look exactly like us and
also sound like us. It is through what they
The reality is that each generation of can deliver in terms of quality, quantity,
professional managers coaches the next speed and creativity that their corporate
generation. The next generation, therefore, footprints will be differentiated. Silently,
has the benefit not only of their coaching we are the makers of “ubermensch”.
NHRD Apr09 - 3.p65 108 5/2/2009, 3:26 PM

THE ITC LEADERSHIP PARADIGM: VISION,
VALUES & VITALITY
ANAND NAYAK and L. PRABHAKAR
Abstract
This article recounts the story of one of India’s leading organizations that has evolved over
close to ten decades from ‘strength to strength’. Leadership at ITC has been focused on
increasing the organization’s longevity and enhancing its wealth generating capacity.
Moreover, ITC’s leadership has been cognizant of the fact that society constitutes an important
stakeholder of the enterprise and therefore contribution to society is seen as one of the primary
goals of the organization.
About the Author

Anand Nayak, Head of Human Resource Development for ITC,
has been with ITC for 35 years. He has handled senior HR
assignments in the Company’s various divisions. He is also
responsible for overall supervision of ITC’s Social Development
Initiatives. He is a post-graduate in Personnel Management and
Industrial Relations from XLRI, Jamshedpur. He is also a Director
on the Board of ITC Infotech.
L Prabhakar, Corporate Human Resources Manager, has been
with ITC for over 14 years. Prior to moving to Corporate, he has
worked in different divisions of ITC. A post-graduate in Personnel
Management and Industrial Relations from XLRI, Jamshedpur,
Prabhakar has 21 years of experience in HR.
ITC will complete a century of its existence and practice, whilst leveraging the power
in 2010. An organisation that has grown and capability that emerge from their
from strength to strength with the passage adoption. Leadership is expected to create
of each decade, an example of a living and sustain the belief that the extent of
company, inspired and led by generations people engagement has not only a direct
of visionary leaders, the quality of its impact on both the top line and bottom line,
leadership best manifest in the longevity but also has the most direct impact on the
and sustainability of the enterprise. sustainable lifespan of the enterprise.
The challenge for leadership in any living Successive generations of ITC’s leadership
company is multi-dimensional – have, over the decades, been steadfast in
transforming the enterprise through its their desire to increase the longevity and
evolution and growth, whilst being sustainability of the organisation and
strongly anchored in its philosophical enhance its wealth generating capability to
underpinnings, ensuring their application create value for each of its stakeholders on
NHRD Apr09 - 3.p65 109 5/2/2009, 3:26 PM

a sustained basis. ITC’s leadership, over as this, the leadership goes back and asks
the years, has been conscious of the fact that the fundamental question – What is the
society and the nation constitute important purpose of ITC? Over the decades, the core
stakeholders of the enterprise. purpose has remained the same, although
it may have been articulated differently.
This commitment to a larger purpose was
ITC exists primarily to fulfill its potential
best articulated by the Chairman, Mr. YC
and to become as great as it can be in order
Deveshwar, when he addressed the
to pursue its Mission with unflinching zeal.
Annual General Meeting of the
ITC’s Mission is ‘to enhance the wealth
shareholders of the company in 2006 –
generating capability of the enterprise,
“The potential of an enterprise for delivering superior shareholder value and
wealth creation is set apart by the creating value for society’.
distinctive amalgam of its Vision,
Flowing from this purpose of its existence
Values and Vitality. It represents a mix
is ITC’s Vision - a compelling Vision that
of constancy and change; of a timeless
creates and forges corporate identity. The
core and constantly evolving strategies
overarching Vision that unifies the
and processes built around the core. The
diversified businesses of ITC is ‘to sustain
effectiveness of the interplay between
ITC’s position as one of India’s most
these complementary elements
valuable corporations through world class
determines the extent to which latent
performance, creating growing value for
potential is realized. The enlargement
the Indian economy, society and the
of enterprise potential therefore
company’s stakeholders’.
requires Vision, Values and Vitality to
be continuously recharged through The Vision imparts a larger purpose and
practice and insight, revalidated for meaning to individual endeavour. It is
relevance and tested for aspirational, unifying and motivational.
appropriateness to the evolving Envisioning a larger societal purpose has
competitive context. It is the role of always been a hallmark of ITC, described
leadership to nurture a unique by the Chairman in the past, as “a
combination of the 3Vs towards commitment beyond the market”. ITC
ensuring that the enterprise sustains articulated its Vision appropriate to the
superior wealth generating capacity in Indian context, tailored around the deep
an environment of escalating rural linkages that characterize ITC’s value
competitive pressures. Such leadership, chain relationships. This compelling Vision
in a multi-business context like that of of enlarging its contribution to Indian
your Company, needs to extend beyond society has powered ITC over the past
the corporate level to the strategic decades.
business units and their constituents. Such a Vision is manifest in multiple forms,
Distributed leadership then engenders significantly reshaping ITC’s profile. The
transformation by enhancing adaptive Vision requires each of ITC’s businesses to
capability and sharpening attain leadership on the strength of
responsiveness to change.” international competitiveness.
Simultaneously, it has driven ITC to also
Vision and Mission consciously contribute to enhancing the
Significant challenges, both external and competitiveness of the larger value chains
internal, call upon the leadership of an beyond its own operations. This broader
enterprise to reflect on the strategy in place commitment has led to the creation of
from time to time. In ITC, at moments such unique business models that synergize
NHRD Apr09 - 3.p65 110 5/2/2009, 3:26 PM

long-term shareholder value enhancement suppliers, associates, employees,
with fulfillment of a larger societal investors, Government and society. It
purpose. will harmonise their diverse needs and
aspirations to achieve the greatest
It has expanded corporate consciousness
common good and equity.
in the practice of trusteeship to ensure
sustainable wealth creation through Thus ITC has embraced an extended
contribution to the ‘Triple Bottom Line’. role of trusteeship that reaches beyond
Towards this end, ITC has a clearly the assets reflected in the balance sheet
articulated Vision for sustainable to encompass societal assets. For the
development encompassing economic, leadership and employees at ITC,
social and environmental capital. The exploring the ramifications of managing
leadership participates in the cascading of an entity, which is alive, with the intent
this Vision and helps in translating it into of handing it over to their successors in
meaningful and challenging goals and better health than when they received
objectives. Progress on these goals and it, is a challenge on the one hand, but
objectives on each of the three dimensions also something that is deeply gratifying.
of economic, social and environmental
capital is audited by internal and external · Nation Orientation
auditors and then reported to stakeholders The defining trait of ITC, is its deeply
through the Quarterly Results, Annual ‘Indian’ character that aligns corporate
Report and also the Sustainability Report strategy to national priorities. Such a
published as per GRI Guidelines. It is this character flows from the Indianness of
superordinate purpose of creating growing its soul rather than the origin of its
value for Indian society that has inspired capital. As a premier ‘Indian’ enterprise,
ITC’s human resource and aligned their ITC consciously engages across the
collective endeavor by providing unity of value chains towards maximising
purpose across the organisation. benefit for Indian society. Such a
combination of Values determines
Values choice of corporate strategy, orients
Values refer to the institutional standards such strategy in favour of Indian value
of behaviour that strengthen commitment chains wherever feasible, and engages
to the Vision, and guide strategy the organisation willingly in
formulation and purposive action. The core confronting the larger societal
Values of ITC are shaped around the belief challenges of inclusive and sustainable
that enterprises exist to serve society. In growth. ITC’s abiding commitment to
terms of this belief, profit is a means rather society provides depth of moral content
than an end in itself, compensation to and infuses energy across the
owners of capital linked to the effectiveness enterprise, thus elevating collective
of contribution to society and the essential corporate effort to the fervour of a
ingredient to sustain such enlarged societal mission for the ultimate benefit of all
contribution. stakeholders.
It is pertinent to highlight two unique This over-arching Vision of the
dimensions of ITC’s Group Philosophy. company and a stated philosophy is
expressively captured in its corporate
· Trusteeship positioning statement: ‘Enduring
ITC will act as a trustee for all its Value. For the nation. For the
stakeholders – consumers, dealers, shareholder.’
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The corporate campaigns over the years required tremendous courage and
have also reflected this ethos – conviction to adopt a strategy, which
seemingly was not in sync with the thought
o ‘Let’s put India first’;
process of sticking to the knitting. What
o ‘No stops for India, No stops for ITC’; emerged was a ‘three-horizon growth
strategy’ –
o ‘ITC – Working for you, Working for
India’ • Horizon 1 - Defend and expand current
products, markets and capabilities and
Vitality maintain leadership status
A compelling Vision and strong Values by
• Horizon 2 - Blend skills and
themselves could not have radically
competencies residing in different
transformed ITC without the Vitality that
businesses to create new engines of
enables robust strategy formulation and
growth
world-class strategy execution. Vitality in
ITC is manifest in many ways including • Horizon 3 - Create new capabilities for
strengthening its competitive capability, viable businesses in the future
the deepening of its consumer insight, Rationalizing the business portfolio posed
breakthrough innovations in products and a formidable challenge of enabling the
processes, the ability to rapidly absorb various businesses make the transition
knowledge and harness technology, the from competing in a relatively protected
widening bandwidth of distributed environment to winning in an intensely
leadership, a growing nimbleness to competitive and rapidly globalizing
proactively manage change and the ability market on the strength of superior value
to adapt continuously to leverage market propositions.
opportunities.
Responding to this challenge meant
The amalgam of Vision, Values and Vitality engineering a paradigm shift in the
is best demonstrated in the strategies of corporate mindset. The entire organisation
growth, development and governance. had to be realigned to a new focus, namely
acquiring international competitiveness in
Growth Strategy cost and quality in each of ITC’s businesses.
When the present Chairman, Mr. Such realignment was given shape to,
Y.C.Deveshwar, took over the reins of the through significant investments in
Company in 1996, it was a time when the technology, processes, innovation and
winds of liberalization and globalization brands; and crafting a strategy of
were driving the expectations of organisation based on the governance
shareholders. It would have been tempting principle of distributed leadership to
for many an organisation to jump onto the unleash the entrepreneurial energies of
bandwagon and look at the short-term to ITC’s high quality human resource.
maximize returns. Under the leadership of
Mr. Deveshwar, however, management Strategy of Organisation
opted to take the road less travelled and A strategy of organisation was put in place
made the more difficult strategy choice of that has enabled ITC to ‘focus’ and
creating multiple drivers of growth, ‘diversify’ rather than having to exercise a
leveraging opportunities in the emerging choice between ‘focus’ or ‘diversify’. The
Indian economy that best matched proven underlying principle of creating new
internal capabilities. It also meant avenues for growth by blending skills and
rationalizing the business portfolio. It capabilities drawn from different parts of
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the ITC Group, has in turn spawned newer • A paradigm shift from ‘How can I
competencies, thereby imparting a control’ to ‘How can I add value?’
multiplier effect to ITC’s growth strategies.
• Not becoming the apex of a pyramid
The challenge, therefore, has been to ensure but a Strategic Centre
focus in each business whilst facilitating
• How each business can derive
integration at the appropriate level to
additional value from being part of the
harness Group synergy. Governance was
ITC Group
identified as a cornerstone to manage the
diversified portfolio. A three-tier • ‘Enabling’ and not ‘controlling’ and
governance structure was put in place, moving from ‘centralization’ to
with well-defined focus. ‘empowerment’
• Strategic Supervision by the Board • Alignment of each business with
corporate objectives through strategic
• Strategic Management by the Corporate
levers of control
Management Committee. This role
essentially focuses on mentoring
Distributed Leadership
businesses, mobilizing group and
external resources, and monitoring A time-tested belief in ITC has been “The
performance best means of growth come from within”.
This is best illustrated by the fact that the
• Executive Management by the Chairman, and most members of the
Divisional CEO and Divisional Corporate Management Committee and
Management Committees Chief Executives of different businesses
started their professional careers with ITC.
This governance structure has enabled the
company to pursue new avenues of growth The focus on quality recruitment and the
without diluting the focus on its existing subsequent tiered approach to leadership
lines of business. The emphasis on and management development has helped
distributed leadership facilitates a build the leadership pipeline. Whilst these
decentralized strategy of organisation that interventions facilitate the process, it is
enables the executive management of each ITC’s belief that leadership development
business to relentlessly pursue the task of can neither take place in a vacuum, nor can
attaining international competitiveness business leaders be created in Management
by focusing on its unique skills, Development Centres. ITC believes that
unencumbered by other priorities, but business leaders can grow and enhance
within a framework of effective their capability only in the context of
accountability. actually running a business. The strategy
of organisation that supports a diversified
This strategy of organisation also places top business portfolio provides a unique
management in the unique position of mechanism to ‘incubate’ and grow
being able to assume the character of a distributed leadership. This enables
holding company with the mindset of a teaching and learning interactively and
venture capitalist, mentoring existing instinctively, wherein leaders are
businesses and engaging in strategic encouraged to process what they have
supervision of the various businesses. learnt against their own experience and
This has also called for Head Office and knowledge.
the Corporate Management Committee to Over the years this strategy has been
refashion their roles to ensure: further fine-tuned, wherein newer
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businesses are ‘incubated’ in established • Is able to govern its own growth and
businesses, not just to ensure the evolution effectively
availability of a talent pool, but also to
ensure the seeding of ITC’s core values in The Integration
every new venture. And, each of the
The integrated strategy of Growth and
businesses are encouraged to sculpt their
Governance on the foundation of Vision
own three-horizon growth strategies,
and Values provides the Vitality for
thereby ensuring several such horizons of
sustained growth.
growth across the organisation. In essence,
this approach looks at leadership not as a If one were to reflect on what leaders at
position, but as a process of inclusive, the helm did to transform the organisation
collective and inter-dependent decision during their respective tenures, four key
making aligned to the super-ordinate goal. aspects emerge:-
It is this approach that has enabled ITC to
• They go to extraordinary lengths for
demonstrate a high degree of resilience and
causes they believe in, for the values
enabled it to deal effectively with moments
that the organisation stands for. They
of turbulence.
make the transformation personal,
In a recent interview, when asked on what relentlessly and openly engaging
kind of succession planning process he has others, and work towards highlighting
put in place, Mr. Y.C. Deveshwar said: successes as they emerge, for others to
gain belief.
“At ITC, each business has a Chief
Executive. So in terms of opportunity, • They demonstrate their commitment to
there is lots of it. What better succession the transformation by being consistent
planning can there be than people and resilient about their goals and
running their own businesses? In other passionately encouraging stakeholders
companies there is only one Chief to support the same.
Executive and unless you become a
• They build a strong and committed top
Chief Executive, you cannot run your
team, and in the process they take tough
own business. In my own company,
decisions about who has the ability and
there are so many people getting
motivation to make the journey.
experience as Chief Executives”
A key success factor has been the charter • They relentlessly pursue the impact of
based on which potential leadership is their goals and strategies and roll up
identified and developed in ITC across their sleeves by getting personally
different levels. The process focuses on the involved when significant financial and
demonstration of adherence to the symbolic value is at stake.
‘abiding’ factors. And, these ‘abiding’
The true test of ITC’s leadership paradigm
factors in turn ensure that the organisation:
would be when the next generation of
• Is sensitive to the environment, which leadership demonstrates its ability to
sustains the organization’s ability to preserve the core values and purpose with
learn and adapt the same gusto and commitment, whilst
• Is able to build a community and adapting business strategies and operating
persona for itself practices to a changing world. It is this
• Is aware of its ecology and is able to challenge of ‘preserving the core and yet
build constructive relationships with stimulating progress’ that will inspire and
other entities, within and outside itself align future generations of ITC.
NHRD Apr09 - 3.p65 114 5/2/2009, 3:26 PM

As Mr. Y.C. Deveshwar passionately experience. ITC is indeed privileged to
articulated in one of his addresses at the be able to make a difference, and be
Annual General Meeting – recognized for the contribution it
makes. Our abiding Vision, the strength
“To be able to stand tall amidst of our outstanding human capital, and
adversity, to live your convictions and our commitment to creating enduring
know that your actions and beliefs have value will continue to inspire us as we
transformed the lives of millions, is at strive to achieve even greater success
once a humbling and enriching in the future”
NHRD Apr09 - 3.p65 115 5/2/2009, 3:26 PM

DIMENSIONS OF LEADERSHIP
VIVEK PATWARDHAN
Abstract
Successful leaders are not just born, but can also be made - this is the very foundation of this
article. It further explores possibilities of learning leadership, and how a defining moment can
kick-start a leadership journey. It takes a fair mix of a compelling vision, continuous focus on
reality- in terms of numbers and hard facts, ethics which means being driven by principles and
not by expediencies, courage- doing what we believe is the right thing to do and the ability to
influence forms the bedrock of successful leadership.
About the Author
Vivek Patwardhan, Vice President – HR of Asian Paints heads the

HR function for the organization and its group companies including
its international subsidiaries in 22 countries. He was appointed as
‘TISCO chair professor of Industrial Relations’ at Tata Institute of
Social Sciences, Mumbai 2006-07. Vivek has published several
articles on various subjects which include positive psychology,
industrial relations, travelogues, and pen sketches. He has edited a
book [“Kunchale un Kalam”], meaning paintbrush and pen. Vivek
Patwardhan is a science graduate from Bombay University and he read for his Master’s
degree in Labour Welfare at Bombay Labour Institute, now called MILS.
Leadership is a subject of interest to people world history. We can make quite an

of all ages and walk. Many books have impact on the world around us.
been written on the subject of leadership.
Most of these will make you feel that LEADERSHIP CAN BE LEARNT
leadership is what Nehru, Gandhi, So the first point I want to make is that
Kennedy and Mandela practised; that you leadership can be learnt. Recently I read a
can be called a leader if you have changed book in Marathi called ‘Kharkhure Idols’,
the course of events; and that great leaders meaning ‘The Real Idols’, which covers
are born. This is only half true. These books stories of many persons not in the limelight,
do not tell you that leaders can be made. I yet who have made an impact in the world
am not saying this but research in HR says around them. Have you heard of Naseema
it. And this is immensely reassuring. This Hurjuk? Naseema was a simple next door
means that it is possible for you and me to girl till she was about 15 or so. Then a
learn leadership and be good leaders. We tragedy struck. She was paralysed and had
can create great organisations; we can to move about in a wheel chair. This girl
inspire a dozen people around us to be who loved to dance, now had to be literally
good leaders. It is not necessary that all carried by others. But she was encouraged
leaders have to leave an indelible mark on by another paraplegic who was working
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for others. She participated in the mindwheel entrepreneurial. But then they are very few
games in London. By now, something in number, though more visible. Vision, I
inside Naseema had changed. She decided am told, should be defined only in terms
that she had to be independent and cannot of intangibles. We unfortunately limit this
be a burden to the family and the society. to our professional life. We tend to think
what kind of department I would like to
Today, Naseema runs an NGO called
create or what kind of institution I would
‘Helpers of the Handicapped’ that has
like to create. How many of us pause to
provided livelihood, independence and
think what kind of family or culture at
enormous pride to more than 550 disabled
home I would like to create? I am sure that
persons. She has so far been felicitated and
the number will not be large. The stark
given 32 awards. How did this happen?
irony is that it matters to us more than
Did Naseema have a big target in mind?
anything else.
It all began with a small determination
and effort. As she tasted success, she
Be that as it may. Research is increasingly
became increasingly ambitious. This
showing us a way of defining and attaining
seems to be the pattern in the case of many a
the intangible targets. In his recent book
leader. A defining moment kick-starts the
‘The HR value proposition’, Dr Brockbank
leadership journey.
discusses a step-by-step process of
VISION envisioning the desired culture within and
creating it. The book talks about a process
The transition from a common person to a in which a large number of people can be
leader is often gradual. There is a good involved in defining and shaping culture.
amount of building up. The build-up is GE says their statement of culture is speed,
of ambition, of ability to see new simplicity and self-confidence. Disney wants
opportunities and of credibility. My us to see their organisation as ‘Friendly’.
understanding is that the process of Deutsche Bank prides in calling itself a
developing a vision itself is fuelled by ‘disciplined risk-taking organization’. This is
passion or what one feels strongly about. how they wish to give theirs a persona. If
So, Naseema Hurjuk felt that something this is not vision, what is it?
must be done about the plight of disabled
people. She began in a small way and
There are others who follow what they call
created eventually a big enough way to
the ‘Obituary Exercise’. In this exercise you
help 550 disabled persons. We seem to
write down how you would like your
think that vision is something that happens
obituary to be written. This exercise brings
to us, like enlightenment. I have always
many questions to our mind. What is it that
felt that biographers tend to be unrealistic
I would like to achieve? And remembered
in showering praise and attributing
for? You are never remembered only for
purpose to their subjects. And that gives
your achievements. You are also
us such wrong notions. Developing vision
remembered because you stand for
is not akin to enlightenment, it is more
something and you do not stand for some
akin to building a structure; you build it
other things. These are what we call values.
brick by brick.
This summation of your dreams about
If we read biographies of Dhirubhai or yourself as a champion of certain values
Rahul Bajaj, it becomes clear that they too and your goals is what vision is. When we
have followed this route. There are, of talk of vision I am tempted to quote Helen
course, those who are exceptionally Keller. You will recall that Helen was a
gifted and they are outstandingly blind person. She asked ‘Is there anything
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worse than being blind?’ And she answered Koestenbaum, a great philosopher and
‘Yes, a person with sight and no vision.’ thinker, says that leaders operate in four
Is leadership individual in nature or is it a dimensions – The first is vision, which we
collective process? Many of us think “I am have discussed. The others are reality,
the leader, and these are some of my ethics and courage. These are four forms
followers.” We often tend to think of of perceiving that are required to deliver
leadership as an individual performance. meaningful result. A leader envisions, but
War films, for instance, glorify this angle the realist in him tells him the ‘as is’
of individual leadership. All this goes to situation and the distance to be travelled
shape the image of a leader in our mind as to realise the vision. He must show a great
a passion-charged individual who has been understanding of ethical behaviour. Many
able to direct a group of followers. There corporate managers fall when they do not
is no denial that there are situations in realise that their short cuts to glory are
which individual performance has a place. damaging to both themselves as well as the
organization. And he requires courage and
Trouble starts when you enter industry and conviction to carry his team and influence
carry that picture in your mind. In industry, people around him.
the nature of process is more often
collective and not really individual.
Decisions must be made after allowing an REALITY
elaborate process of consultation, an The ‘reality’ part looks at hard facts,
opportunity to influence others and finally numbers etc. It is in that sense exactly
by gaining the ‘buy-in’ of the majority. opposite of vision. A realist knows what
When my department works on any policy, can be achieved, and has no illusions, is not
many employees are spoken to, many speculative about anything.
managers are consulted and their views are
incorporated on the proposal before it is Asian Paints was established in 1942. All
announced as a policy. This is essential the major paint companies then had foreign
because the best decision is the best collaboration. They marketed their
implemented decision. But a newcomer to products in cities neglecting smaller towns
industry discovers that the flamboyance of and villages. The leaders at Asian Paints
‘I say and they will follow’ is non-existent. realised that there was a big opportunity
for business by moving to that neglected
We must reflect therefore as to how we area. So, Asian Paints built a strong
understand leadership. For it has a distribution network to reach there. In 25
profound effect on how we practise it. years, in 1967, the competitors realised that
Martin Wilcox has put it crisply, ‘If you they had lost the numero uno status to Asian
view leadership in the conventional way, Paints. Nobody has been able to reclaim it
as a set of characteristics, or behaviours, from us so far. All this appears simple and
that you need in order to influence people obvious in retrospect, but it takes a realistic
to follow you, then you will probably focus leader to make such a decision and to break
on your own individual resources when away from the mould.
confronted with an all challenge. If,
however, you think leadership as a This game of having a vision and also
collective process, one that individuals facing the reality actually tears leaders
with particular skills can facilitate, but that between two extremes. It is like keeping
must fundamentally involve many one eye on telescope and the other on
members of the organization then you may microscope. Many a great leaders have lost
well be able to access far greater resources.’ their jobs because they bungled up this
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aspect. Hitler is one of them. You have to he is going to achieve the result, he must
read a book called ‘Until the Final Hour’ have a clear view about how he is going to
by Hitler’s personal secretary Traudle deal with people, whether they are his
Junge to understand the extent to which followers or customers or even members
leaders can lose sight of reality. Some of public.
people believe that when Indiraji declared
Our factory at Bhandup had a major
elections in 1977, two years after
accident in which the entire building
declaration of emergency, in which she lost
housing paint-making facility was lost to
so hopelessly, she had misjudged reality.
fire. About 150 workmen used to work
We are able to perceive the reality if we there. There was no question of giving them
keep our minds open. And that is not easy any job as the factory itself did not exist. We
when you taste success; because success applied for permission to retrench from the
leads to forming hard, unchangeable views Government and got it. It would have
on ‘What works here’. Then we base our fetched a compensation of about a crore of
action on such views irrespective of rupees to those workers. These were dues
changing context. Why does this happen? as payable by law and they could not have
Why do men in leadership positions who asked for anything more. After a discussion
are well educated ignore facts staring at with the workers, our leadership paid a
them? When people ignore the facts it is compensation of five crores. About five
very often not intentional. People have a times the legal dues. In case you would like
deeply ingrained habit of starting with the to verify, this is documented in that year’s
facts they want to believe, and then annual report. Why? Because the leadership
working backwards to find the evidence believed that though separation was
to support them. I have heard a social inevitable, we owed them a better
scientist say that half of the research is compensation; our workers’ hardship had
unreliable for this reason! There is a kind to be mitigated to the extent possible. Our
of carelessness associated with leadership felt that their responsibility
disregarding facts. And this carelessness is towards workmen extends beyond what is
directed often at increasing one’s personal defined by law. The response was ethical in
prestige, at proving that he knew best. This the sense we made a choice of what was the
then is the problem to overcome - the sheer right thing for us to do.
voracity of our appetite for recognition and
self esteem. When Mumbai had torrential rains on 26th
July, 2005, dozens of families were
ETHICS distributing eatables, tea, and coffee to the
stranded people. Mind you, they were not
The third dimension is ‘ethics’. This
selling it. It is believed that in spite of being
dimension is one about which many would
in a completely disorganized state,
wax eloquent but very few realise its true
leadership rose in pockets everywhere in
meaning. When we say we are ethical, we
Mumbai to handle the crisis. Imagine a
are talking about being driven by
large number of people making the same
principles, not by expediencies.
decision: they felt they ought to be helping
When we talk of ethics the immediate people in distress and not making money.
thought is that of corruption. These days Such incidents show the true character of
people also remember the Enron case. But the people. It was a correct ethical response
ethics should not only tell us what not to to an unusual situation. This would not
do, it should also tell what to do. In that have been possible without a leadership at
sense, a leader must have a view about how work, however invisible it may be.
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COURAGE than Mahatma Gandhi. He did what he
The fourth dimension is that of ‘courage.’ said. And he said what he thought.
Aristotle believed that courage is the first Complete congruence! The knowing-doing
of the human virtues because it makes the gap which is also described as the
others possible. Script writers usually rely distinction between espoused and enacted
heavily on this aspect to create dramatic values is what sets an authentic leader
situations in films. Amitabh Bachchan apart from those otherwise.
perhaps symbolizes this best in films like
Dr. Zakir Hussain, our former illustrious
Zanjeer. Jaya Bhaduri is an eyewitness to
President was distributing prizes to school
an accident in which school boys die, but
children when his peon rushed to him. The
refuses to identify the culprit. Remember
peon whispered to Dr. Zakir Hussain an
the scene when an angry Amitabh drags
urgent message. Dr Zakir Hussain’s
her to the morgue, shows her dead bodies
daughter, perhaps of the age of the
of those children and then tells her to go
schoolgirls in front of him, was ailing
away? She turns up at the identification
and had just passed away. Dr. Zakir
parade and identifies the criminal. It is not
Hussain continued to give away presents
at all an uncommon tendency to run away
till that job was done. ‘The children would
from police. And it is also not at all an
have been disappointed if I were to walk
uncommon tendency on the part of police
away’ he said. Biographer of Dr. Hussain
to give up. In spite of that, acts such as the
records that for several mornings thereafter
one in the film happen in actual life too.
the housekeeper used to discover very wet
Such acts like the one in the film happen pillow covers.
because we believe that’s the right thing to
do. We have to recognize that there are So this is what authenticity is all about. You
many situations in which we can turn the accept yourself as you are. And you declare
proverbial Nelson’s eye to events. It is such to the world what you are. And this
contrasting situations that make you requires self awareness. Awareness comes
understand that we are what we have out of reflection; reflecting on one’s own
chosen to be from the depth of our being. experiences. If we want to be a good leader,
We are a product of our will. we must develop this habit of reflection.
This also means that you reflect on your

INFLUENCE
roles. Each one of us plays multiple roles.
A leader is constantly under watch by With changing times and growing age
people with whom he works. They also these roles change. Think of our parents’
notice the lack of coherence in knowing and expectations from us when they are in their
doing. I would now like to talk about a forties and we are in the teens. Think of
leader’s ability to influence. Much has been their expectations from us when we are in
written about charisma, about leader’s our forties and they are in their seventies.
oratory skills. There are many writers who This changing expectation is felt in our
think that Mahatma Gandhi was neither a professional roles too. Thinking about our
charismatic leader, nor a great orator. But multiple roles makes us more effective in
his influence over people could not be those roles. It helps us practise the values
called anything but exceptional. His consistently in those roles. And that makes
influence came from his vision, ethics, us authentic.
courage and his authenticity. Today, the
world is thinking in terms of ‘authenticity’. Leadership is now being viewed as a
There is no better example of authenticity process. This is not mechanical but it is very
NHRD Apr09 - 3.p65 120 5/2/2009, 3:26 PM

organic. And that is precisely the reason Naseema, Chandrashekhar, and Chavan
why coaching helps. Knowing oneself, decided to take charge of their lives.
constantly increasing self awareness, They created for themselves a purpose
espousing and practising values, and to live. They held themselves accountable
moving courageously towards the goal are for making their dream come true.
important steps in that process. But it is a Nobody imposed it on them; it was
bit like swimming. Knowing the steps is their choice.
just not adequate, mastering the process is
important. Some people realised what they missed in
life only when they had a near death
Nobody asked Naseema to work for the experience. There are a number of stories
disabled, but she did. Nobody asked of cancer patients or heart patients who
Chandrashekhar to transform the way discovered a purpose to live. We need not
Thane city looks, nobody asked him to wait for a visit to the hospital to discover
repeat that splendid transformational our purpose! Koestenbaum says it well.
performance in Nagpur. Nobody asked ‘Unless the distant goals of meaning,
Dr. Madhav Chavan to return to India and greatness and destiny are addressed, we
launch the NGO ‘Pratham’ when he had can’t make an intelligent decision about
everything going for him in USA. what to do tomorrow morning’.
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LEADERSHIP - THE EXPERIENCE OF THOSE WE
CHOOSE TO LEAD
SATISH PRADHAN
Abstract
This article brings forth a critical analysis of leadership and the requirements of a leader. It
begins by stating that some aspects of leadership are emerging while others are set in stone. The
article outlines that a good leader must be honest, accountable and authentic. The leader must
be a visionary but at the same time must have foresight and should not lead people by fear.
Lastly, a leader is always expected to deliver. There is a thin line to tread for leaders and they
must maintain the balance while walking the tightrope of business.
About the Author

Satish Pradhan is the Executive Vice-President, Group Human
Resources of the Tata Group. Prior to this he was with ICI Plc.
London. During the last 26 years, He has worked with SAIL, CMC,
ICI India, Brooke Bond Lipton, in various capacities in HR areas.
He is on the Board of Tata Institute of Social Sciences and member
of the Technical Advisory Committee on HR of RBI.
Leadership has many facets and is important then perhaps they have been
probably the most written about subject. hitherto. We judge ourselves by our
Equally, it is a subject on which we all have intentions, but we judge others by their
an opinion. Looking at aspects of behaviour. Leadership is experienced and
leadership as I have experienced them over assessed by others through the behaviour
the years, and their relevance to the of the leader. The only way our intent can
emerging times, has thrown up several be experienced by others is through our
interesting thoughts. Drawing on these words, deeds and thoughts. Working on
observations of leaders and emerging this premise, lets look at some of the
leaders over the past years across behaviour that leaders demonstrate, which
geographies and businesses, I attempt to seem to be effective and powerful.
distil some insights for us to ponder. “Authenticity”; “integrity of thought, word
As we walk into the emerging realities that and action”, are expressions commonly
are taking shape around us there is a encountered as requirements from leaders.
paradoxical sense of the enduring The coherence, alignment, and authenticity
relevance of between our thinking as we express it, the
When leaders speak some of the words we speak, and what we actually end
people watch their feet characteristics up doing is stunningly clear to the outsider.
of leadership The economic down turn triggered in the
and an emerging set of characteristics minds of many by the greedy and
which seem to become increasingly more unscrupulous acts of “fat cat” leaders who
NHRD Apr09 - 3.p65 122 5/2/2009, 3:26 PM

pay themselves billions in salary and not move my head” - and the actions to
bonus, has lead to the loss of jobs and back that up – a willingness to pay a
personal crisis of many people and is a personal price for the super ordinate goal
backdrop in which this particular aspect you urge others to follow has more effect
assumes great centrality. than anything else. It is powerful when
leaders demonstrate that the super
The single most important requirement
ordinate cause which they are urging
from leaders is candour. Being trustworthy
others to give their “all” to is something
demands that people
which they themselves are willing to give
Tall it like it is who follow can be
up some personal benefit for. This becomes
confident that you will
evident and has an inspiring effect even in
give them the truth. Almost like a
day-to-day matters, when for example, a
minimum threshold requirement, this is
cost cutting exercise is lead by the leader
also the most vulnerable aspect of
herself – taking a cut in perquisites or
leadership. The dilemmas that a leader
visible elements like economy class travel.
faces in reflecting a realistic sense of the
People need to experience a cause which
outside world to the organisation and
is larger than “you” on which you and they
creating hope and energy in engaging the
can hang their commitment and for which
organisation in difficult and challenging
you are seen making some sacrifices at a
tasks, highlights this. The gloom in the
personal level.
outlook and search for a “bottom” from
where the journey to recovery can begin
People need the leaders to paint an exciting
makes this a challenge. This permeates
picture of the future but equally don’t want
through to giving candid and even-handed
a complete gift wrapped package that they
feedback both at business and personal
can’t add themselves too! There is a tight
levels.
rope walk between the visualisation of the
People want the leader to take ownership contours, coordinates and hues of an
of and accountability for the agenda, the inspiring enough future and giving people
means, the the space to add their own mountains and
Stand up and be counted choices and rivers or
m o s t Tell me a story that I can even small
importantly the people. The need for write myself in as one of flowers and
experiencing “felt fair” and equitable the heroes / heroines blades of
leadership, living up to commitments are grass to the
important. Leadership behaviour and picture to
holding oneself accountable especially in create a powerful shared vision of a
the “bad times” heightens the expectations desirable future that has a compelling pull
here. People also want their leaders to for the people. “I want to understand how
support and bat for them when they are I and what I do fits into the big picture”.
“right”. Keeping promises are as important “Think with me”; “include me in your
as demanding promises and their delivery. thinking through this” are refrains one
When the Chairman of Tata Motors, keeps hearing. When a fledgling Tata
Mr. Ratan Tata promises to give the world Company called CRL wanted to develop a
a small car at Rs. 1 lakh and keeps that super computer with a 120 teraflops rating
promise, it is expected that he will do so! which would make it the number 4
Behaviour like the statement made by him supercomputer in the world, an Irish friend
–“if you put a gun to my head, either move of mine said “I wouldn’t start from here if
the gun or pull the trigger – because I will you want to go there!” Leaders need to help
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people suspend their “disbelief” and the The heart of leadership is the heart of the
sense of being overwhelmed by the people you lead. When Napoleon said “let
constraints of the present to allow the them hate as long as they
potency of a powerful vision of the future I matter fear” he stated the recipe for
to wash over their souls. This needs failure. Followers have choice
working through the journey to arrive at – they can comply based on
the vision together. authority, hierarchy, fear, greed and so on;
but they will “commit” to what they see as
A related dimension to visioning that we leadership. Grace and humility are muses
keep coming across is about being able to to the gods of business smarts and thinking
“see around corners”. Prescience and fore prowess. This becomes essential not only
thought are experienced with great impact in dealing with people but in nurturing the
not merely in envisioning the future but in strengths and developing the leaders
folding the future into the thinking for herself. When dealing with people, giving
today. Framing issues and focus with “face” along with the credit and
a thoughtfulness and wisdom ensures recognition when due are essential. People
that the people want to be reinforced when they do good
Framing the issue are persistent in things and built on that rather than be only
pursuing the upbraided for shortcomings. There is also
direction and drivers that build tomorrow a palpable need for help in doing their
while delivering today’s results. work when they need help. This is not to
Judgement in the face of the unknown, be confused with taking over their role,
given the increasing volatility and interference or micro management and if
uncertainties that confront most of us, has not watched can end up with other people’s
become an even more critical need. The use work being done on your desk!
of questions and enabling the people to
People expect the leader to deliver.
work out for themselves the way forward
Whether it is the Katrina disaster
rather than giving a solution, often leaves
management or the economic crisis or a
people with more. Making patterns –
business situation, leaders need to deliver.
connecting apparently unconnected things
Demanding and setting high expectations
to bring new insight along with the ability
and standards for
to amplify “weak signals” emerge as a
winning combination. Bringing to bear Getting things done themselves and
others, attending
both width of perspective and depth,
to issues with
detail and rigour build enduring and
rigour and depth, demonstrating passion
institutionalised approaches and processes
and zeal for quality of outcomes
as well as capability in people to handle
distinguish the ones who people want to
complexity and the unknown more
respect and follow. Being tough with
effectively. It is in this space the ability to
yourself is a precondition to credibly being
manage innovation emerges as a great
tough with others. And believe me being
challenge of leadership, especially today.
tough is needed and will be needed even
One of my colleagues describing a leader
more in the future!
said “it is amazing how he can de-clutter a
conversation or an issue! It is really very The above is neither exhaustive nor
helpful” – the ability to simplify complex comprehensive but a selection of aspects
issues is how effective leadership can bring that seems to jump out as important in the
their width and sagacity to bear on a subject light of the world we are in and walking
as well as meet the needs of the people. into. As with many other things, what we
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are hearing from anecdotal and research innovation with “ideation”. We confuse
studies that in leadership too – what is “popularity” with leadership; “telling
done and how it is done are both people off” with candid and even-handed
important. Neither is it acceptable to feedback; “nitpicking” with depth and
people that detail; “check with me” or the other
Who tells the emperor the leader is a extreme of abdication with delegation. We
that he has no clothes “ w a r m could also be vulnerable to the fashion
leadership? cuddly teddy industry in the leadership business and get
bear” nor that carried away by the latest “fashion” or fad
she rides over the blood and bones of because our peers or other are doing the
people towards a very laudable objective. same. We possibly do occasionally have a
The balance has to be calibrated from propensity to revert to our earlier roles and
feedback and listening to voice of the stop learning and re-inventing ourselves.
customers of our leadership behaviour.
There is the flip side too – what doesn’t While this is the potential minefield, most
work too well. Many of us occasionally blur leaders recognise and build reality check
the distinction between the appearances mechanisms to avoid the traps of delusions
and appurtenances of grandeur, megalomania and other such
of leadership with leadership pathologies – but then these are
The Minefield
leadership itself. occupational hazards for those of us who
We may find chose to lead. At the end of the day there is
ourselves preoccupied with trying to only one rule – how you behave is the only
appear to be “leaders” rather than actually tangible connecting mechanism between
being leaders. We, perhaps, at times mix you and the people you lead and the way
up the leadership requirement to manage to hell is paved with good intentions.
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ALL ABOARD! - THE LEADERSHIP JOURNEY AT HAL
SANJEEV SAHI
Abstract
Human capital is the tool through which strategy manifests itself in an organization.
A dedicated workforce, fueled with energy can enable the organization to realize ambitious
goals and climb the ladder of success. This article traces the leadership story of India's
largest Defence Public Sector organization, which developed a comprehensive Leadership
Capability Development model across the organization. The model served as a key enabler
that channelized people energy in the right direction and led to enhanced growth
in the organization.
About the Author

Sanjeev Sahi is Director, Human Resources and a member of the
Board of Directors – HAL. He completed his Masters in Management
Studies in Engineering and Technology from the prestigious Birla
Institute of Technology and Science, Pilani (BITS) in 1977. Since then,
he has gained extensive experience in leading Indian public sector
undertakings such as steel major SAIL, power majors NTPC and
NJPC, before joining HAL in 1995. In addition, he holds high level
positions in the apex body of public sector undertakings in India -
Standing Conference of public enterprises - SCOPE. He leads HAL’s
people strategy and has been driving leading-edge HR initiatives, with a focus on
leadership development, improved productivity and global competitiveness.
If you observe the runway during a takeoff HAL has developed as an integrated
after sunset, you see the runway lights aerospace organization and has spread its
prominently at first and then as a rapidly wings to cover various activities in the
moving blur of dots as the aircraft lifts off. fields of avionics, design, development,
Hindustan Aeronautics Limited (HAL), manufacture and maintenance of advanced
India’s largest defence public sector fighters, piston and jet engine trainers,
undertaking, is passing through this “rapid helicopters and associated aero-engines.
blur” as it takes off towards its destination. Opportunities of a burgeoning order book
Having gained Navratna status in 2007, we are complemented by vast experience in
have now set course to become a leading design, development and production,
global aerospace organization. Ambitious? robust infrastructure, a culture of integrity
Certainly! This ambition is our fuel. and respect for people.
In the same way that the wheels, which

enable the aircraft to move on the ground, Time to strap on the G-Suit
are retracted during takeoff, HAL accords Four years ago, as we introspected on the
due recognition to capabilities which have destination at hand, there was total
taken us thus far on our sojourn since 1942 unanimity that reaching our destination
NHRD Apr09 - 3.p65 126 5/2/2009, 3:26 PM

will require a completely different Practice, our advisors through the
orientation – in terms of structure aligned conceptualization and implementation of
to manage soaring expectations, this journey.
streamlined lean-based processes to steer
our organization and above all, preparing Our Calibrated Leadership Gauge
our crew and passengers for a safe and
The pieces of the jigsaw puzzle confronting
smooth journey. An appropriately capable
us slowly began to fall in place, with
workforce, when provided with the right
competency-based people strategy
infrastructure, will be in a position to
emerging as a foundation. Our first
operate effectively and in a manner that
significant step in this journey was the
will delight customers, hence creating
development of a leadership competency
profitable growth. We recognize that our
model - a homogeneous blend of our vision,
challenge, as custodians of the people
SWOT, success stories within HAL and
strategy at HAL, is to kick start and sustain
relevant inputs from the best in class
this virtuous sequence, and unleash the
organizational competency frameworks.
power of our workforce.
Our competency framework focused on
three broad themes:
Concomitant with rapid ramp-up of our
execution ability to deliver a mammoth a. Building business
order book, is the challenge of managing b. Getting results
the growth imperative. We have
recognized that while top-class execution c. Organizational and individual
is necessary, it is not a sufficient guarantee development
for long-term sustenance of an
The Leadership Competency Model serves as
organization, especially with opening up
a standard for definition/identification of
of the defence sector in India and the
leadership potential and a common
phenomenal global opportunities across
language for communication of leadership
the entire value chain. Our people would
expectations at HAL – irrespective of the
need to make this journey, to reach our
function, level or location that our people
destination…but were we ready as an
are part of. At the role level, we focused on
organization? How were we to proceed?
improving clarity through development of
We had a large pool of technically well-
structured job descriptions and
qualified personnel, but how were we to
competency profiles, across all our
prepare them to lead our transformation?
divisions and departments.
What would be the basis for the individual
and hence organizational capability
development? These were the burning The Flight Announcement - Loud and Clear
questions for which we needed to find The Chairman was convinced about the
answers quickly. The Board of Directors efficacy of competencies and ratified a very
and the Chairman deliberated on the need significant decision – Utilizing leadership
to embrace the leadership agenda and competency proficiency in promotion
reached a consensus that a robust model decisions. The emphasis, however, was
of leadership development was required, clearly on individual-led organizational
to ensure sustainable progress towards our capability development. This bold decision
organizational goals. HAL as an generated significant interest in the
organization with nine R&D Centers was organization about competencies and how
always willing to experiment. We turned the proficiency was to be ascertained. By
to Ernst & Young’s Human Capital this time, we had a structured assessment
NHRD Apr09 - 3.p65 127 5/2/2009, 3:26 PM

HAL
Vision & Mission
Business strategy
Future Capabilities;
Market Place &
Key Success factors Competition
Best
Practices
Leadership Competency Model
Competency Based People Strategy

Career Leadership
Recruitment Performance Training and Reward Management &
Capability
and Selection Management Development Management Succession
Planning Development
BUSINESS RESULTS
mechanism in place, for competency across competencies, levels and locations

mapping. through an e-enabled dashboard. All
participants were mapped into a nine-block
The Leadership Altimeter performance-potential matrix through the
Over a three-year period, we have dashboard.
conducted assessment centres (AC) for We also initiated an e-enabled 360-degree
more than 800 officers across middle and feedback to obtain multi stakeholder inputs
senior-level officers and another structured for development. These initiatives have
process for junior officers. As part of the provided us with specific information on
AC, each participant received individual competencies, which require focused
feedback, structured written reports development, and the extent of gap – both
summarizing the demonstrated at an individual level and an organizational
proficiency levels of the candidate and level. Our team has been renamed from
personalized individual development Personnel and Administration (P&A) to
plans. Results of the AC were analysed Human Resources (HR). This is a strong
NHRD Apr09 - 3.p65 128 5/2/2009, 3:26 PM

indicator of our conviction that our Managing Turbulence
emphasis needed to be on strategic Despite our efforts, we have had our fair
contribution to HAL’s transformation and share of challenges. Communication of
no longer remain pre-occupied with leadership expectations to a predominantly
administrative tasks. technical workforce involved a mix of
Breaking the (Static) Barrier conceptual education and breakdown of
skepticism. Large competency gaps were
Running and communicating this initiative
identified through the ACs, which
in an organization with HAL’s level of
reinforced the urgent need to undertake
complexity and legacy-based elements has
development initiatives. The important
been a mammoth task. It required solid
difference between performance and
support from the Chairman and other
potential needed to be conveyed and
colleagues on the Board, improved
reinforced, as there was an implicit
awareness of our HR team and extensive
assumption that high performers and high
communication at an organizational level.
potentials were the same. When high-
The challenges have been around
performers were presented with data on
generating buy-in, managing
competency gaps, there were challenges in
apprehensions and sustaining momentum.
convincing them about the implications of
We anticipated this and made transparent
the same and associated development
communication a mantra.
imperatives.
The Chairman directly communicated with
all employees at HAL regarding the Step Climb
development initiatives being undertaken
in the organization. Internal assessor Having reached thus far, we now realized
training workshops were conducted for the that now the lateral journey had just begun.
HR team at HAL to increase awareness of We had a good grasp of the competency
the entire transformation taking place and gaps and development needs. We also had
to ensure that the HR team is conceptually certain development initiatives in place,
clear and adept in communicating the with more being launched. There is now a
results of this initiative. case to stitch all these efforts together into
a comprehensive program, which would
In order to ensure the success of the
cater to the leadership imperatives of HAL.
development initiatives and garner
This is when we conceived an organization
support for the same, we used a
wide Leadership Capability Development
combination of formal and informal
Program. This is our attempt to align talent
mechanisms to communicate our
management, career management and
Competency Based Leadership
succession planning.
Development Program. Senior
functionaries from HR travelled We envisage that this program will help
extensively to various locations of HAL us fill the vacuum created due to
and used all possible forums to highlight superannuating critical resources and
the importance of the need to bring about prepare a leadership pipeline to deploy a
this change. We ensured our presence in program-based strategy and improve the
each AC. We had “ice-breaker” discussions overall organization capability index. We
with all participants, to set the expectations will employ a requisite blend of experience,
at the beginning, and detailed feedback at feedback and education-based initiatives
the end of the centre. Transparency and such as coaching, action learning,
openness were maintained while mentoring, shadowing and targeted
conveying reports to the participants. development initiatives in association with
NHRD Apr09 - 3.p65 129 5/2/2009, 3:26 PM

leading management institutions such as Our competency-based leadership
the Indian Institute of Management. We capability development program will be
intend that line managers don the mantle the focal point of our HR initiatives in the
of leading this program for their teams and future. While we have made significant
chalk out development plans for investments in strengthening our people
themselves and their subordinates. Further strategy over the last 3-4 years, we realize
testimony of our commitment to leadership that our leadership journey has just begun.
development is our decision to revise our We are also upgrading our infrastructure
existing functional organization structure through a state-of-the-art Management
and align it to leadership tiers ranging from Academy, which will serve as our in-house
visionary to operational. I strongly believe leadership development playground.
that leaders exist at all levels.
Stretch Goals
Programme-specific Learning Action Learning Projects
Leadership
Competency-based Learning Capability Develop- Coaching
ment
Mentoring Job Rotation
Shadowing
We also see our Leadership Capability corollary of Karma Yoga’s essence – Duty
Development Program as a vital for Duty’s Sake.
instrument to transforming our culture; it
will enable delegation of responsibilities to
Under Mighty Wings – The Power of One
lower levels, breakdown of silos, optimal
utilization of specialists and generalists and Like any organization, we have our
make us agile as an organization. constraints, but to reach our journey, we
will focus on the positives, while
HAL’s complex stakeholder map and the consciously eliminating any stall. I am
impact of every individual’s action reminded of Helen Keller’s famous words[2]
mandate a need to rise above the crass – “Keep your face to the sunshine and you
material considerations, which guide the will not see a shadow”. We recognize the
average transactional relationship between need to be patient, as individual
employer and employee. “Yogah Karmasu development is about assimilation and
Kaushalam” [1] is a message that I intend to introspection. Our journey will have its
drive across this program. This simply pockets of turbulence and we are open to
translates to “Yoga is skill in action”, a dynamic course correction.
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This following short story conveys the “I want to build the most beautiful temple in
impact that the positive attitude of the country,” said the third one with a visionary
individuals can have in changing mindsets gleam.
and leading transformation.
Their jobs were identical but their
Three stone-cutters were engaged in perspectives were different. This visionary
erecting a temple. “What are you doing?” perspective among our workforce will
was the common question posed to all make HAL a temple of modern India[3].
three. Their responses have a simple, yet Individuals who are possessed with this
profound message: visionary zeal and energized by the
prospect of their own holistic development
“I am a poor man. I have to maintain my family.
will be nurtured by HAL’s emphasis on
I am making a living here,” said the first stone-
cutter with a morose face. leadership capability development. This
will lead to the creation of a critical mass
“I work because I want to show that I am of leaders who will supercharge their
the best stone-cutter in the country,” said teams and ensure safe, smooth and timely
the second one with a sense of pride. landing at our destination.
Notes:
(1) - Derived from the Bhagavad Geeta (The Song Divine) – Chapter 2, Verse 50
(2) - Attributed to Helen Keller, inscription in autograph album of Lafayette E. Cornwell, Yonkers, New York.—Walter Fogg, One
Thousand Sayings of History, p. 17 (1929)
(3) - India’s first Prime Minister, Pt. Jawaharlal Nehru, while dedicating the Bhakra Nangal multi-purpose project to India on October
22, 1963, termed these large projects “temples of modern India”.
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THE NEW LEADER
AN EMERGING BUTTERFLY
T.T. SRINATH
Abstract
Modern day organizations are complex entities that are ever evolving. Therefore, managing
them successfully calls for 'extraordinary ingenuity' and requires investment of immense
'human energy'. In such a system, leaders play a critical role and exercise great influence on
the organization's environment. This article presents a leadership framework and explains the
key behaviors that efficient leaders already do or need to exhibit.
About the Author

T.T. Srinath Ph.D., is a sensitivity trainer who uses ‘T’ Group
processes. He has undergone intensive Gestalt Therapy Training
supervised by Steve Vinay Gunther, Director, The Northern Rivers
Gestalt Institute, Lismore, Australia. He is a certificate holder in
‘Playback Theatre’ from Action Methods, England, accredited school
of Playback Theatre. He has been trained by Francis Batten and Ron
Wiener, both senior trainers with the British Psychodrama
Association, in Sociodrama and Action Methods. He has trained
with Jenny Biancardi and John Casson, both of The Northern School of Psychodrama,
Glasgow, UK, in Psychodrama. He is an alumnus of XLRI one of India’s foremost
schools of management and has spent 27 years as an entrepreneur and over 16 years
as a programme facilitator.
As winds of change sweep the world, Given this truth, three principles need to
leadership must awake and rise. The be recognized:
clarion call is to take charge. 1. Order is emergent as opposed to
Organizations today can be defined as a predetermined
‘complex, adaptive, symbiotic systems’ 2. The system’s history is irreversible
(Olson, 2001). Their functioning, therefore, 3. The system’s future is often
requires ‘self-organizing.’ A complex unpredictable.
adaptive system renders visible, legitimate
and significantly a great deal more live Leaders in such a self-organizing system
human behaviour than old bureaucratic play three distinct roles:
structures allowed. It is an entity that is 1. They set the container
constantly changing. It evolves, adapts, 2. Focus on significant differences
develops and exhibits extraordinary
3. Foster transforming exchanges.
ingenuity in the process. All kinds of forms
of human energy that are invisible and Setting the container means influencing the
often taboo in older structures present environment that shapes the behaviour of
themselves and are available for continued a system. Leaders must set general
engagement. requirements for the outcome, but
NHRD Apr09 - 3.p65 132 5/2/2009, 3:26 PM

decisions on how to proceed are left to the they are by the internal dialogue that
players of the organization. Control is encourages an understanding of the
distributed, yet leaders generate a sense of leadership role. Intention thus reflects the
urgency. They stretch boundaries; they also leader’s willingness to pursue a given
shrink boundaries and finally decide on behaviour. Significantly, when Walt
what business we are in. Disney made vocal his intent to provide his
clients with a ‘Fun experience’, he
When focusing on differences they explore
programmed himself to demonstrate such
contradictions, accept contention and
behaviour. The display of intent is
adversity, raise tough questions, encourage
governed by the leader’s personal history,
workforce diversity and understand
abilities, stored information, belief and self-
significant differences in the external
dialogue.
environment.
Thus the leader in response to his/her
In fostering transformational exchanges they
intent establishes the context within which
encourage feedback, reconfigure (loosen or
his/her people can act. This can be
tighten) networks and encourage learning.
explained through the examples of
A model of leadership demonstration luminaries such as Azim Premji who
presents itself for consideration: moved from vegetable oil making to
Information Technology, setting clearly the
4C Model
4C Model of ofLeadership
Leadership Demonstraton
Demonstration context for his people to act. When
Dhirubhai Ambani declared to the world
that he wanted a telephone call to be
Clarity
Clarity of intent
of Intent Context
Contextto Act
Act cheaper than a post-card, he set the context
for a new business. Therefore a leader
sets the context in which his/her followers
can act.
Mere context setting does not allow
leadership demonstration. This is followed
Container to Practice
Container to Practice Courage
Courage to
to Demonstrate by the leader’s courage to demonstrate risk
Demonstrate
taking, seizing opportunities and showing
initiative. Leaders do this in many ways.
Some are:
1. Through structuring resources
Intention has been conceptualized as being
2. Maintaining flexible focus
a function of beliefs that provide a link
between thought and subsequent 3. Develop temporal agility
behaviour (Fishbein and Ajzen, 1975). 4. Behavioural flexibility
Bird’s (1988) model of entrepreneurial 5. Influence others to commit to resources.
intentionality illustrates intention as a
linear process moving from beliefs, to a. Through structuring resources: This
attitudes to intention to behaviour. The is linking existing resources such as
relationship between intention and money, invention and hard work to
behaviour is also influenced by such factors future outcomes. The leader exercises
as skill, ability and will-power. The free choice in directing the organization’s
disposition to play a leadership role is efforts. Structuring resources is also
impacted by contextual factors. It is a affected by timing of events and this
combination of these factors, affected, as timetable involves expectations,
NHRD Apr09 - 3.p65 133 5/2/2009, 3:26 PM

business plans and motivations of Outside the organization they develop
the leader. and use a network of associations.
The use of experience, observation,
b. Maintaining flexible focus: Flexibility
dialogue, discussion and feedback are
of focus and clarity of vision helps the
methods that can help a leader in
leader assume responsibility for the
examining structuring resources,
details of daily operation as well as the
maintaining flexible focus on business
big picture. The ability to move between
issues, developing temporal agility,
details and vision is like a strategic
developing behavioural agility and
zoom lens, remaining focused by
influencing others to commit resources.
changing the frame of reference.
c. Develop temporal agility: The ability Clarity of intent, context to act, courage to
to comfortably move between multiple demonstrate cannot happen without
future time horizons. Long-run boundary definition. Thus setting the
thinking is important to forming boundary or the container becomes
relationships with others and to paramount. The recent example of
strategically position the firm. Agility ‘Aravind Eye Care System’, India, where
requires a cognitive reframing of Dr.G.Venkataswamy established
expectations when solving problems. unequivocally, that he wanted to eradicate
blindness, set the boundary for every
d. Behavioural flexibility: Developing
ophthalmologist who joined the hospital,
behavioural flexibility along with the
to operate within. It was not a hospital for
shifting frames of reference requires the
general surgery but for eye care.
leader to be able to shift from function
to function and from role to role. While leadership can be a lonely journey
Leaders who remain in control of their the challenge is for leadership to foster the
ventures as they grow, mature, and belief, particularly at a time like this that
change go through significant role the people we have are the best. Seeding
transitions. Behavioral flexibility and excitement, commitment, ownership and
willingness to learn characterize those motivation are required to urge the
leaders whose firms are likely to remain business forward without compromise or
and grow. conflict.
e. Influence others to commit resources:
If thoughts such as these are available to a
Leaders must exercise substantial
leader’s instinct he/she must, given his/
influence over others to realize their
her clarity of intent, operate through five
intentions. Leaders must marshal facts,
simple principles (Cooperrider, DL 1990):
analyze data in support of their efforts
and use persuasion to influence others. 1. The constructive principle: recognise
Successful leaders draw on non- that all reality is co-created.
traditional emotional resources to
2. The poetic principle: recognise that
influence the behaviour of others.
each person interprets reality one’s own
Leaders must make use of wide way and that must be factored in.
range of other’s resources and talents
3. The anticipatory principle: recognise
to develop exchange-oriented
what is going right than what is going
relationships both inside and outside
wrong.
the organization. Inside the
organization growth motivated leaders 4. The simultaneity principle: recognise
build a team with necessary skills. that all processes happen concurrently.
NHRD Apr09 - 3.p65 134 5/2/2009, 3:26 PM

5. The heliotropic principle: recognise 3. The organization is learning and is
that all human endeavours are towards therefore in infancy, and needs constant
growth. nourishment
These five principles coupled with clarity 4. Core values do not alter with time
of intent, context to act, courage to
5. Build on life-giving forces by
demonstrate and container to practice
remembering moments when the
when recognized, act as the new leader’s
system has performed optimally in
dictate; the philosophy to embrace then is:
human, economic and organizational
1. Emphasize collaboration and terms.
participation of all voices in the system;
If the model that has been presented and
generating inclusion
the approach resonate with you ‘intelligent
2. Approach the whole process as a reader’, please commence a dialogue for
journey health restoration in your role as leader.
Reference
• Bird B. (1988), ‘Implementing Entrepreneurial Ideas: The case for intention’ Academy of Management Review, Vol.13, No.3,
pp.442 - 453.
1. Cooperrider, DL (1990), ‘Positive Image, Positive Action: The affirmative basis of organizing’, in S.Srivastva & DL Cooperrider
[Eds], ‘Appreciative management and leadership’, San Francisco, Jossey-Bass.
• Fishbein M. and Ajzen I. (1975), ‘Belief, attitude, intention and behaviour: An introduction to theory and research’, Reading, MA:
Addison-Wesley.
• Olson, Edwin.E and Eoyang Glenda H (2001), ‘Facilitating organizational change: lessons from complexity science’, Jossey-
Bass/Pfeiffer, San Francisco, CA.
NHRD Apr09 - 3.p65 135 5/2/2009, 3:26 PM

LEADERSHIP AT BHARTI
INDER WALIA
Abstract
Individuals make groups and groups make organizations. As elaborated in the given article,
leadership is about energizing and developing all the categories as they are intrinsically bound
together. The article explains leadership philosophy and the various leadership development
activities undertaken in one of India's youngest and fastest growing organization - Bharti.
The article also illustrates that leadership is not just about increasing the revenues/profits but
about passion and making the right decisions.
About the Author

Inder Walia joined Bharti Enterprises Ltd in August 2007 as Group
Director- Human Resources and Integration of Bharti Group. He is
also a member of the Bharti Management Board. Prior to joining
Bharti Enterprises, Inder was the Executive Vice President- Human
Resources and a member of the Group Management Committee of
ArcelorMittal for over 8 years, where he was responsible for Group-
wide HR and post-merger Integration. Prior to working with
ArcelorMittal, Inder was with Modi Corp/Modi Xerox and HCL
Hewlett Packard Ltd. Inder is an Economics and Accounting graduate with Post
Graduate Degree in HR from TISS, Mumbai.
Something ignited in my soul, leadership - a big ask. While the company was
Fever or unremembered wings actively involved in growing big, he worked
And I went my own way, passionately leading his team to do the job
Deciphering that burning fire. assigned. Impressed, the company decided to
— Pablo Neruda make him the head of an entire region. For sure,
the success bug had bit him. He led the region
Very often do we find ourselves thinking to dizzying heights of achievement in a short
about what a leader does that makes him/ span of time proving his mettle yet again. The
her stand out. How is it that some people company realizing his potential well in time
become leaders doing the same things as provided the right inputs to him. Within 5 years
what their colleagues do? of him joining, he had reached the senior
An individual with a few years of experience management at the company. What happened
and doing fairly well in his job decides to take a thereon was almost predictable. He hit the right
risk and joins a company all of 3 years old; a keys each time and was given the right insights.
company trying hard to make an identity for Soon enough he ended up being a part of
itself; a company in search of professionals who the leadership team of the group which had by
would work for passion and not for money. He now had grown to enormous’ proportions. He
joined as the head of a state level business and and the group fed of each others success.
was given the task of taking the business to Both are leaders.
NHRD Apr09 - 3.p65 136 5/2/2009, 3:26 PM

This is just one of many success stories at too. Their positive energy often
Bharti. He is just one of the many leaders convinces the employees that their
at Bharti. The group has grown and derives work has a deeper purpose
its strength from such leaders. While at the
helm of affairs is a transformational leader • Conviction in Building Relationships
in Sunil Bharti Mittal, it ought be pointed – The mark of a real leader is his ability
that the group has been successful in to develop close and enduring
making a leader out of a many an relationships. Bharti lives this statement
individuals – many of whom are still with and has inculcated this in its leaders and
the group while some others who have employees alike. Be it relationships with
gone ahead and made successes elsewhere. vendors, business partners or maybe
It is also essential to point that this was just with colleagues. Bharti believes in
made possible only because of the building collaborative long lasting
authenticity and the drive to do better that relationships
Bharti demands not only from its leaders
• Conviction through Self-discipline-
but from each of its employee.
Self-discipline is the most essential
ingredient in making a successful leader.
It is the attribute of a real leader to lead
It helps in gaining respect. While a leader
authentically with conviction.
may have the values, the heart and the
• Conviction of Purpose – It is essential relationships, it is most important to
to know the purpose of leadership for ensure that he/she has the discipline to
without a sense of purpose, leadership convert them into consistent action. This
would be at the mercy of its ego and distinguishes the good leaders from the
vulnerable to narcissistic impulses. At great one’s. This value is most evident
Bharti, the group shares a common in Sunil Bharti Mittal, Chairman and
vision and the purpose of leadership is Group CEO. While the leaders at Bharti
to provide able guidance to achieve the have been competitive always, it is to be
vision always expected that they do that
through a clear sense of purpose, values
• Conviction in Values – Values define and discipline.
leaders and are the real moral compass.
They lead you in the right direction.
As a leader it is essential to know the Leadership Philosophy at Bharti
“real direction” you want to be headed “Leadership is what the leader does”
in. While values are often shaped by That’s the philosophy at the Bharti group.
personal beliefs, Bharti strongly Never to be constrained in the boundaries
believes in certain core values. Often, or realms of what has been done but to take
the stepping stone for success for many the path never taken and to make a success
has been a matching of these with their out of it. Bharti has always focused on
own values transformational changes that have a
positive impact all around.
• Conviction of Heart – Leaders need to
have an ability to ignite the souls of their The group has demonstrated this
followers to achieve greatness far philosophy by leading India’s telecom
beyond. Bharti believes in engaging the success story, with entrepreneurial spirit,
hearts of the employees through the innovation, and strong partnerships being
sense of purpose and shared values and the pillars of growth. Not limiting to the
that is what it expects from its leaders domain of telecom – the area of expertise,
NHRD Apr09 - 3.p65 137 5/2/2009, 3:26 PM

Bharti set out to gain leadership in new of those who did, very few left.
businesses in agriculture, financial services, “Empowerment was very high, to the point
real estate and retail. The group has laid where people felt like owners; like it was their
the foundations to be the best conglomerate business. Being a part of that whole passionate
of future. Sunil was always driven by machine was what kept them with the
building something grand. He still is…and company.” This has been in the DNA of the
so is Bharti! “A lot of people confuse what we company.
have built so far as a great edifice. My personal
belief is that what we have built so far are the An overriding feeling in whatever the
foundations on which to build a truly great group does is being flexible to adapt to
edifice.” says the achiever himself. changing environment and the evolving
The brand essence “Big Transformations, needs. There is a constant challenging of
brave actions” is indicative of the pervasive the status quo and continuous emphasis on
thinking in the group. The actions and innovation and energized new ideas with
drive to achieve has lead it to leadership. strong passion and an entrepreneurial
Bharti already has a world class telecom spirit. Bharti loves to make it happen. Each
business (in Bharti Airtel), which is Bhartian is expected to have an innate
respected for what it has achieved in the desire to do good being open and
short span of time. The group now aims at transparent all the time. And finally, it has
building transformational businesses and will always be about creating a positive
which would be the future growth engines. impact in whichever field we operate in.
This is indicative of the leadership trait of This is what we believe is the DNA of a
never resting on one’s laurels. The new leader at Bharti.
brand logo of the group also reflects the
desire to seek and lead new avenues to While these values propel an individual
grow. It signifies depth, bountiful energy towards leadership, it the Bharti culture
and movement that extends beyond which builds the character of a true leader
boundaries through swiftness, precision – Always being nimble footed when it
and accuracy – something which has led comes to decision making, always taking
the group to where it is today and everyone along while making strong
something which will lead it to achieving formal and informal relationships, being
the shared vision. accountable for what you do and above all
always acting like an entrepreneur while
As per Sunil, “The ecosystem that we have
thinking like a professional. Sunil talks
developed around us is so positive and enabling
about this often. He says, “Today the
that it has the potential to become a global
company has grown and moved from being an
benchmark.”
entrepreneurially led and entrepreneurially
DNA of a Bharti Leader driven (EE) to being professionally led and
entrepreneurially supported (PE). Today we are
There is a strong belief at Bharti that it is
flexible and responsive and if some fire gets lit
essential that people feel empowered.
we can feed it or extinguish it fast. That’s the
There is huge impetus around making
advantage we have.”
people aware of their qualities and making
them responsible to nurture and build While there are definitely those innate
those qualities. Empowerment is expected qualities which set apart the great leaders
to be taken through display of skills and from the all so ran, yet it is often the case
competencies. Sunil recalls that when the that an individual might be unaware of
company was rather new, very few people those qualities. Here is where the
actually came forward to join him. But out organization comes into picture
NHRD Apr09 - 3.p65 138 5/2/2009, 3:26 PM

Empowering People
Achieve
‘Professional-
Entrepreneur’
Making it Happen (P.E.) Balance Openness & Transparency
Empowerment Retain the

with DNA of a Leader at Bharti nimble-
accountability footedness
at all levels
Building
strong format /
informal
relationships
at work
Being Flexible Creating a Positive Impact
Leadership Development at Bharti management, there are training program

The Leadership Development approach at offerings from the best-in-class institutes
Bharti is committed to delivering our e.g. partnerships with institutes like CCL
business focus of building a best in class & INSEAD where we have created
leadership team that nurtures talent & customized programs to deliver trainings
leadership at every level. The purpose is based on our requirement. For the Middle
simple – to keep the leadership pipeline & Junior Management, the group has
alive and buzzing all the time. developed programs with premier B-
schools for building general management
Bharti believes in nurturing talent across skills in our high potential managers and
levels with disproportionate investment on developing competencies. Additionally, e-
our top talent. The group prospers from its learning has been used very effectively in
presence in the diverse industries to give giving the right direction to individuals.
adequate opportunities for individuals to There is huge emphasis given on the
grow. Individuals are encouraged to take employees making and sharing their self
on cross industry, cross functional roles development program (SDP) each year.
across regions for their overall growth. This ensures that there is incremental
growth in terms of capabilities as per the
Additionally, Bharti has leadership expectations of the individuals as well as
development programs for each level that of the organization.
which aim at building a leadership pipeline
to meet the future challenges. Focused development of High Potential
Employees across Levels
Developing the capability of our managers At each level, Bharti has key development
to blossom into leaders of tomorrow is the areas identified which focus on individual
primary thought behind all the external leadership, leading teams as well as on
inputs that Bharti provides. For the senior driving business growth.
NHRD Apr09 - 3.p65 139 5/2/2009, 3:26 PM

LDP (CCL)
Senior Leadership in
Management Action (INSEAD)
Future Business
Leaders Program
(ISB)
Middle
Management Emerging Leader
Program (CCL)
Business Manager
Program (IIMs)
Junior
Management
Integrated high Potential Program

Young Leaders Program
If Bharti has to go global, it would be Bharti believes that a leader should be

essential to have the right leadership on able to provide strategic direction by
board. Almost 30- 35% leaders at the apex encouraging all experts in demystifying
level are either expats or Indians who have complexities of all aspects of business and
considerable experience working across making them so simple that the entire team
countries. The seasoned hands will help in understands them. Akhil further states that
handling the complexity of business not the true mark of a leader is that, “He/She is
only in India but also in global market, always ready to take the blame for failures or
whenever the opportunity arrives. “Bharti’s not so successful initiatives and liberally passes
principle to proactively look at future has helped on the credit to others – individually and
the company improve on productivity and collectively and spreads positive energy with
efficiency. The company is no longer dependant every action and speech.” This applies to all
on a single person as we have managed to build industries and irrespective of the scale and
a leadership pipeline.” Says Bharti Airtel CEO level of maturity.
and JMD Manoj Kohli.
Bharti has reached where it has through
Conclusion sheer hard work, passion, far sighted
strategy, sound execution, ability to
The Deputy Group CEO & Managing
innovate constantly and strong leadership.
Director for Bharti, Akhil Gupta, puts the
true meaning of a leader in perspective. “A The success of a leader goes way beyond
true leader to us (Bharti) is one who leads and revenues, profits and bottom lines. A leader
encourages transformational changes which is about providing sound governance,
others may either not have the authority or the igniting the hearts of the employees and
courage to do on their own.” says Akhil. building a succession line for years to come.
NHRD Apr09 - 3.p65 140 5/2/2009, 3:26 PM

Leadership is about passion, making the Peter Drucker said about leadership,
right decisions for the common good, “Leadership is not magnetic personality—
taking everyone along on a journey and that can just as well be a glib tongue. It is
making a success out of it. It is about not “making friends and influencing
challenging the status quo and improving people”—that is flattery.
each time. Bharti, through its culture, Leadership is lifting a person’s vision to
values and its DNA, ensures that the higher sights, the raising of a person’s
environment and the ingredients are right. performance to a higher standard, the
It’s just a matter of how one uses this to building of a personality beyond its normal
make an authentic leader out of oneself. limitations.”
Acknowledgements
Our profound thanks to all the contributors of articles and book reviewers
who have taken time off from their schedules out of their passion for
the field.
We would also to thank Mr. N.S. Rajan, guest editor for this issue for his
dedicated contribution at every stage in bringing out this issue.
Our special thanks to Amrita Vijay Kumar, E&Y for her tireless contribution
and also to Komal Jalan and Akshay Chadha, E&Y for their help.
Our thanks to Rachel Tharian for her support.
— Editorial Board
NHRD Apr09 - 3.p65 141 5/2/2009, 3:26 PM

BOOK REVIEWS
1. LEADERSHIP BRAND
(Developing customer-focused leaders to drive performance and building lasting value)
Author : Dave Ulrich & Norm Smallwood
Published by : Harvard Business School Press (2007), Price : USD 29.95, ISBN-13 : 978-1-4221-1030-0.
HR guru Dave Ulrich and his colleague at RBL group, Norm Smallwood,
have come out with yet another unputdownable masterpiece titled
“Leadership Brand” in 2007. It is an absolute intellectual delight and
treat for institution builders in general and more particularly for those
interested in the field of Human Resources and Leadership Development.
This book is a true treasure for many reasons. Firstly, it takes the evolution
of leadership to a different and higher orbit; secondly, it provides a very
compelling framework for organizations to elevate leadership focus to
making it an organizational capability; thirdly the approach authors have
taken represents a refreshingly outside-in perspective as opposed to the
traditional approach to leadership frameworks that has, for decades, been
inside-out; and fourthly, the authors have given a very systematic approach
to building a leadership brand rather than merely conceptualizing the need
for the brand.
In introducing the book through its preface, the authors make many powerful observations. While
reinforcing that leadership matters, they clarify the need for shifting the focus from studying leaders
to studying leadership. “Good leaders just do not build their personal credibility, but build leadership
capability or the capacity of the organization to sustain future leaders” say the authors. Building
such a capability then represents an invaluable investor intangible for the organization and thereby
they build lasting value for the organization.
Simply defined, leadership brand is the identity of the firm in the mind of the customers made real
to employees because of customer-centric leadership behaviours. A leadership brand translates
customer expectations into employee behaviours and that outlasts the individual leaders! Leadership
brand also represents a higher orbit in the domain of our understanding about leadership. Ulrich
and Smallwood highlight that the focus of most organizations so far has been one or more of the
following:
• Individual leaders exposed to external environment as brands by themselves. They are the
external face of the organizations and appear often on the front cover of business magazines.
This is often understood as the case of “celebrity leaders”
• Individual leaders are identified and groomed internally to become more competent often
with a help of a well-defined competency framework. This produces a situation of “competent
leaders.”
• Organizations also shift the focus from individuals (leaders) to capability (leadership) by
building internal systems and processes for creating a leadership engine. This delivers what
may be called as “leadership capability”
But lasting value is built for the organization only when there is an “orbit change” and organizations
move the focus to capability and external customers and investors. This delivers an organizational
identity of leaders throughout the organization that bridges customer expectations and turns these
NHRD Apr09 - 3.p65 142 5/2/2009, 3:26 PM

into employee and organizational behavior. This is when “leadership brand” is produced. Like
product brands and firm brands, leadership brands, when accomplished, provide lasting competitive
advantage for the organization. Authors explain this in the very first chapter with the examples of
Canadian Tire company, Bon Secours Health Systems Inc. and Drugstore.com.
Authors also provide a six step process for building a leadership brand. These steps in brief are:
1. Build a case for leadership brand
2. Create a leadership brand statement
3. Assess leaders against the brand
4. Invest in leadership brand
5. Measure leadership brand investment; and
6. Build leadership brand awareness to key stakeholders.
In chapters 2 through 7, authors detail out the foregoing steps and provide key insights and ideas
on how to accomplish each of these steps with several examples. For example, chapter two helps
in linking the leadership brand to business strategy through 6 compelling reasons such as workforce
planning, achieving right results the right way, strategy shits, geographic expansion, delivering
both organic and inorganic (M &A) growth and finally matching high-potential leaders with critical
jobs in the organization. Likewise, chapter 5 clarifies how to go about making investments in
leadership brand. The key messages here include: branded leadership investments recognize
that not all leaders are equal; these investments are personalized; they form an integrated system
and are not isolated events and finally these investments are tied to the business. Throughout the
book, the authors provide illuminating examples and checklists for measuring progress.
Chapter 8 is focused on preserving the hard-created leadership brand, while chapter 9 provides
excellent guidance on creating a personal leadership brand statement. The book concludes with
two appendices. First one helps with brand criteria for product and firm brands as well as the
leadership brand. The second appendix throws light on how to spot firms with leadership brand
analyzing the examples of GE and McKinsey.
I call this book as “unputdownable” because of the very fresh and impressively different perspective
to building leadership capability that Ulrich and Smallwood offer in terms of leadership brand. The
future competitiveness for the firms will move far beyond their product brand or firm brand to yet
another intangible called the leadership brand. In my professional experience watching how
corporations approach leadership, I distinctly notice a spectrum with the far extremes characterized
by two major camps: First ones (and arguably better) talk about their “building leadership” with
systems and processes; and the second ones brag about their “leadership building.” Most of the
firms are of course somewhere in between. And that is the reason why I consider the “leadership
brand” as a master craftsmanship by Dave Ulrich and Norm Smallwood.
I recommend this book for organizational leaders and HR professionals as the wisdom offered in
this book together with the roadmap gives them a lifetime opportunity to create lasting value and
game-changing competitive advantage.
Reviewed by
C.Mahalingam (Mali). Mali is currently the Executive Vice Presisent and Global Chief People
Officer for Symphony Services Corporation.
He can be reached at mahalingam.c@symphonysv.com
NHRD Apr09 - 3.p65 143 5/2/2009, 3:26 PM

2. BOOK APPRECIATION
LEADERSHIP IN THE ERA OF ECONOMIC UNCERTAINTY The New Rules for Getting the Right
Things Done in Difficult Times
Tata McGraw-Hill Rs.300
Ram Charan, a thinker and coach, who lives out of a suitcase, travelling
from country to country and across continents offering his message to
leadership, has captured succinctly and meaningfully the role of a leader,
particularly a business leader in these times of economic uncertainty and
turbulence.
Ram Charan is a noted expert on business strategy and has helped
businesses and leaders steer through the minefield of business problems.
In his latest book ‘Leadership in the Era of Economic Uncertainty’ , he offers
several lessons to cope with the current scenario.
The book is presented in 9 chapters as follows :
INTRODUCTION-CORPORATE CRISIS!
CHAPTER 1 THE CHALLENGE OF MANAGING IN A TOXIC ENVIRONMENT
CHAPTER 2 AT THE HELM:What CEOs and Business Unit and Country Managers Must Do
CHAPTER 3 ON THE FRONT LINES:Sales and Marketing
CHAPTER 4 MIND OVER MONEY:The Chief Financial Officer
CHAPTER 5 MAKING IT ALL WORK:Operations
CHAPTER 6 REFOCUSING INNOVATION:Research and Development
CHAPTER 7 TYING IT ALL TOGETHER:The Supply Chain
CHAPTER 8 SUPPORTING THE TEAM:Staff Functions
CHAPTER 9 THE VIEW FROM THE TOP:The Board of Directors
MOVING FORWARD
While the book has specific messages for CEOs, COOs, CFOs, CTOs, it also has messages for
every business leader who aspires to make a difference. Briefly his messages are as follows:
1. Leadership must recognise that only by synchronising people as a companywide team, can
we obtain ‘focus, speed, urgency and flexibility’ making and executing decisions faster
2. Leadership derives its authority not from omniscience but from its ability to facilitate
understanding
3. Inspiration comes from incremental successes. These are high energisers that build further
success. Leaders must therefore celebrate small successes
4. While a realistic assessment is required to understand and accept the magnitude of a problem,
the fact is that few problems are insoluble. Leaders must focus their people on the vision of
what is possible
5. It will take imagination and guts to place strategic bets with no guaranteed payoffs when there
is little money available and so much uncertainty about the assumption a plan is based on.
Yet such bets are critical. Leaders must invest with faith
6. Questions leadership will be asked by subordinates are:
i. ‘Are we going to make it?’
ii. ‘What do I have to do?’
Leadership has to provide reassurance as well as guidance to everyone in the company.
NHRD Apr09 - 3.p65 144 5/2/2009, 3:26 PM

7. The leader’s job is one of leadership and operations. The first is about inspiring and motivating
people to go beyond their fears and painting a believable future that is waiting after the storm.
The second is about the daily nitty-gritty of doing business successfully in a very tough and
unpredictable environment.
8. The leader’s actions have to be bold, not tentative, if we have to convey confidence.
9. Leadership must identify the constituents and things that are at the core of their company and
protect them from loss or damage during the crisis.
10. This is a time that requires superb horizontal cooperation among people. Leaders must
encourage cross-pollination.
11. Leaders have two major responsibilities that must be met through communication: information
flow and motivation. It is essential to repeat it time and again to be sure everyone gets it.
The need is for leadership to have clarity of intent, create context for people to act, demonstrate
courage of conviction and establish the container or boundary within which people can practice.
S.SADASIVAN
Research Associate, Dr. T.T. Srinath & Associates.
3. THE GAMECHANGER: HOW EVERY LEADER CAN DRIVE EVERYDAY INNOVATION

Author : A.G.Lafley & Ram Charan
Published by : Penguin India (Portfolio), 2008; 336 pages, Rs.399.
Oh, well, what is it here that we haven’t heard about before? We’ve all
heard about how business must be ‘close-to-the-customer’ for it to be
consistently successful. We know that innovation – by whatever name you
call it; Market Research, R&D, suggestion schemes, kaizen or brainstorming
– is extremely critical if we have to find new ways of doing things, or even if
we have to look for new markets and new products. So why has
‘The Gamechanger’, co-authored by A.G.Lafley (Chairman and CEO,
Procter & Gamble) and Ram Charan (Business Advisor and author) created
so much of excitement among business leaders?
Procter & Gamble (P&G) ended the 1999-2000 fiscal with results that were
embarrassing to everyone in the company. Lafley, as the newly appointed
CEO, had his team focus on a few key areas. Of the five areas they identified
(customer-centricity, opening up, sustainable organic growth, organize around
innovation and thinking differently about innovation), two were exclusively around innovation while
one another was based on using innovation. The insight that innovation must be integrated into
every aspect of the organization was the biggest reason for P&G’s stellar performance in the seven
years since. The insight itself may appear simplistic; Lafley’s detailed explanation of how P&G did it,
combined with Ram Charan’s complementary examples from several other organizations provide a
rich lode of ideas and practices that we can draw from – and that’s the core appeal of this work.
But for HR practitioners, there are some deeper insights. Although there are many references to
‘business leaders’ and ‘leader in charge of P&L’ using innovation in a game-changing manner, the
drivers for this come from a very basic value system of accepting that innovation does not need
any special skill. Very early on in the book, the authors acknowledge that “...innovation is a social
process. And this process can only happen when people do that simple, profound thing – connect
to share problems, opportunities and learning. To put it another way, anyone can innovate, but
practically no one can innovate alone.” Isn’t that a challenge for the HR Manager, more than for
anyone else? How does the HR Manager provide the tools for the business to harness innovation?
NHRD Apr09 - 3.p65 145 5/2/2009, 3:26 PM

Thankfully, Lafley & Charan do not leave us completely clueless. The section on ‘Organizing for
Innovation’ provides a set of criteria that can serve as a guideline in designing an appropriate structure
for your organization. Examples of structures from organizations like Hewlett-Packard, 3M, Microsoft,
DuPont – and very detailed descriptions of different enabling groups within P&G itself help us get an
idea of how the set of criteria were evolved, which will then help us grow our own.
Clues continue in the section on ‘Innovation is a Team Sport’; the creation of a culture which is
more courageous, more connected and collaborative is almost a prerequisite for game-changing
innovation. The elements of team building which are exhibited at P&G’s ultra-innovation Clay
Street group create a set of ‘connecting behaviours’ which are populated across the organization
by those using the services of the Clay Street group. Detailed descriptions about roles to be
considered when building an innovation team help stimulate the HR Manager’s thinking about
what it really takes to build a team for innovation. A breakdown of the elements of an Innovation
Culture gives us a handy reference to check against.
All of these make ‘The Gamechanger’ interesting for a HR Manager. Despite some old chestnuts
(like ‘Rules of Brainstorming’ or a description of the stages of team formation in an innovation
team), there are enough new approaches to make the book a very worthwhile read!
Review by:
R.Shantaram, Vice President - HR, Prasad Corporation Ltd., Chennai.
4. STRENGTHS BASED LEADERSHIP

Author : Tom Rath and Bary Conchie
Published by : New York: Gallup Press. p.265.(2008)
This is yet another Gallup publication based on decades of
research in scores of organization across the globe.
A study of more than 10,000 followers around the world who were
asked why they follow the most influential leader in their life,
resulted in the following key findings: The most effective leaders
• are always investing in strengths;
• surround themselves with the right people and then maximize
their team and,
• understand their follower’s needs.
About one third of the book is devoted to explaining the above in three parts. The next 140 pages
are devoted to provide a guide to the 34 themes (around various strengths).
34 StrengthsFinder Themes
Achiever Deliberate Learner
Activator Developer Maximizer
Adaptability Discipline Positivity
Analytical Empathy Relator
Arranger Focus Responsibility
Belief Futuristic Restorative
Command Harmony Self-assurance
Communication Ideation Significance
Competition Includer Strategic
Connectedness Individualization Woo
Consistency Input
Context Intellection
NHRD Apr09 - 3.p65 146 5/2/2009, 3:26 PM

The last 20 pages explain the research behind the StrengthsFinder, introduce the team working
on Work Team Engagement and summarize the reasons why people follow their leaders.
The research behind strengthsfinder is backed from the Clifton StrengthsFinder (CSF), which is an
online measure of personal talent that identifies areas where an individual’s greatest potential for
building strength exists. It helps individuals discover how to build upon their talents to develop
strengths within their roles. The authors acknowledge that CSF is not designed or validated for use
in employee selection or mental health screening. The strengths philosophy means that individuals
gain more when they strive to build on their strengths. Strengths are viewed as extension of talent.
The strength construct combines talents with associated knowledge and skills and is defined as
the ability to consistently provide near-perfect performance in a specified task. Though the instrument
is labeled Clifton (has had a long -50-year — career at the University of Nebraska) StrengthsFinder,
the authors assert that the instrument actually measures talents that serve as the foundations for
strengths development. Clifton considered success to be closely associated with personal talents
and strengths in addition to the traditional constructs linked with analytical intelligence. The CSF
evolved, over the years, into a 180 item one covering 34 themes. CSF is available in 24 languages
and is appropriate for administration to adolescents and adults with a reading level of 10th grade or
higher. In 2006 Gallup researchers undertook a comprehensive review of CSF psychometrics,
which led to some revisions in the instrument (version 2.0). Several studies were carried out to
investigate into the CSF’s continuing reliability, validity and applicability to both the general population
and college students in particular (some of the recent studies were listed on pages 243 and 244).
The CSF is often used as a starting point for self-discovery in Gallup strengths-based development
programs. After a respondent has completed the assessment and talent feedback is provided, a
set of developmental suggestions is customized to the idnividual’s Signature Themes for a more
informed view of self.
Gallup’s research of over 10,000 people also examinies leadership from the follower’s perspective
and came out with the following key themes (or basic needs):
• Trust (other words cited by followers included: honesty, integrity, and respect)
• Compasion (other words cited by followers included: caring, friendship, happiness and love)
• Stability (other words cited by followers included: security, strength, support, and peace)
• Hope (other words cited by followers included: direction, faith, and guidance)
More than 85 per cent of respondents selected the leader who had the most impact ass someone
very close to the person answering the survey.
This is a research based book which uses psychometry to facilitate personal development and
growth through self discovery, feedback and discussion with colleagues, managers and friends.
For those who buy the book, there is a bonus: There is a packet at the end which contains the
purchaser’s unique access code to take the StrengthsFinder 2.0 assessment. IF you are buying
the book, after you complete the assessment, you will receive a personalized strengths-based
leadership guide. www.strengths.gallup.com provides more insights and gives the research link.
The marketing trick is that the access code is valid for one user only. Do not buy the book if the
packet is missing or has been opened.
Reviewed by:
Dr C S Venkata Ratnam, Director, International Management Institute, New Delhi.
The author can be reached at csvenkataratnam@imi.edu
NHRD Apr09 - 3.p65 147 5/2/2009, 3:26 PM

NHRD Apr09 - 3.p65 148 5/2/2009, 3:26 PM
ABOUT THE JOURNAL
NHRD Network Journal The National HRD Network publishes a semi-academic quarterly journal-each issue dedicated to a
theme. Publications so far include on the themes “IT in HR”, ”Performance Management”, “Attracting
Leadership
and Retaining Talent”, “Career Management”, “Organizational Change”, “Global HRM”, “Women in
Volume 2 Issue 2 April 2009 Corporate Leadership Roles”, “Organization Development” and “Learning and Development”.
The current issue is on the theme of “Leadership”
NHRD Network Board Members
The plan for the ensuing issues is as follows:
National President: Aquil Busrai, ED-HR, IBM India Limited,
Past National Presidents: Dwarakanath P, Director-Group Human Capital, Max India Date of Publication Theme Guest Editor
Dr. Santrupt Misra, Director Aditya Birla Group July 2009 Work-Life Balance Dr. C.S. Venkataratnam
Regional Presidents: Oct. 2009 Institution Building Mr. S. Varadarajan
East: Prof. Madhukar Shukla, XLRI, Jamshedpur Jan. 2010 “HR for, and of Gen Next” —
Leveraging Demographic Dividend Dr. S. Chandrasekhar
South: Gopalakrishna M, Director Incharge, A.P. Gas Power Corporation Ltd.
West: Satish Pradhan, Executive VP Group HR, Tata Sons The journal publishes primarily three categories of articles:
North: NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, • Conceptual and research based
Ernst & Young
• Contributions from thought leaders including a limited number of reprints with due permission
National Secretary: Dr. P VR Murthy, CEO, Exclusive Search Recruitment Consultants • Organizational experiences in HR interventions/mechanisms
National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises

Editorial Board Members :
Executive Directors: Satyanarayana K (Hon.)
Dr. P.V.R. Murthy, Managing Editor is a product of I.I.T., Kharagpur and IIM, Calcutta with close to thirty
Mohit Gandhi years experience in H.R. field. He is founder and runs an executive search firm Exclusive Search
Recruitment Consultants. He is associated with a number of academic institutions. He is trained in
Editorial Board NS Rajan, Partner, Human Capital and Global Leader – HR Advisory, TQM in Japan and in human processes from ISABS and NTL, U.S.A., He is the National Secretary of
Ernst & Young, ns.rajan@in.ey.com
National HRD Network.
(Guest Editor for this issue)
Dr. PVR Murthy, Managing Editor, Aquil Busrai is Executive Director Human Resources with IBM India. He has over 36 years HR
CEO, Exclusive Search Recruitment Consultants, experience, both in strategic and operational HR with blue chip organisations like Unilever in Kenya
pvrmurthy@exclusivesearch.com and India, Motorola in Asia Pacific and Shell in Malaysia. He is the National President for National HRD
Network.
Aquil Busrai, Executive Director, Human Resources, IBM India
Limited, aquil.busrai@in.ibm.com Dr. Pallab Bandyopadhyay is the Vice President & Head, Human Resources - Asia Pacific, Perot
Dr. Pallab Bandyopadhyay, VP-HR-Asia Pacific, Perot Systems, Systems. A doctoral fellow from XLRI and AHRD. He is trained in OD and Human Processes from NTL,
pallab.bandyopadhyay@ps.net USA, he believes in applying HR concepts to practice to make it more meaningful and effective. He is
a mentor and coach to many young HR professionals.
Publisher, Printer, Owner Satyanarayna K, Hon. Executive Director, National HRD Network on
and Place of Publication behalf of National HRD Network, 506, Sai Siri Sampada, 7-1-29/23 & 24, NHRD firmly believes in and respects IPR and we appeal to the
Leela Nagar, Ameer Pet, Hyderabad 500 016. Tel: +91 (40) 2374-2429 contributors to strictly honour the same.
ksnhrd@gmail.com
Printed at Nagaraj & Co. Pvt. Ltd., 156, Developed Plots Industrial Estate, For any further clarifications, please Contact :
Perungudi, Chennai 600 096. Tel : 044 - 66149291 The Managing Editor
Dr. P V R Murthy, CEO, Exclusive Search Recruitment Consultants,
The views expressed by the authors are of their Copyright of the NHRD Journal, all rights reserved.
own and not necessarily of the editors nor of the Contents may not be copied, emailed or reproduced #8, Janaki Avenue, Off 4th Street, Abhiramapuram, Chennai 600 018.
publisher nor of authors’ organizations without copyright holders’ express permission in writing. pvrmurthy@exclusivesearch.com

ISSN - 0974 - 1739

April 2009 Volume 2 Issue 2
National HRD Network

John Adair
The National HRD Network, established in 1985, is an
Arvind Agrawal
association of professionals committed to promoting
Stewart D. Friedman
the HRD movement in India and enhancing the
capability of human resource professionals, enabling Paul Hersey
them to make an impactful contribution in enhancing N.S. Rajan
competitiveness and creating value for society. Dave Ulrich and Norm Smallwood
Towards this end, the National HRD Network is Gary Yukl and Rubina Mahsud
committed to the development of human resources Anu Aga
through education, training, research and experience Sandeep Bakhshi
sharing. The network is managed by HR professionals
Leadership
Jaspal Bindra
in an honorary capacity, stemming from their interest
in contributing to the HR profession. Leadership Peter Capelli et al
Jim Collins
The underlying philosophy of the NHRDN is that every B. Santhanam
human being has the potential for remarkable Vijay Bharadwaj
achievement. HRD is a process by which employees in
Aquil Busrai
organizations are enabled to:
Rajeev Dubey
• acquire capabilities to perform various tasks P. Dwarakanath
associated with their present and future roles;
Adil Malia
• develop their inner potential for self and Anand Nayak and L. Prabhakar
organizational growth, Vivek Patwardhan
• develop an organizational culture where Satish Pradhan
networking relationships, teamwork and Sanjeev Sahi
collaboration among different units is strong, T.T. Srinath
contributing to organizational growth and
Inder Walia
individual well-being.
April 2009
A quarterly Publication by The National HRD Network
www.nationalhrd.org www.nationalhrd.org

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NHRD Network Journal

ISSN - 0974 - 1739

NHRD Network Journal

National HRD Network

A quarterly Publication by The National HRD Network

NHRD Apr09 - wrapper.p65 1 5/2/2009, 3:50 PM

Regional Presidents: Oct. 2009 Institution Building Mr. S. Varadarajan

National Treasurer: Ashok Reddy B, VP-HR, Info Tech Enterprises

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2 Leadership for Averting Organization Disasters Arvind Agrawal 8

3 How To Improve Performance Stewart D. Friedman 16

4 Pace, Then Lead Paul Hersey 22

5 Leadership Theory: In Evolution NS Rajan 24

6 Our Leadership Journey Dave Ulrich and 33

7 Linking Strategic Leadership and Human Gary Yukl and 44

9 Effective Leadership is Driven by Sandeep Bakhshi 57

10 Leadership in Changing Times Jaspal Bindra 61

11 The DNA of Indian Business Leadership Peter Capelli, Harbir Singh, 66

12 The 10 Greatest CEOs of All Time Jim Collins 72

13 I10 : Framework For Leadership B Santhanam 80

15 Letter to a Young Professional Aquil Busrai 94

16 Leadership in Tomorrow’s Company Rajeev Dubey 96

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17 Leadership in Perspective P Dwarakanath 100

18 Corporate “Ubermensch” – A View from

19 The ITC Leadership Paradigm: Vision, Anand Nayak and 109

20 Dimensions of Leadership Vivek Patwardhan 116

21 Leadership – The Experience of Those Satish Pradhan 122

22 All Aboard! – The Leadership Journey at HAL Sanjeev Sahi 126

23 The New Leader: An Emerging Butterfly T.T.Srinath 132

24 Leadership at Bharti Inder Walia 136

26 Leadership in The Era of Economic S Sadasivan 144

27 The Gamechanger: How Every Leader R Shantaram 145

28 Strengths based Leadership by C S Venkata Ratnam 146

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Dr. PVR Murthy Aquil Busrai Dr. Pallab

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About the Author

“Leadership is action not passion” Sandhurst as part of a programme

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Figure 1.1 The priority of needs

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Position of Leader in relation to Group

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About the Author

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April | 2009 NHRD Network Journal 9

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Fig. 1 : Consequence of Executive Job Demand on Leadership behaviour

Higher Task Followers’

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