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You can be a leader only if you have credibility 

Walter Vieira  
What makes people want to follow a particular leader? There has never been much of a mystery about it. People want to be guided by those they respect and by those who have a clear sense of direction. It would seem that people looked for these qualities at the time when Moses, as leader of his people, led them to the promised land. The requirements have not changed today and are unlikely to change in the future.

A well-known executive research firm polled 1,500 senior executives about the personal traits and management styles that would be most important for chief executives in the year 2000. The respondents said that they wanted leaders who were, above all, ``ethical'' and who ``convey a strong vision of the future''. They should be credible leaders who are worthy of being followed.

How is credibility developed and identified? The Kamat Corporation was among the largest manufacturers of biscuits in South India. They were a regional player and No. 2 in market share in most southern states. They had grownfrom a small-scale industry to a Rs 80 crore company in just 12 years.

Kamat, the founder and owner, was then made an offer by an FMCG multinational company to buy him out. They had wanted an entry into the biscuit market that would complement their own range. Buying out Kamat was the easiest and fastest way to do it. They offered Kamat a price he could not refuse. There was no need to negotiate. Kamat took a month to think it over. Then he went back to the FMCG company. He would agree to sell, provided the new owners retained his sales staff and his stockists for five years from the date of the sale. The new buyers would not agree to this proposition. They already had their field force and distribution system. Why should they carry this deadwood?

But Kamat was adamant. He could not clear out and let his people down, just because he was getting a big sum of money. They had trusted him. They had helped him to build the business. They had shown loyalty to him-and he wanted to reciprocate. The FMCG companywould not relent. There was a deadlock. Finally, the negotiations broke down.

Over the next few months, the news gradually leaked out about why Kamat did not sell the company, even though he had come so close to doing so. The stockists and salesmen were very touched. They each resolved to work harder to show their gratitude to Kamat, who had sacrificed personal gain on their account. The result: The sales of Kamat's biscuit company doubled in three years. The growth rate per annum had doubled without an increase in the product range. ``One good turn deserves another.''

Ravi was a trainee sales engineer in a large engineering company. He had been in Nagpur for just one year and was getting on well in his job.

However, Ravi began developing lumps on his chest. He went to the company's doctor, who put him on antibiotics. When the treatment was discontinued, the lumps increased. Ravi was very depressed and decided to resign and return home to Chennai. The president of the company called Ravi and asked himwhy he had resigned. The company was very happy with his performance.

When Ravi explained the problem to the president, the latter said that he would not let Ravi go on this account and he would like to help him. Ravi was given a complete medical check-up. It was found that he had tuberculosis and needed an operation. The total cost of the treatment was nearly Rs 3 lakh. The company paid without demurring, although as a one year old trainee, Ravi was not really eligible for this facility.

Ravi is now back in Nagpur, loyal to the company and making good progress. The other trainees were motivated by this incident and with the president's attitude and action. The overall morale got to an all-time high.

Shekhar was CEO of a company in Pune, which was part of a large family controlled conglomerate. Shekhar had been in the company for 30 years and had risen from junior engineer to CEO in just 18 years. When he got a call from Mumbai that he must come urgently the next day and meet the chairman, he wonderedwhat the agenda was. He took whatever papers he thought he would need and presented himself at the appointed time. After a few preliminaries, the chairman asked about Shekhar's family and particularly Shekhar's daughter, Poonam. ``I know a nice boy from the ABN Bank,'' he said. ``I met him twice at meetings we had there. He belongs to the same community as you, is young, well-qualified and single. I was wondering whether we could arrange a match for Poonam.''

The chairman arranged a few social meetings at his home. He pushed through all the other arrangements and got some of his staff to help with the wedding preparations. The project was a success! Shekhar did not know how to thank the chairman for his interest and his graciousness. He continued ``to contribute'' till he retired.

A consignment of computer parts was held up at customs. The authorities insisted that the company pay customs duty on these parts. The company was sure that these parts were exempt from duty. Everyone knew that some`facilitation' would nudge the process and the consignment, cleared. But CEO Rao said, ``Nothing doing.'' There was demurrage to be paid. The amount increased every day. But the company fought on, and finally won. They could now clear the goods. In the meantime, the company lost 10 days of production and sales, which worked out to a few crore rupees. But Rao had sent out a signal. It was a message of integrity and seriousness of purpose. Rao personified credibility to the junior-most employee in this large organisation. And after seeing Rao, they knew what to do when faced with a similar situation or dilemma. Who is a leader? Napoleon, buttoning up his coat, running behind the platoon, having lost sight of it in the labyrinth of lanes, asked bystanders, ``Did you see the platoon (sarcastically) pass this way? What way did it turn?'' Someone shouted out an answer and asked ``What happened? Did you miss the formation? Got up late?'' ``Yes,'' Napoleon is reported to have replied, ``I did. I am theirleader!''

So whether you lead from the front or from the rear, it does not matter. You can still be the leader, if you have credibility. And credibility is exposed and identified in small matters and minor incidents. Heroes don't always emerge from the ashes of great wars.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.

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