As founder chairman of New Delhi-based CeNext Consulting and Investment, Ravi Chaudhry offers strategic advisory services to CEOs and company boards on issues related to competitiveness and to governments on development strategies. In his new book Quest for Exceptional Leadership: Mirage to Reality, he talks about how CEOs can become exceptional leaders. Excerpts from an interview with FE?s Rajiv Tikoo:
As you say, a frequent critique of the book has been that ?it is rather naive to assume that CEOs would pay attention to any proposition that could reduce their earning potential, more so because the investors and financial media judge them only by the wealth they generate?. What is your response to it?
My response to this is that while this was indeed the case during the last few decades, when both media and investors were feeding each other?s wealth-centred behaviour and expectations, the ground realities are now changing. A company that makes only money is now considered to be a poor company. Corporate CEOs can no longer brush it away as philanthropic talk. The only choice is: accept it grudgingly or willingly. Those who do not take cognizance of this transformation will soon find that they are being abandoned by consumers and investors.
Several potent forces are speeding up the emergence of this phase, stemming from ?Rise of Civil Society Movements?, and ?Predominance of Youth in New Demographics? armed with networking tools. Corporations that are ?realistic? enough to acknowledge these new contours will emerge as winners in the 21st century.
How does you vision play out while balancing short-term targets of CEOs with long-term aspirations of companies? Particularly when the tenure of CEOs is getting shorter.
An analysis of recent data conclusively shows that the prime reason of CEOs? reduced tenure is because of their blatant focus on only short-term results. Regrettably for companies? shareholders, their CEOs do not accept the stark reality that there are no low-hanging fruits any more?unless your corporate objectives are aligned with society?s expectations and in sync with nature. There was a time when companies could get away with profits even when their policies resulted in positive harm to society and nature. Today, the new realism demands that even the policy of ?aim to do no harm? is not enough; companies must adopt and transparently pursue the policy of ?aim to do positive good? to the society in which they function. Each country in the world is full of examples of new corporate champions who play it clean, who play it straight and for whom the only route to sustainable profits?both long-term and short-term?is ?doing well by doing good?. On the other hand, those who refuse to change and continue to play by the old rules are falling by the way side.
Is it reasonable to expect CEOs to change late in life when all of us have grown up in the world as usual?
In my book, I have given the well-known example of Bill Gates. As young Microsoft CEO, he was identified with several monopolistic postures in pursuit of profits, but the change that he has accomplished in his personal value-system since then is nothing short of exemplary and deserves to be applauded and emulated. Bill Gates has already donated over one third of his entire wealth. I have called upon all CEOs to take a small leaf from his example and open their hearts and widen their minds.
I have demonstrated that personal transformation is possible, in fact quite easy, provided the initiative comes from within. I call this process of transformation as ?Ashok-ization?, prompted by the most remarkable mind-set change ever achieved in history, by King Ashoka in India, in 3rd century BC. Corporate CEOs who wish to survive and be the winners in would have no choice but to change. My book irrevocably establishes that it is better to do so voluntarily.
Business is just a part of society as it?s. How do businesses break this vicious cycle and take a lead?
The dominant institution in any society, in each period of history needs to take responsibility for the whole. If they do not, their power and influence first wanes and then collapses. Since the second half of 20th century, business has become the most powerful institution on the planet, as the church did in the days of the Holy Roman Empire, and powerful national governments with armies called the shots in 18th and 19th century. The increasing role and power of corporations, on matters of consequence, is a stark reality of our times. Collectively, the actions of the CEOs of the top 10,000 corporations in the world today have more than proportionate influence on the course of our planet?s history. In some domains, their role is as significant and as all pervading as that of many sovereign states. This re-allocation of relative power has created seemingly helpless dilemmas. The business-politics nexus has been the bane of societies all over the world; their actions and decisions are based more on pursuit of private profit rather than public good. A strong group of businesses led by ?realistic? CEOs are tangibly driving change within corporate world and it is only a matter of time before the balance shifts in their favour.
What?s the difference between a successful CEO and an exceptional leader?
A typical successful CEO has what I call ?Base Camp Leadership Traits?. These fall in two domains. (a) Traits relating to strengths within, i.e. ?physical traits? comprising basic intelligence, energy and drive, and professional will, and (b) Traits relating to interface with outside world, i.e. ?mind-traits? such as pragmatic vision (to foresee opportunities), transactional skills (to build teams and motivate) and perseverance (to overcome obstacles).
The journey from base camp leadership to the summit of exceptional leadership calls for a new set of traits, beyond the physical traits and the mind-traits. These are the traits of conscience: pertaining to the heart of the leader. These traits do not call upon us to change our hearts. They only require us to discover our hearts. The tripod of exceptional leadership has three pillars: straight, strong, and unyielding. Pillars of wholeness, compassion and transparency.
The journey to summit of exceptional leadership is not to unchartered waters or unexplored destinations. In fact, the seeds of these traits already exist in most CEOs. It is the nature of seeds to grow. If we are aware of these seeds and let the seeds within us blossom, the path to exceptional leadership is smooth. Several business leaders have already displayed these traits, in abundant measure. While they pursue this journey, they discover a pleasant surprise; they experience a ?triple top line of joy, peace and contentment.? Not only for them, but also in the personal lives of people all around.
What is the most important take-home from your book?
I like to conclude by saying that if you are only pursuing wealth, then it is unlikely that you would listen to or accept anything that does not add to your wealth. But if you wish to pursue wealth and happiness, for you and your family, then the message of this book has strong relevance for every corporate CEO or for that matter any leader in any field.
Quest for Exceptional Leadership: Mirage to Reality
Ravi Chaudhry
Sage Response
Pp 276
Rs 375