an icmr-iipm think tank publication - Cycbth.org

AN ICMR-IIPM THINK TANK PUBLICATION 

COUNTYOUR 

Chickens 

BEFORE THEY HATCH 

A 4PS B&M QUARTERLY SUPPLEMENT ON BUSINESS LEADERS 

VOL-1 ISSUE-2 APR-12 

MARSHALL GOLDSMITH 

LEADERSHIP COACH 

CHANGE 

YOUR 

BEHAVIOR 

PHIL EASTMAN 

AUTHOR & SPEAKER 

CHARACTER 

BASED 

LEADERSHIP 

RONALD RIGGIO 

CLAREMONT INSTITUTE 

WHY IT 

WORKS 

AND HOW? 

NARAYANA MURTHY 

Chairman Emeritus- Infosys 

GOVIND SHRIKHANDE 

Managing Director- Shoppers Stop 

M K ANAND 

CEO- UTV Broadcasting 

JAGDISH KHATTAR 

CMD- Carnation Auto 

RAJEEV KARWAL 

Founder & CEO- Milagrow 

CORPORATE 

TRANSFORMERS 

THE LEADERS WHO REDEFINED BENCHMARKS FOR 

THE CORPORATE WORLD THROUGH THEIR ART OF 

TRANSFORMATION 

GANESH NATARAJAN 

Vice Chairman & CEO, 

Zensar Technologies 

WILFRIED AULBUR 

Managing Partner- Roland Berger 

XERXES DESAI 

MD Emeritus - Titan

COUNTYOUR 

Chickens 



COUNTYOUR 

Chickens 



ALL 

IN THE 

FAMILY 

FAMILY BUSINESSES 

ARE ADOPTING 

GLOBALLY PRACTICED 

MANAGEMENT NORMS 

AND ARE STRIVING 

FOR SYNERGY AMONG 

THE FAMILY MEMBERS 

ON BOARD! 

LINC PEN 

& 

PLASTICS 

VOL-1 ISSUE-1 OCT-11 

PRITISH 

NANDY COM- 

MUNICATIONS 

PHIL JOHNSON 

LEADERSHIP COACH 

EQ IS WHAT 

MATTERS 

THE MOST... 

GORDON CURPHY 

PRESIDENT, C3 

YOU NEED 

TO BE A 

FOLLOWER 

DAVID VEECH 

EXECUTIVE DIRECTOR, ILS 

LEADING 

FOR THE 

FUTURE 

MADISON 

WORLD 

EMAMI 

GROUP 

AND THEY SAID... 

Santosh Srivastava 

Sr. Solution Integrator, 

Ericsson India 

The last issue of Count 

Your Chickens Before 

They Hatch titled “All in 

Family” was a very interesting 

read. I really 

appreciate the effort 

and hard work of the 

editorial team. Leadership 

is a theme which in 

itself is very vast, but 

the magazine covered 

all important areas of 

leadership. I especially 

liked the columns by international 

authors and 

the book review. All the 

best for further editions. 

I am a regular reader 

of Planman Media’s 

magazines and completely 

enjoyed the 

last edition of CY- 

CBTH, which peeped 

through the upcoming 

trends in family businesses 

in the country. 

It gave vivid information 

about leaders and 

leadership. My best 

wishes are there with 

the whole team of CY- 

CBTH. I look forward 

towards the next 

issue. 

Arun Kumar Rai 

LIC of India 

Akhs Ramaraju, 

Whole Time Director, 

NCC Limited 

Your issue looked 

marvelous. The views 

expressed are clear 

and concise and the 

whole structure is 

impressive. Keep up 

the good work with 

high spirit and zeal 

and makes us knowledgeable 

.The international 

columns 

added to the essence 

of the magazine. The 

design of the magazine 

was quite impressive. 

Congratulations to the 

IIPM Think Tank for 

coming out with such 

an informative journal 

that talk specifically 

about the leading business 

leaders. Dealing 

with contemporary topics, 

it was quite interesting 

to read the industrial 

inputs from 

the mouth of the leaders 

itself. The cover story 

on family business 

was well written. Kudos 

to the whole team. 

Akash Pandey 

Software Engineer, 

Capgemini 

Please send your feedback to: sray.agarwal@iipm.edu

CONTENTS 

12 

Marshall Goldsmith 

Author, Professor and 

Leadership Coach. 

COVER STORY 

CAN LEADERS CHANGE THEIR 

BEHAVIOR? 

14 

THE CHARACTER OF LEADERSHIP 

Phil Eastman 

Author of 'Character of Leadership' 

17 

CORPORATE TRANSFORMERS 

Narayana Murthy 20 

Rajeev Karwal 22 

Wilfried Aulbur 24 

Govind Shrikhande 26 

Xerxes Desai 28 

Jagdish Khattar 29 

M K Anand 30 

Ganesh Natarajan 31 

EDITORIAL 

Are you there, Mr. CEO? 5 

FLASH POINTS 

Facebook's billion dollar acquisition 6 

The King of Good Times hampered 7 

KICK OFFS 

“We have to go a long way” 08 

Yogesh Bansal 

Founder – ApnaCircle 

MIDDLE ORDER 

"If you are passing through hell, 

just keep going" 09 

Ajit Andhare 

CEO – Colosceum Media 

INFOGRAPHICS 

Beyond Numbers 10 

INTERNATIONAL COLUMN 

Culture Controls Communication 

Carol Kinsey Goman 16 

The 'HOW' of Transformational 

Leadership 

Ashok Malhotra 32 

Transformational Leadership: What 

will be your legacy? 

Courtney Anderson 36 

FAIR FORWARD 

The amalgamation is intended 

to be a key strategic move 38 

Sulajja Firodia Motwani 

Vice-chairman, Kinetic Engineering Ltd. 

EXCLUSIVE INTERVIEW 

"Time management can be taught" 

Pat Brans 

Author of 'Master the Moment' 40 

LEADING BY READING 

Answer to all your Whys 41 

Cover Design by Ashvin Chitroda 

34 

WHY IT WORKS AND HOW IT WORKS 

Ronald Riggio 

Leadership Professor, 

Claremont Institute 

42 

THE FORTUNE BENEATH INTEGRITY 

Sray Agarwal 

Consulting Editor 

count your chickens before they hatch 4 april 2012

EDITORIAL 


COUNTYOUR 

Chickens 



ARE YOU THERE, MR CEO? 

editorial & research 

FOUNDER EDITOR: MALAY CHAUDHURI 

EDITOR-IN-CHIEF: ARINDAM CHAUDHURI 

CHIEF CONSULTING EDITOR: PRASOON S MAJUMDAR 

EXECUTIVE EDITOR: Namita Chhetri 

CONSULTING EDITOR: Sray Agarwal 

SENIOR EDITOR: Akram Hoque 

ASSISTANT EDITORS: Mrinmoy Dey, Sayan Ghosh 

PRINCIPAL CORRESPONDENT: Amir Hossain 

CORRESPONDENT: Nidhi Gupta, Harshita Singh, Ganesh Roy 

COPY DESK: Charu 

design 

DESIGN DIRECTOR: Satyajit Datta 

ASSOCIATE ART DIRECTOR: Manish Raghav 

DEPUTY ART DIRECTORS: Pragnesh Patel, Siddharth Kapil 

SENIOR DESIGNERS: Priyankar Bhargava, Alpana Aditiya, 

Hitesh Mehta, Kuldeep Singh 

DESIGNER: M.F. Ashraf, Karan Singh, Vikas Gulyani 

SENIOR ILLUSTRATOR: Shantanu Mitra 

ILLUSTRATOR: S.K. Panduranga 

IMAGE EDITOR: Vinay Kamboj 

photography 

GROUP PHOTO EDITOR: Ranjan Basu 

PHOTOGRAPHER: Sujan Singh, Mukunda De, 

Sanjay Solanki, Vikram Kumar, Rangnath Tiwari, 

Shubash Chopra 

CHIEF PHOTO COORDINATOR: Varun Pal Singh 

SENIOR PHOTO RESEARCHER: Sanjay Kumar, Ashutosh Vig 

production 

PRODUCTION MANAGER: Gurudas Mallik Thakur 

PRODUCTION SUPERVISOR: Digember Singh, 

Satbir Chauhan, 

Soumyajeet Gupta, Dipak Basak, Mukesh Jha, 

N. Ekantha Lingam, Deep Narain 

PRODUCTION ASSISTANT: Omvir Gautam 

marketing 

VICE PRESIDENT: Amim Ahmed 

VICE PRESIDENT (WEST): Guljar Singh 

ASSOCIATES VICE PRESIDENT (AD SALES) : 

Sumit Raina, Rajat Sogani 

GENERAL MANAGER (SOUTH): Sunil Kumar 

GENERAL MANAGER (EAST): Bhaskar Mojumdar 

REGIONAL HEAD: Atul Kapoor 

circulation 

REGIONAL HEADS: Swaroop Saha, Bhupinder Bisht, 

Kunj Bihari Joshi, Venkat Narasimman, Joydeep Ganguly 

SALES MANAGER: Manoj, Rizvi, Mukund, 

Parameshwara, Shihabuddin 

CYCBTH online 

CHIEF WEB DESIGNER: Neel Verma 

SR. WEB DEVELOPER: Anil Sheoran, 

Christopher Mani, Sandeep Rohilla, Manoj Chandelkar 

PRINTED BY: 

Rolleract Press Servies, C-163, Ground Floor, 

Naraina industrial Area, Phase-I, New Delhi - 16 

DISCLAIMER : 

All efforts have been taken to ensure the veracity of the information 

contained in the research, however the IIPM Think Tank expressly 

disclaims any and all warranties, express or implied, including without 

limitation warranties of merchantability and fitness for a particular 

purpose, with respect to any service or material. In no event shall the 

IIPM Think Tank be liable for any direct, indirect, incidental, punitive, 

or consequential damages of any kind whatsoever with respect to the 

and materials, although the reader may freely use the research and 

material provided, the IIPM Think Tank retains all trademark right 

and copyright on all the text and graphics. 

We are keen to hear from anyone, who would like to 

know more about IIPM Think Tank’s Publications. 

You can e-mail us on sray.agarwal@iipm.edu 

or alternatively call us at +91 9818244963 

Progressive branding today is 

virtually incomplete without 

the exploitation of social networking 

sites by the head of 

the management teams or more specifically, 

the CEO. Social media’s evolution 

in corporate world is rapid and 

lasting. It is the common man’s nomenclature 

that CEOs are imbibing; be 

it for recruiting, scouting, public engagement, 

or social CRM. The remarkable 

posts, intelligence, wisdom, and 

interaction with the consumers can 

find a brand streets ahead of the left 

outs. Not only consumers, even the 

employees productivity can be enhanced manifold by using collaboration 

tools like blogs and wikis by welding the team with organisational knowledge 

sharing. The value of knowing other people’s opinions, thoughts 

and ideas strengthen the network, which is possible only through interaction 

through social sites. 

The CEOs are fast realising the blip of not adhering to social media and 

have started using it from the top of the pyramid. The online marketing 

has become a trend with a Google research indicating that an average 

consumer source at least 10 different information tags before a purchase 

decision. In another survey conducted by Doremus and Financial Times, 

60 per cent of the executives engage in all sorts of blogs, online advertisements 

and interactions (like LinkedIn) to make their buying decisions. 

The maverick Richard Branson for example, writes in first person in 

his profiles of Facebook, Twitter or Google+, where he narrates not only 

his business but also his travel experiences, his lifestyle and whatever he 

wants to share. The CEO Drew Patterson of Jetsetter, a consumer savvy 

travel startup experience about 40 sales each week through their website, 

offering hotels, villas and adventure experiences to its members. They 

maintain the most cordial relationship with prospective and existing 

members and interact with them regularly that centers from travel plans 

to honeymoon destinations. Finally, one of the strongest online marketing 

companies in the world, called Kate Spade New York, led by its CEO 

Craig Leavett is achieving triple digit growth this year through social 

networking sites. 

There is no doubt that social networking sites are fast becoming a 

major differentiator for all sorts of companies. All sorts of business are 

increasingly compelled to use social media in their fixtures. Customer 

support will be requiring it to receive the complaints by using tools like 

CoTweet, sales department will be requiring gauging the business environment, 

marketing department will find it invaluable for backward integration 

and distribution department will use it to handle down line 

channels… et al. lt would be silly for any CEO to ignore 1.43 billion active 

users accross various social networking platforms. Its time to make sure, 

Mr. CEO, you are there. 

Namita Chhetri 

Executive Editor 

(SMS your views with your name and topic to 0-9818101234) 


FLASH POINTS 

INTERNATIONAL 

FACEBOOK'S BILLION 

DOLLAR ACQUISITION 

The news of acquisition of an 18 month old 

photo-sharing service 'Instagram' by world’s 

largest social networking site Facebook has 

raised many eyebrows! More interestingly, Facebook 

has agreed to pay as much as $1 billion in cash 

and stock, for the transaction. Such huge acquisition, 

just before going to public, though at a first 

glance seem to be an awkward one, but in reality it 

has plenty of bottom line benefits. Instagram could 

have been a potential competitor if not in short run 

atleast in the long run. Notwithstanding, preventing 

Instagram from falling into the hands of competitors 

like Twitter or Google could be other factors 

for such massive amalgamation. It has also acquired 

Instagram’s 400 mn customers through the deal. 

$60 MILLION 

STOCK SCAM 

John Mazzuto, former 

CEO of Industrial Enterprises 

of America 

Inc who pleaded guilty 

to grand larceny in a 

$60 million stock fraud 

scheme and became a 

critical witness against 

a former colleague, was 

sentenced to up to 4.5 

years in prison. 

BILLIONAIRES BY 

REGION (FORBES 2012) 

Region 

No. of Billionaires 

United States 425 

Asia Pacific 315 

Europe 310 

The Americas 90 

Middle East & Africa 86 

World (Total) 1226 

MAN OF THE YEAR 

The last year was a very difficult 

one indeed for the business leaders 

per se as knee deep crisis of 

Eurozone watershed, occupy Wall Street, 

and unemployment engulfed us one after 

the other. In spite of the situation 

being on the rocks, the best of CEOs were 

being able to drift through viz. Facebook 

CEO Mark Zuckenburg, McDonald’s CEO 

Jim Skinner who were able to bring significant 

growth but it was Howard D 

Schultz, CEO of Starbucks, who bagged 

the title of Business Person of the year 

2011 by Fortune magazine. 

MCDONALD’S CEO RETIRES 

The top shot CEO of McDonald's, Jim 

Skinner, who brought about a tectonic 

shift in the fortune of his corporation 

by doubling its turnover from $50 

billion to $100 billion in just 7 years of his 

tenure, finally decided to resign on June 30, 

2012. Skinner was named CEO of McDonald's 

Corp. in 2004 and since then refocused the 

company on customer strategies, business 

disciplines and close global alignment. 

Skinner's leadership brought unprecedented 

growth in the organisation with a compound 

annual total shareholder’s return 

touching 21%! The new McDonald’s CEO Don 

Thompson is likely to face a mighty challenge 

to exceed his predecessor’s legacy. 


NATIONAL 

WELCOME 

ABOARD 

The Hongkong and 

Shanghai Banking 

Corporation (HSBC), 

India's second largest foreign 

bank has appointed 

Stuart Milne as the new 

Chief Executive Officer on 

April 1, 2012 for its India 

operations. He has succeeded 

Stuart A Davis who 

acted as CEO for last three 

years. Milne will have to 

face several hurdles as his 

appointment came at a 

time when the banking 

sector especially foreign 

lenders are going through 

tough time due to high 

lending rate and the Eurozone 

crisis. 

To address the crisis, Vijay 

Mallya wrote "All junior staff 

will be paid before Easter i.e. 

on Wednesday April 4 th . All 

Pilots and Engineers will be 

paid on Monday April 9 th and 

Tuesday April 10 th " 

CORPORATE GOVERNANCE 

LESSONS BY ADI GODREJ 

The Ministry of Corporate Affairs has set up a committee 

headed by Adi Godrej, Chairman of Godrej 

Group to design a framework for the highest quality 

of corporate governance in the country. The group 

of members will draft a comprehensive policy structure 

which will allow the committee to govern companies 

without making any significant changes on their internal 

strategy. The committee is expected to make its recommendation 

within six months from the date of its first 

meeting. The committee will hold meetings with stakeholders 

in the corporate sector, academicians and public 

before finalising its recommendation. Other members 

of the committee are Kiran M Shaw (Biocon ltd), Sidhrath 

Birla (FICCI), M K Chauhan (Asian Center for Corporate 

Governance and Sustainability) and more. 

PHOTO : SANJAY SOLANKI 

GAME OF MOOLAH 

We all know that cricket is 

religion in India but 

cricket is also equivalent 

to money. The recent bidding to 

bag broadcasting right of Indian 

cricket matches in India has 

proved that. The contract with 

Nimbus would be terminated in 

July 2012. In a bidding, Star TV has 

bagged the right with magnum 

opus deal which is valued at 

Rs.3,851 crore ($750 million) to 

cover 96 matches in the coming six 

years. This simply shows that Star 

has to pay Rs.40 crore ($7.86 million) 

for each international match 

which is twenty per cent higher 

than what Nimbus used to pay — 

Rs.32.5 crore ($6.38 million) per 

match. Star Group's India CEO 

Uday Shankar is very happy with 

the deal and promised to provide 

better experiences to audiences. 

THE KING OF GOOD TIMES HAMPERED 

The King of the Good Times and the largest airline by 

number of passengers, Kingfisher Airlines had a very 

tough time during last four months. Since November, 

the Service and Income Tax departments have frozen all bank 

accounts as the airline owes Rs 76 crore to the department. 

In addition to that it has to pay nearly Rs 60 crore to the IT 

department. Consequently, it was not able to make payment 

of salaries to its employees in the same period. The scenario 

worsened by the first week of April, 2012 when the employees 

threatened to go for a strike if their dues are not paid, at the 

earliest. But Vijay Mallya addressed the whole issue and 

wrote a letter addressing all the employees of the company 

and promised to clear all the dues of all the staffs by April 4, 

2012 and others by April 10, 2012. 


KICK OFFS 

YOGESH BANSAL 

“WE HAVE TO GO A LONG WAY” 

YOGESH BANSAL, FOUNDER OF APNACIRCLE, EXPLAINS TO CYCBTH THE VARIOUS WAYS HE ADOPTED 

IN ORDER TO FIND A FOOTHOLD IN INDIA IN AN EXCLUSIVE INTERVIEW WITH AMIR HOSSAIN 

Yogesh 

Bansal, 

Founder 

of Apna 

Circle 

From USA to India, nothing was easy and all seemed sulking. 

Yet, with determination, hard work and vision, 

growth is meant to be achieved. Yogesh Bansal completed 

his Masters from University of North Carolina and 

before stepping into the world of entrepreneurship, he had worked 

with McKesson Inc, USA. In March, 2006, he founded ApnaCircle. 

com. The company's core competency lies in fulfilling professional 

as well as social networking needs of the vast Indian population 

and has succeeded in nurturing a lot many careers. And 

with new ventures in fold, it certainly will bring a boom into the 

professional networking world. 

How did the concept of ApnaCircle come into being? 

Coming from USA, the concept of social networking was 

not new to me and I was always very fascinated and at the 

same time motivated enough to venture into the same. 

After moving to India, I witnessed that the Indian population 

is still deprived of this opportunity of getting to know 

the professional world through a social networking platform. 

I carried out a research with the help of questionnaire 

survey and found that the youth preferred using tools 

like social media as a better way to interact. They rated 

their career as the highest priority followed by friends and 

then family came at third position. It was then that I decided 

to create a professional website ApnaCircle with social 

elements in it to cater to the need of the society. 

What researches have you conducted before 

launching ApnaCircle? 

At first, I was quite circumspect about whether it will work 

in India or is India ready for my product? But I decided to 

follow my instinct and we are a brand today. I think it was 

an intelligent decision that I took long back because today 

social networking is a rage. Entire world is on Facebook, 

even the government has portal on it, so if I would have 

launched my product now, it would have been a failure. 

Currently, we have a customer base of 3 million. 

Despite pre-launch market research generating 

positive response from the target consumer, in many 

cases the product failed miserably. So how did you 

convince yourself? 

No research can give you all the answers, all you get is an 

overview from the research and you need to keep on innovating 

your product in order to survive in the market. 

Initially all the emails of users were routed to my mail box 

and I used to revert on all of them. It helped me understand 

the consumer, their needs and what exactly they want from 

my product. I still think that we have only managed to 

cater to 5-10 % of social media requirement and there is 

90% left to be done. We have to go a long way. 

How did you convince the investors? 

I was fully convinced and put all my money into the venture. 

I would have become completely bankrupt if anything 

went wrong. So that’s the confidence I had and if somebody 

see that you have put all your money in this venture – he 

will automatically get convinced. We don’t need money for 

survival now but we need money for expansion. 

You have started ApnaCircle in India and also some 

other ventures in USA, which country is better in your 

opinion to start a business? 

India and China are big markets with respect to their demographic 

dividend and it gives you a great opportunity 

as far as a start up is concerned. Whereas in USA, the market 

is saturated and tough. So, either you have to come up 

with a totally new and innovative product or the chances 

of survival becomes bleak. There was a time in USA, when 

people use to get loans merely by showing the business 

plan but now the procedures have been made more stringent. 

In India, we have smart coders which are available at 

a much lesser price as compared to USA. India is growing 

now and you will see many new innovative products coming 

from India in the next few years. 

Have you ever come across a situation when you 

thought of giving up? 

If you have faith in your product, you will never give up. 

Life is only one and giving up is always considered the 

easiest thing to do. At the worst, you might become bankrupt 

but still you will have that peace in the mind that you 

tried your level best. I have been through all these phases 

but am proud that I never for once thought of it and I want 

all the young entrepreneurs to simply follow their instincts 

and success will come their way. 


MIDDLE ORDER 

AJIT ANDHARE 

“IF YOU ARE PASSING 

THROUGH HELL, 

JUST KEEP GOING” 

AJIT ANDHARE, CEO, COLOSCEUM 

MEDIA – FAST EMERGING AS ONE OF 

INDIA’S LEADING INDEPENDENT MULTI- 

GENRE PRODUCERS, REVEALS HOW DID 

IT ALL START TO MRINMOY DEY 

Starting his career as management trainee with Unilever 

India in 1995, Ajit Andhare worked across several 

Unilever businesses from Feeds to Detergents 

and was posted to Unilever Thailand in 2007 as Regional 

Activation Director in Hair care for Asia Pacific region. 

He founded Colosceum Media in 2007 successfully building 

it into one of India’s leading content development & Production 

Company with landmark shows such as Wheel Smart 

Srimati series, Splitsvilla franchise, Jai Shri Krishna & Masterchef 

India. 

To start with, I would like to know the start up idea 

of Colosceum Media. 

It was combination of two to three factors. Having 

worked in a large corporate and I realised the opportunities 

that is there in growing India. Inspired by various 

enterprises being floated by young entrepreneurs, I 

thought of building something for which I am not that 

experienced. The only corporate in this sector was Endemol, 

which is a MNC and therefore I thought that 

there is a clear scope. My focus was to create a multinational 

company. I really got an opportunity for Indian 

content market. I was looking at the size of the production 

in India. How it is spread between various categories 

like fiction category, animation and then I looked 

at how these companies evolved during the period of 

time. I understood the market structure and players. 

What kind of hurdle you faced during the start-up 

phase of the company? 

We started from the scratch and we had no background 

in this industry. We needed to build contacts and also 

faced competition from already established companies. 

The other hurdle was that people’s perception was that 

we are related to Network 18 and we had to make them 

understand that we have our own independent operations. 

We had to convince them the Network 18 is only 

a part of venture capital. We have been trying to overcome 

these perception issues and now we are dealing 

with the industry. 

What are the changing trends that you are seeing in 

"WE STARTED FROM THE SCRATCH AND WE 

HAD NO BACKGROUND IN THIS INDUSTRY 

AND ALSO FACED COMPETITION FROM 

ALREADY ESTABLISHED COMPANIES" 

the industry? 

The industry was becoming more professional than it 

used to be and the relationships now play less important 

role than they used to play earlier. Additionally, budgets 

are becoming bigger, scope programming and productions 

are also getting bigger. We are also seeing a lot 

of interaction from the people who are out of this industry 

and they are filling the gap. 

Did you ever think of giving up? 

If you are passing through hell, just keep going. Tough 

times are always there in everyone’s life and if you continue 

to ride on it you will come out of it. 

What are the upcoming shows that we can see in the 

near future? 

We are currently producing some contents. We will also 

be going to US to shoot ROADIES. We are going to San Fransisco, 

Los Angeles and Vegas, so that is something which 

is coming up. We are also planning to produce episodes 

Jaanbaaz (a reality show). There are three to four shows 

on the regional fronts that are in the pipeline. 

Ajit 

Andhare, 

CEO, 

Colosceum 

Media 

count your chickens before they hatch 9 

april 2012

INFOGRAPHICS 

BEYOND NUMBERS 

CHANGE MANAGEMENT HAS BECOME A SIGNIFICANT PART OF TODAY'S CORPORATE 

WORLD WITH CEOS RESORTING TO THIS STRATEGY TO STAY AHEAD OF COMPETITION. 

AMIR HOSSAIN DOES SOME NUMBER CRUNCHING TO GRAPHICALLY PROVE THE 

EFFECTIVENESS OF CHANGE MANAGEMENT IN THE SUCCESS RATE OF A PROJECT 

US and Canada 

World 

Other Emerging Markets 

Brazil, Russia and India 

Japan 

Source: Booz & Company 

Merger 

Forced 

Planned 

0% 5% 10% 15% 20% 

CEO Turnover 

GROWTH VS NEW PRODUCTS/SERVICES 

The main objective of any corporate entity is to maximise 

their shareholders’ wealth. Diversification has always been 

one of the most extensively practiced method to increase 

profitability. The Global CEO Survey 2012 by PricewaterhouseCoopers 

(PwC) found that CEO's interest in driving 

growth with new products or services has increased over 

the past few years. In 2007, only 13% of CEOs added a new 

product/service in their current catalogue to increase 

their bottom-line. Taking a cue from past, around 28% of 

all CEOs want to adopt this formula of growth in 2012. 

CEO (CHIEF EXECUTIVE OFFICER) 

TURNOVER ACROSS THE GLOBE 

According to a study by Booz & 

Company, 11.6% of the world’s 

2,500 biggest publicly listed companies 

got new bosses in 2010. The 

CEO turnover rate fell below 12% 

for the first time since 2003 and 

was substantially lower than the 

14.3% rate in 2009. At nearly 19%, 

the turnover rate was highest in Japan. 

But much of this churn was 

because of people retiring – 

planned succession accounted for 

nearly four-fifths of total changes. 

CHANGE MANAGEMENT PRACTICES 

With effective 

Change 

Management 

With poor 

Change 


95% 

reported the objectives 

or the change 

were achieved 

16% 

reported the objectives 

or the change 

were achieved 

71% 

reported the 

change finished 

on time 

16% 

reported the 

change finished 

on time 

Source: Prosci best practices in Change Management benchmarking report 2009 

35% 

30% 

25% 

20% 

15% 

10% 

5% 

0% 

2007 2008 2009 2010 2011 2012 

Source: Global CEO Survey, PWC 

Percentage of CEOs in driving growth with new 

products or services over time 

Prosci's sixth global benchmarking study, 

since 1998, reports the insights and lessons 

learned from business leaders and change professionals 

in 575 organisations across 65 countries. 

The 2009 report found that there is a significant 

correlation between Change Management 

effectiveness and meeting objectives & 

staying on schedule. Effective Change Management 

is strongly correlated with success of 

achieving business outcomes and staying on 

schedule & budget. Change projects that include 

effective Change Management are five 

times more likely to meet objectives and 

achieve desired business results. 


CHANGE MANAGEMENT 

EFFECTIVENESS OF CHANGE 

MANAGEMENT 

Effectiveness of change management 

plays a pivotal role to enhance the success 

of any project. Moreover, change 

management has direct correlation 

with the success rate of the project. In 

addition to that, success rate of IT 

projects and non-IT projects vary with 

the effectiveness of change management. 

A study by Interface reveals that 

zero percent change management effectiveness 

may lead to success rate of 

33% and 67% in IT project and non-IT 

project respectively. The survey further 

explores that 100% success rate is 

only possible if an organisation either 

IT or non-IT put 100% change management 

effectiveness during execution of 

the project. 

Source: Interfaces 

Source: Interfaces 

4.9% 

Women 

Board 

Directors 

3% to 6% 

Women in Senior 


22.6% 

Women Employed 

by Organisations 

36% 

Women in the 

Labor Force 

100% 

80% 

60% 

40% 

20% 

0% 

IT Project Success Rate (%) 

Non-IT Project Succes Rate (%) 

0% 25% 50% 75% 100% 

Change management effectiveness 

LEADERSHIP GAP IN INDIA 

The whole world has realised the significance of 

women participation in every fields especially politics 

and corporate world. But, India is still lagging behind 

as far as women participation is concerned particularly 

in the Corporate world. The gender gap is 

quite wide in India Inc across the ladder. Only 36% of 

women labour force is available in India while only 

22.6% women are employed in organised institutions. 

The scenario gets worse when we move to the top 

management level from bottom. The gender gap in 

managerial position is very stark with merely 3% to 

6% of women able to reach senior management level 

and only 4.9% women are part of board of directors 

in Indian companies. 

WOMEN LEADERS IN 

FORTUNE 500 COMPANIES 

Contrary to populist perception, gender 

gap not only exists in India but can be 

seen among the Fortune 500 companies. 

Women’s representation in Fortune 500 

leadership positions has stagnated in recent 

years. Women's representation as 

executive officers and board members 

has slightly increased by 0.60% and 0.90% 

respectively from 2009 to 2011. 10.00% 

2009 2010 2011 

Source: Catalyst 

16.00% 

15.00% 

14.00% 

13.00% 

12.00% 

11.00% 

Percentage of women representation in Board Seats 

Percentage of women Executive Officers 



CAN LEADERS CHANGE 

THEIR BEHAVIOR? 

A SPECIFIED FOCUS ON DESIRED BEHAVIOUR 

AND CLASSIFYING KEY AREAS OF BEHAVIOURAL 

CHANGE IS MANDATORY FOR OPTIMUM RESULT 


Author, Professor and Leadership Coach 

People often ask, “Can executives really change 

their behaviour?” The answer is definitely yes. 

If they didn’t change, I would never get paid 

(and I almost always get paid). 

The mission of behaviour coaching is to help leaders 

in achieving a positive change for themselves, their 

people and their teams. There are several different 

types of coaching including strategic coaching, lifeplanning, 

or organisational change but executives often 

engage themselves in behavioural coaching as it 

only focuses on changing leadership behaviour for individuals 

and teams. It enhances the leaders ability to 

deal better with ambiguity and aims to maintain satisfactory 

relationships with the Board, shareholders and 

employees. It also helps to become more creative and 

reflective. But these types of coaching can only be successful 

with executives who are willing to make a sincere 

effort to change and who believe that this change 

will help them to become better leaders. 

INVOLVING KEY STAKEHOLDERS 

As a behavioural coach, I have gone through three 

distinct phases. In phase one, I believed that the 

coach was the key variable in behavioural change. 

But I was wrong as a research done by me and my 

friend over 86,000 participants on changing leadership 

behaviour observed that the key variable for 

change is not the coach or advisor. It is person being 

coached and their co-workers. 

In phase two, I spent most of my time focusing on 

my coaching clients. This was much better. I slowly 

learned that a hard working client was more important 

than a brilliant coach. 

"EXECUTIVES OFTEN ENGAGE THEMSELVES 

IN BEHAVIOURAL COACHING AS IT ONLY 

FOCUSES ON CHANGING LEADERSHIP 

BEHAVIOUR FOR INDIVIDUALS AND TEAMS" 

In phase three (where I am now), I spend most of my 

time not with my coaching clients but with the key 

stakeholders around my client. 

How do I involve key stakeholders? I ask them to 

help the person that I am coaching in critically important 

ways: 

Let go of the past: When we continually bring up 

the past, we demoralize people who are trying to 

change. Whatever happened in the past happened. 

It cannot be changed. By focusing on a future that 

can get better (as opposed to a past that cannot), the 

key stakeholders can help my clients improve. (I call 

this process feedforward, instead of feedback). 

Be helpful and supportive, not cynical, sarcastic 

or judgmental: If my clients reach out to key stakeholders 

and feel punished for trying to improve, they 

will generally quit trying. I don’t blame them! Why 

should any of us work hard to build relationships 

with people who won’t give us a chance? 

Tell the truth: I don't want to work with a client, 

have them get a glowing report from key stakeholders 

and later hear that one of the stakeholders said, 

“He didn’t really get better, we just said that”. This 

is not fair to my client, to the company of to me. 

Pick something to improve yourself. My clients are 

very open with key stakeholders about what they are 

going to change. As part of our process, our clients 

ask for ongoing suggestions. I ask the stakeholders 

to pick something to improve and to ask for suggestions. 

This makes the entire process “two-way” instead 

of “one way”. It helps the stakeholders act as 

“fellow travellers” who are trying to improve, not 

“judges” who are pointing their fingers. It also greatly 

expands the value gained by the corporation in the 

entire process. 

STEPS IN THE BEHAVIOURAL COACHING PROCESS 

The following steps outline my behavioural coaching 

process. Every leader that I coach has to agree to implement 

the following steps. If they don’t want to do this, 

I make no negative judgments. There are many valu- 


april 2012


able things that leaders can do with their time other 

than work with me! Our research indicates that if leaders 

won’t do these basic steps, they probably won’t get 

better. If they will do these basic steps, they almost 

always get better! 

Involve the leaders being coached in determining the 

desired behaviour in their leadership roles. Leaders 

cannot be expected to change behaviour if they don’t 

have a clear understanding of what desired behaviour 

looks like. The people that I coach (in agreement 

with their managers) work with me to determine 

desired leadership behaviour. 

Involve the leaders being coached in determining key 

stakeholders. Not only do clients need to be clear on 

desired behaviours, they need to be clear (again in 

agreement with their managers) on key stakeholders. 

There are two major reasons that people deny the 

validity of feedback, wrong items or wrong raters. By 

having my clients and their managers agree on the 

desired behaviours and key stakeholders in advance, 

I help ensure their “buy in” to the process. 

Collect feedback. Determine key behaviours for 

change. As I have become more experienced, I have 

become simpler and more focused. I generally recommend 

picking only 1-2 key areas for behavioural 

change with each client. This helps ensure maximum 

attention to the most important behaviour. My clients 

and their managers agree upon the desired behaviour 

for change. Have the coaching clients respond 

to key stakeholers. The person being reviewed 

should talk with each key stakeholder and collect additional 

“feedforward” suggestions on how to improve 

on the key areas targeted for improvement. In 

responding, the person being coached should keep 

the conversation positive, simple and focused. When 

"LEADERS CANNOT BE EXPECTED TO 

CHANGE BEHAVIOUR IF THEY DON’T HAVE A 

CLEAR UNDERSTANDING OF WHAT DESIRED 

BEHAVIOUR LOOKS LIKE" 

mistakes have been made in the past, it is generally 

a good idea to apologize and ask for help in changing 

the future. I suggest that my clients listen to stakeholder 

suggestions and not judge the suggestions. 

Review what has been learned with clients and help 

them develop an action plan. My clients have to agree 

to the basic steps in our process. On the other hand, 

outside of the basic steps, everything that I give my 

clients is a suggestion. I am much more of a facilitator 

than a judge. I usually just help my clients do what 

they know is the right thing to do. 

Develop an ongoing follow-up process. Ongoing follow-up 

should be very efficient and focused. Questions 

like, “Based upon my behaviour last month, 

what ideas to you have for me next month?” It can 

keep a focus on the future. Within six months conduct 

a two-to-six item mini-survey with key stakeholders. 

They should be asked whether the person 

has become more or less effective in the areas targeted. 

Review results and start again. If the person being 

coached has taken the process seriously, stakeholders 

almost invariably report improvement. Build on that 

success by repeating the process for the next 12 to 

18 months. This type of follow-up will assure continued 

progress on initial goals and uncover additional 

areas for improvement. Stakeholders will appreciate 

the follow-up. No one minds filling out a focused, 

two-to-six-item questionnaire if they see positive 

results. The person being coached will benefit from 

ongoing, targeted steps to improve performance. 

THE VALUE OF BEHAVIOURAL COACHING 

Behavioural coaching is the widely used type of coaching. 

This process can be very meaningful and valuable 

for top executives. These are the people who have great 

careers in front of them. Increasing effectiveness in 

leading people can even have greater impact if it is a 

20-year process, instead of a one-year program. 

People often ask, “Can executives really change their 

behaviour?” The answer is definitely yes. At the top of 

major organizations even a small positive change in 

behaviour can have a big impact. From and organisational 

perspective, the fact that the executive is trying 

to change anything may be even more important than 

what the executive is trying to change. With top executives, 

behaviour may be the only leadership attribute 

that can be changed in a cost-effective manner. 

At that level it is usually “too late” for technical or 

functional education. 


april 2012


THE CHARACTER OF 

LEADERSHIP 

THE DEVELOPMENT OF LEADERSHIP BEGINS WITH 

CHARACTER AND IS A LIFELONG PURSUIT IN WHICH 

TIME AND EXPERIENCE MATTER SIGNIFICANTLY 

PHIL EASTMAN 

Author of 'Character of Leadership' 

It troubles me that it will only take a few hundred 

words to share the profound reality that leadership 

is inextricably tied to individual character. Such an 

important subject should take volumes. However, 

the brutal and simple reality is that after countless hours 

of consulting, coaching and advising, I become more convinced 

with each interaction that success is both enabled 

and stifled by leadership, and that leadership is at its centre, 

is a matter of personal character. In our rush to find 

ever-increasing efficiency and effectiveness in organizations, 

we have lost sight of the power of great leadership 

and what it takes to develop that leadership. We can, however, 

regain our vision by proactively and positively developing 

the character of those expected to lead. But first, 

it is critical to share my definition of leadership - "Leadership 

is the ability to move a group of people through noncoercive 

means to an end that is, in the long-run best 

interest of everyone." 

It would be nice if becoming an effective leader were 

easier. It would be nice if all the ideas and techniques 

you have read about or experienced in workshops were 

as simple to use as the author or presenter made them 

seem. However, the real world is something else again. 

Becoming a great leader is hard work. Being a leader is 

a tremendous responsibility. The challenges of leadership 

are numerous, the demands are steep, but the rewards 

are magnificent. 

Teachers of leadership have too often softened the reality 

of leadership, boiling it down to formulas, tips and 

tricks. Leadership development is a lifelong pursuit in 

which time and experience matter greatly. Like any other 

long-term process, it is fraught with pain and exhilaration. 

To complicate the process further, the development 

of leadership ability does not even begin with leadership. 

"CURRENT FINANCIAL CRISES ARE MATTER 

OF CHARACTER OF LEADERS WHO FELL PREY 

TO THE THREAD OF GREED THAT WEAVES 

THROUGHOUT CAPITALISTIC SYSTEMS" 

It begins with character. The ability to lead is built on a 

foundation of character. Every leader leads from his or 

her character, and, consequently, the shaping of a leader’s 

character is paramount for any organization looking to 

distinguish itself. 

In 1987, I joined a failing company that was part of a 

crippled industry: I went to work as a commercial lending 

officer for a savings and loan. I was young, my career was 

young, and I was fortunate that this move was not the end 

of my banking career. Nonetheless, motivated to be part 

of the industry’s newly expanded powers in commercial 

lending, I joined the staff of a savings and loan. Little did 

I understand that the recently granted lending powers 

were a final attempt on the part of regulators to save an 

industry that was terminally ill. The savings and loan industry 

had been in trouble for years, and the demise of 

that sector ultimately cost the US tax payers $150 billion 

in 557 institutional failures. The major causes of the industry’s 

collapse were the changing market conditions, 

over-investment in single-family residential mortgages, 

expanded regulatory authority and weak regulatory oversight. 

Of those four major causes, only the first is economic. 

The other three relate to leadership. The concentration 

of investment in mortgages, the expansion of 

powers to weak institutions, and continued poor regulatory 

oversight were all leadership decisions. We have seen 

many similar leadership decisions in our current financial-sector 

crisis. 

Here is the key: The leadership decisions made as part 

of both the past and the current financial crises have not 

really been a matter of leadership ability. They are a matter 

of character. Leaders did not show the strength to 

stand against the thread of greed that weaves throughout 

capitalistic systems. Neither did they demonstrate a willingness 

to learn from past mistakes. 

Beyond this illustration, the daily headlines and your 

own files overflow with examples of leaders whose character 

shortcomings crippled their ability to lead effectively. 

Based on those numerous examples, it would be 

easy to approach character-based leadership development 

from a position of fear, with an eye to toward mitigating 

the risk that leaders with poor character repre- 


PHIL EASTMAN 

sent. We see this approach in the endless codes of conduct 

produced to keep people from doing the wrong things. 

The brutal reality is this: Policies, processes, and regulations 

will not curb the behaviour of leaders whose character 

is deficient. 

The risk-mitigation approach to character and leadership 

development is appealing, because it is easier to see 

character clearly when it is fractured, rather than when 

it is whole. However, the more powerful (and more difficult) 

approach is not to focus on the endless tales of 

failure, but to choose a character model to serve as the 

basis for your leadership development efforts. 

The Character of Leadership model has two basic propositions. 

First, leadership is inside out; your character 

gives rise to your leadership. Since character fuels leadership, 

the exploration of character is of paramount concern 

to every serious leader and to every organization serious 

about leadership development. Second, context is everything. 

This means that every leadership setting is different, 

and the leader’s behaviour must adjust to fit the 

group and the situation that the leader is part of and responsible 

for. 

The challenge with the ancient model of human character 

was to relate it to leadership and then to articulate 

a set of behaviours based on each element that would allow 

leaders to begin a character-based leadership development 

journey. To do this, each of the elements is described in 

leadership terms. From a leadership perspective: 

Faith is leading from a clear set of positive core values 

that are demonstrated through leadership actions. 

Justice is leading by doing what is right even when it is 

difficult and costly; it is leading in a selfless manner and 

fostering personal and team accountability. 

Temperance is leading with personal humility, passion 

and self-control. 

Hope is leading by sincerely and convincingly articulating 

a bright future, especially when the immediate circumstances 

look bleak. 

Wisdom is leading by effectively applying accumulated 

knowledge and experience to current situations. 

Love is leading by demonstrating a genuine concern, 

care, and compassion for people. 

Courage is leading by boldly seizing opportunities and 

firmly dealing with challenges. 

Beyond these descriptions, the Character of Leadership 

model contains thirty-six behaviours that serve as a beginning 

for a character-based leadership program. Understand 

that the seven elements and the thirty-six behaviors 

cannot be the whole of what leadership is or 

should be. There are other leadership abilities specific to 

your organization that will need to augment the model. 

At most, the Character of Leadership model serves as 

the beginning of your organization’s character-based 

leadership journey. At the least, the model should spark 

discussion in your organization about whether your 

leadership development program contains a strong character 

component. As we grapple with the challenges and 

complexities in today’s multi-dimensional, global organizations, 

I hope that using the Character of Leadership 

model in your leadership development program will 

provide a beacon from which you can navigate, because 

the challenges we face today are not economic, environmental, 

social, or legal; they are challenges of character 

and leadership. 



CULTURE CONTROLS 

COMMUNICATION 

GLOBAL BUSINESSES ARE HIGHLY AFFECTED BY 

INNUMERABLE CULTURAL DIFFERENCES AMONG 

VARIOUS NATIONALS 

CAROL KINSEY GOMAN 

Keynote Speaker, Executive Coach and Leadership Consultant 

Business leaders know that intercultural savvy 

is vitally important – not just because they 

have to deal increasingly with globalization, 

but also because the work force within their 

own national borders is growing more and more diverse. 

Every culture has rules that its members take for 

granted. Few of us are aware of our own biases because 

cultural imprinting is begun at a very early age. And 

while some of culture’s knowledge, rules, beliefs, values, 

phobias and anxieties are taught explicitly, most is absorbed 

subconsciously. 

Of course, we are all individuals, and no two people 

belonging to the same culture are guaranteed to respond 

in exactly the same way. However, generalizations 

are valid to the extent that they provide clues on 

what you will most likely encounter – and how those 

differences impact communication. Here are three such 

generalizations. 

Cultures are either high-context or low-context. 

Every aspect of global communication is influenced by 

cultural differences. Even the choice of medium used 

to communicate may have cultural overtones. It has 

been noted that industrialised nations rely heavily on 

written messages than oral or face-to-face communication. 

Definitely, US, Canada, UK and Germany exemplify 

this trend. But Countries like Japan, which has 

access to the latest technologies, still relies more on the 

latter. The determining factor in medium preference 

may not be the degree of industrialization, but rather 

whether the country falls into a high-context or lowcontext 

culture. 

Cultures are either sequential or synchronic. Some 

cultures think of time sequentially – as a linear commodity 

to “spend,” “save,” or “waste.” Other cultures 

"OF COURSE, WE ARE ALL INDIVIDUALS, 

AND NO TWO PEOPLE BELONGING TO THE 

SAME CULTURE ARE GUARANTEED TO 

RESPOND IN EXACTLY THE SAME WAY" 

view time synchronically – as a constant flow to be experienced 

in the moment. 

In sequential cultures (like North American, English, 

German, Swedish, and Dutch), business people give full 

attention to one agenda item after another. In many 

other parts of the world, professionals regularly do several 

things at the same time. 

In synchronic cultures (including South America, 

southern Europe and Asia) the flow of time is viewed 

as a sort of circle – with the past, present, and future all 

inter-related. This viewpoint influences how organizations 

in those cultures approach deadlines, strategic 

thinking, developing talent from within, and the concept 

of “long-term” planning. 

Cultures are either affective or neutral. With much 

angry gesturing, an Italian manager referred to the idea 

of his Dutch counterpart as “crazy.” The Dutch manager 

replied. “What do you mean, crazy? I think this is 

a viable approach. And calm down! We need to analyze 

this, not get sidetracked by emotional theatrics.” At that 

point, the Italian walked out of the meeting. 

In international business dealings, reason and emotion 

both play a very critical role. Which of these 

dominates depends upon whether we are affective 

(showing emotions) or emotionally neutral in our approach. 

Members of neutral cultures do not telegraph 

their feelings, but keep them carefully subdued. In 

cultures with high affect, people show their feelings 

plainly by laughing, smiling, grimacing, scowling – 

and sometimes crying, shouting, or walking out of the 

room. This doesn’t mean that people in neutral cultures 

are cold or unfeeling. But in the course of normal 

business activities, they are more careful to monitor 

the amount of emotion they display. According to a 

research, emotional reactions were found to be least 

acceptable in Japan, Indonesia, UK, Norway and the 

Netherlands – and most accepted in Italy, France, the 

US and Singapore. In today’s global business community, 

there is no single best approach to communicating 

with one another. The key to cross-cultural success 

is to develop an understanding of, and a deep 

respect for, the differences. 


COVER STORY 

CORPORATE 

TRANSFORMERS 

TRANSFORMATIONAL LEADERS CAN EFFECTIVELY INCREASE 

ORGANISATIONAL EFFICACY AND PERFORMANCE AND CAN 

EFFICIENTLY EXECUTE THE CORPORATE DOCTRINE OF TRINITY. 

BUT THIS IDIOSYNCRATIC FACET OF LEADERSHIP IS IGNORED 

TIME AND AGAIN. MRINMOY DEY OF CYCBTH EXPLICATES 

WHY AN ORGANIZATION MUST EVOLVE AND TRANSFORM IN 

ORDER TO SUSTAIN IN THIS CORPORATE WORLD 


TCOVER STORY 

he Dodo, a flightless bird found in Mauritius islands in 

the Indian Ocean, became extinct 200 years ago. It had 

an unfit structure and was unable to fly. Till the time 

the island was isolated, they survived. But once superior 

species like human, pigs and monkeys appeared 

there, the existence of the species was endangered. 

Eventually, it failed to evolve with change in surroundings, 

weather and became prey to other species. This 

one species is apt representation of 21st century’s lumbering 

and stubborn examples that are reluctant to 

adaption in complex changing business environment 

and thus get extinct in no time. 

Constant and revolving transformation is the motif 

of the corporate world today. Outrageously high target 

for revenues and market share, a bold vision based on 

a striking business model or groundbreaking technology, 

major strategic moves like acquisition, joint venture 

or merger – are deemed to be quintessential for the 

sustainability of a company in the long-run. In fact, 

change is all around us, increasing in velocity and driven 

by myriad external, internal, evolutionary and revolutionary 

forces. 

Contrary to the traditional belief, no organization is 

immune. All companies go through a turbulent time 

which might be due to change in the marketplace or 

technologies or economic condition or introduction of 

substitutes or due to stiff market competition. At such 

situations, coping with this turmoil is the key to remain 

competitive. One of the detrimental factors of successful 

transformation is timely interventions of various 

change programs as any delay may prove to be too 

decisive to resurrect from downward spiral. However, 

any such blow does not come without any early omen. 

The key would be to spot these financial, operational 

or market triggers early and should be dealt with properly. 

In the words of Caroline Schoeder, “Some people 

change when they see the light, others when they feel 

the heat.” 

Once the need for change is realised, you need to examine 

a company very broadly before determining what 

really needs transformation and what merely needs intensifying 

or modification. If a company is not performing 

well does not necessarily mean all the processes are 

imperfect but only implies that they do not execute the 

important things with enough intensity. Even highperforming 

companies do many things imperfectly. Any 

change program with more than one page manifesto is 

bound to fail. Therefore, the eventual path of action 

should be narrow. While the exact nature of transformation 

is specific to each company, most change programs 

count your chickens before they hatch 18 april 2012 

include specific parameters like debt reduction, cost 

control, profitability measures to name a few, that defines 

the success of the program. For example, return 

on net asset became the metrics to measure successful 

transformation at Staples – a US-based company dealing 

with office supplies. However, going against the wind 

some companies did not officially pronounce any formal 

transformation program but they made such sweeping 

changes that it became obvious that a change program 

is under way – PepsiCo is a case in point. When Pepsi 

experienced an inflection point, they quickly sold off 

the restaurant business in 1997 and divested its bottling 

assets in 1999. Then they acquired Quaker Oats Co. and 

South Beach Co. making the intention of diversifying 

into health-food business crystal clear. In fact, since 

2000, Pepsi has heavily invested in its international operation 

and saw its revenue getting doubled since the 

start of the operation. 

As a matter of fact, there is no all binding scientific 

formula of how transformation should be done. Employee 

resistance is one of the main reasons behind 

unsuccessful change processes. To eliminate resistance 

four basic conditions need to be fulfilled. 

Firstly, employees must see the point of change and 

agree with it. You need to have a compelling story with 

a balance of both positive and negative aspects to generate 

real energy. On the one hand, a story focused on 

what’s wrong invokes the ‘blame game’ and fails to 

evoke and engage people’s passion and experience. On 

WE NEED TO EXAMINE A COMPANY BROADLY BEFORE DETERMINING WHAT 

REALLY NEEDS TRANSFORMATION AND WHAT MERELY NEEDS INTENSIFYING

CORPORATE TRANSFORMERS 

Left: Charles 

Drawin – biggest 

advocator 

of change for 

survival & Right: 

Meg Whitmen 

– new CEO in 

charge of transformation 

of HP 

the other hand, overemphasizing on the positives might 

lead to dilution of aspirations and impact. Jack Welch, 

former CEO at GE, did strike a perfect balance between 

‘What’s wrong here?’ – poorly performing businesses, 

silo-driven behavior, and ‘imagining what it might be’ 

– number one or two in the business, openness and accountability. 

Secondly, the employees must see the top management 

are behaving in the changed way. This is generally 

done through change of top management – the 

obvious reason being self-serving bias. Although 

change programs are not simultaneously initiated with 

a CEO change but it clearly indicates a break from the 

past including prior strategies. For example, Hewlett- 

Packard Co. last year (September, 2011) appointed Meg 

Whitmen, the former eBay Inc. Chief, who transformed 

eBay into a global online retail powerhouse, as the new 

President and CEO. She replaced Leo Apotheker who 

slashed sales forecasting several times, backtracked on 

promises to integrate mobile software into devices and 

more importantly even struggled to halt an outrageous 

plunge of around 50% in share price. The new CEO is 

expected to backtrack many of its major decisions 

taken during Apotheker’s tenure including the acquisition 

of British software maker Autonomy Corp Plc. 

which investors claim to be overpriced acquisition. 

Avon, an US based Cosmetic company has named Sherilyn 

McCoy – a veteran long time Johnson & Johnson 

excecutive, as the new CEO a couple of days back. It 

clearly indicates that the company isn’t really interested 

in Coty’s $10 billion takeover offer and would 

instead focus on transformation programs to arrest the 

slide in profit declines. 

Thirdly, there must be some incentives for the employees 

for changing. Motivation towards accepting 

change depends upon the impact of the transformation 

program on society (building community, stewarding 

resources), customer (for instance providing superior 

service), company and its stakeholders, working team 

and above all the impact on individual employees (like 

career development, paycheck) to name a few. If the 

change program covers all these aspects then it is bound 

to unleash tremendous amount of energy which would 

otherwise remain latent in the organization. Small and 

unexpected rewards can have disproportionate effects 

on employees’ satisfaction with a transformational program. 

While turning around Continental Airlines, the 

then CEO Gordon M. Bethune, sent an unexpected $65 

check to every employee when the company made it to 

top five for on-time airlines. 

Fourthly, employees must possess the skills required 

to make the desired change. A company – planning to 

introduce a new technology that would reduce cost or 

improve operational efficiency, must train its employees 

beforehand to avoid resistance and the message should 

be given clearly leaving no room for speculation. 

All these are easier said than done. The success rate 

of change programs is considerably low as suggested 

by various researches. As per John Kotter’s research 

only 30 percent of change programs succeed. In 2008, 

a McKinsey survey of 3199 executives around the world 

prevailed that only one transformation in three actually 

succeeds. There are thousands of models and researches 

on how to make successful transformation. 

Although, these static and normative models are admittedly 

helpful in presenting a vision of what ‘good’ 

look like and identifying some of the changes that can 

be brought but rarely do they capture the dynamic 

nature of change. So what really does happen is that 

although the prescription is right but it goes all wrong 

in the implementation phase. Most of the time the reason 

for failure is that the focus is either too broad or 

too narrow which creates confusion and results in 

typically wasting time and energy and creating messages 

that miss the mark thus come up with frustrating 

unintended consequences. 

However, most critical factor behind any transformation 

is the change leaders. While most good managers 

try to keep things under control, the change agents are 

determined to shake up things and mainly depend on 

their market intelligence to get information about what 

the competitors are up to. They rarely apply standard 

off-the-shelf approaches and improvise on their past 

experience all the time. The key to remain competitive 

is constantly looking for the triggers and react quickly 

to keep their boats afloat in the right direction. Charles 

Darwin in his book ‘Origin of Species’ on ‘Theory of 

Evolution’ mentioned, “It is not the strongest of the species 

that survive, nor the most intelligent, but the one 

most responsive to change.” Perhaps, this is even more 

suited to the corporate world. 


COVER STORY 

“LEADERSHIP IS ALL ABOUT 

TRANSFORMATIONAL CHANGE” 

FOUNDER AND CHAIRMAN EMERITUS OF INFOSYS, N R NARAYANA S MURTHY, 

DIVULGES THE WAY HE TRANSFORMED INFOSYS IN AN EXCLUSIVE INTERVIEW WITH 

SRAY AGARWAL AND NIDHI GUPTA 

Narayana Murthy graduated 

with a degree in electrical 

engineering from National 

Institute of Engineering, 

University of Mysore. He completed 

his masters from IIT, Kanpur. He 

started his career with IIM, Ahmedabad. 

His entrepreneurial stint begun 

way back in 1976 when he started a 

company named Softronics but the 

venture failed to take off. He then 

joined Patni computers and finally in 

the year 1981, he founded Infosys. 

Today Infosys has its offices in 29 

countries and development centers in 

India, China, US, UK, Australia, Canada, 

Japan and many other countries 

and has an employee base of 145,088 

of 85 nationalities. 

When did you realize that you 

need a leadership change in the 

company and started building 

new generation leaders who can 

replace old generation leaders? 

Once the economy was liberalized 

in 1991, and we got listed in India 

in 1993 and got listed on NASDAQ 

in 1999, we became better known 

in the United States. More and 

more CFOs realized that there is a 

company who is going to grow, a 

company that is committed to the 

United States, it listed on our stock 

A LEADER THINKS OF SOMETHING 

THAT IS UNIMAGINED BY THE 

REST OF THE PEOPLE. FOR 

ANY LEADER TO SUCCEED, HE 

SHOULD BE WELL-ROUNDED IN 

THE BUSINESS OF LEADERSHIP 

exchange and therefore we should 

work with them. So when you 

combine the internet boom with 

the Y2K boom, this was a remarkable 

stand where there was excellent 

growth opportunity. Therefore, 

we realized that if the company 

has to grow rapidly, we need 

to develop the next generation 

leaders. In fact, we established our 

leadership institute in 2000. 

What were the key areas or skill 

set which you wanted to focus 

while inculcating or pre-planning 

these leaders? 

Leadership is all about transformational 

change. It is about making 

impossible, possible. A leader 

thinks of something that is unimagined 

by the rest of the people. 

Therefore, in order to help our 

younger people become such leaders; 

we realized that our institute 

has to depend on three important 

tenets: 

1.Our company is our campus: 

If you want good ideas to come 

from the people, then there should 

be a sense of pluralism, there 

should be an environment of 

openness, curiosity, questioning, 

enlightened democracy and this 

will happen only in a campus environment. 

2.Leaders thrive in a certain 

context: If we want our leaders to 

succeed in Infosys, they should be 

well-rounded in the business of 

leadership. They should understand 

our business. We believed 

that, for leadership training, our 

curriculum is our business. Leadership 

training will help them understand 

the intricacies of sales, 

finance, software development, 

and infrastructure building. 

3.Our leaders are our teachers: 

We felt that if we want our leaders 

for being trained to be successful, 

then they must listen to people 

who’ve actually handled the problems, 

issues, the dilemmas, and 

the success of the company. It was 

like a real time as well as context 

based training. They must understand 

the context of the company 

very well and in order to teach 

this, who has the best credibility 

than the leaders who are actually 

taking the company forward today. 

For example, I used to give a 

course on leadership, my style, my 

belief and my convictions. 

Please throw a light on some of 

the transformational changes 

brought by you in Infosys? 

I realized that immediately after 

the economic reform, many foreign 

companies started coming to 

Bangalore – IBM, Microsoft, Citibank 

etc., and if we wanted to 

grow, retain our people, and at 

the same time attract new people, 

then we have to transform the 

company. The shift was needed. 

We had to create a campus and we 

knew that no MNC would do it, 

not at that time at least. We decided 

to go slightly outside the 

city and create a green environment, 

create excellent offices, 

wonderful technology, and make 

sure that the employees are very 

comfortable. Many people were 

not very enthusiastic about it. 

This was a big transformation, 

which I would term as “transformation 

of mindset”. The second 


NARAYANA MURTHY 

THERE ARE ONLY TWO ESSENTIAL 

ATTRIBUTES FOR THE SUCCESS 

OF A COMPANY – INNOVATION 

AND MARKETING OF THAT 

INNOVATION 

challenge was that how are we going 

to compete with the big MNCs 

who were offering huge salaries? 

The only solution we could have 

for it was to go public and create 

Employee Stock Option Plan 

(ESOP) and no foreign company or 

an MNC would be able to compete 

with us. Democratization of 

wealth was a big change for Infosys. 

We were the first Indian company 

to go for CMM (Capability 

Maturity Model) level 4, we went 

for six sigma, we operated on 

Markham Boldrick’s Framework 

etc. It was a transformation of 

mindset into a globalised mindset. 

Further, to get listed on NAS- 

Narayana 

Murthy, 

Chairman 

Emeritus, 

Infosys 

DAQ was very important for us to 

be completely prepared in terms 

of financials. We voluntarily provided 

our financial results on a 

quarterly basis. We had to train 

ourselves in US gap, and make 

sure that we provide our results 

in both US GAAP and Indian GAAP. 

Later, we went on to provide the 

results according to eight GAAP. 

What was the biggest resistance 

that you faced and how did you 

resolve it? 

In 1998, we encountered that we 

were taking employees in a very 

large number and not all of them 

were well trained in their colleges, 

we had to scale up our training 

program, we felt the need of a 

residential training program. We 

required a big residential training 

campus and we had to go to Mysore 

for the same. Our educationalists 

were not very supportive at 

first because they never wanted 

to shift. I had to explain the advantages 

to them, explained how 

by making sacrifices today, we all 

will be better off tomorrow. 

What were the most transforming 

decisions you made? 

We articulated the global delivery 

model which means that in a given 

project, 20-30% needs to be 

delivered near the customer, and 

70-80% could be delivered from 

countries like India. This was 

formulized by us and we developed 

the various necessary tools 

and processes and in some sense 

it became the standard for the 

entire industry. 

How important today it is for 

any company to keep on adapting 

to changes to survive in 

this cut throat competition? 

Prof. Peter Drucker once said, 

“There are only 2 essential attributes 

for the success of a corporation 

they are innovation and 

marketing of that innovation.” 

You have to constantly innovate 

and you must sell this innovation 

to everyone within the company 

as well as outside the company. If 

your customers don’t value your 

innovation it is meaningless, if 

your employees don’t buy that innovation, 

it won’t value. In an environment 

like ours where we are 

going from country to country, 

we are going from application to 

application and where we are going 

from technology to technology, 

the only thing which is constant 

is ‘Change’. 


COVER STORY 

“THINGS MAY NOT BE 

SUCCESSFUL AT TIMES” 

RAJEEV KARWAL, FOUNDER AND MANAGING DIRECTOR OF 

MILAGROW BUSINESS AND KNOWLEDGE SOLUTIONS TURNS THE 

PAGES OF HIS CORPORATE JOURNEY BACK AND FORTH IN FRONT 

OF MRINMOY DEY AND CHARU 

Starting with Onida as a Marketing 

Executive, he went on to 

work with leading brands including 

LG, Philips, Electrolux 

and Reliance. And finally, it was in 

2007, Rajeev, who is credited for his 

excellence strategic abilities and execution, 

adorned a new outfit of a managing 

partner for Milagrow Business 

and Knowledge Solutions. The company 

focuses on providing professional 

management services to the SMEs and 

MSMEs and partners them at all stages 

of development. 

How did this idea of Milagrow 

business come to your mind and 

what opportunities it offer to the 

SME and MSME sectors? 

Milagrow is just a five-year old company 

but the idea started cropping 

up my mind long ago. ‘Milagro’ is a 

Spanish word which actually means 

the ‘magic of faith’ but we added the 

letter ‘w’ with it as nobody in India 

understands Spanish and it becomes 

‘Milagrow’ which is something the 

consumer can correlate very easily. 

As ‘Mila’ means meet and ‘grow’ 

means rise and together it means we 

will rise hand in hand. It was during 

my stint with Reliance, I felt that 

there had been enough of serving 

for commercial reasons and one 

INTUITION IS THE IMMEDIATE AND 

THE HIGHEST FORM OF LEARNING 

AND ONE CAN ONLY HAVE IT BY 

UNDERSTANDING THE MARKET 

WELL AND THE CUSTOMER'S 

UNMET NEEDS 

must have an initiative of his own. 

Secondly, the world is a one big market 

place and India is a nation of 

micro, small and medium industries. 

So, here we service our clients at 

every stage: from strategy to execution 

to institutionalization. With 

time, people have started looking at 

us as specialists as the company provides 

360 degree practices depending 

upon the economic status of the 

company, engage in CEO mentoring. 

Most of the companies actually 

find it difficult to enter the Indian 

market. And before you joined LG, 

the company failed twice in its attempt 

to venture India. What 

transformations have you brought 

in the company to make LG one of 

the most successful MNCs? 

LG is a Korea-based company and 

the foremost thing I realised while 

working is that marketing is the science 

of appealing to the head and 

then getting into the heart while, 

HR is the art of appealing to the 

heart and then getting to the mind. 

And anything which has to do with 

heart and mind must be managed by 

the local people. The people in LG 

understood it well and I headed the 

sales and marketing division. In 

terms of branding a product, it’s 

very important to position a brand 

with a single-minded objective. And, 

it was not out of any big research, it 

was all out of my intuition that we 

choose that LG should stand for 

healthy products and living. Intuition 

is the highest form of learning 

as it is something which is immediate 

and one can only have it only if 

he/she understands the market well 

and the customer’s need. For in- 

stance, LG's Color TV with a golden 

eye stands for wrinkle-free eyes, 

washing machine is a fabri-care 

washing machine, microwave is a 

health wave microwave oven. So, 

for any brand to become success it’s 

important that the consumer should 

relate to the fact that this is the only 

brand which worries for me and will 

take care of my health. So, I used 

this rationale of getting into the 

heart and then to the mind. And this 

is the secret behind the success of 

LG in India. 

In your stint at Philips, it became 

profitable from being a loss making 

company – from a loss of Rs. 

350 million to a profit of Rs. 500 

million. What kind of change 

management was involved? 

The main problem with Philips was 

its structure. It was a matrix organisation 

with a wide organisational 

hierarchy. In a matrix organisation, 

there is a problem of the 

unity of command as the subordinates 

were to receive orders from 

two bosses viz., the Project Manager 

and the Functional Manager. 

This created lot of confusion and 

created problem of communication 

which ultimately affected the bottom 

line of the company. Once we 

overcame that problem and customised 

marketing of the products 

were done it turned profitable. 

After working successfully with 

so many organizations. How do 

you think change management is 

important in bringing changes in 

the company? 

With ownership mind set, passion 

and performance always come as a 

natural phenomenon. Change is a 

continuous process and you have to 

accept it. This change can come either 

from within the industry or 

from outside the industry. You have 

to be continuously on guard looking 

for triggers. 

As far as inspiration is concerned, 

people get inspired by reading 

autobiographies, books and following 

the legacy of others. Who 

would you say were the people 

motivated you in your life? 

I am living my father’s dream. It is 

the thing which probably my father 


RAJEEV KARWAL 

MANY FACTORS CONTRIBUTE 

TO THE SUCCESS OF A PERSON 

IN GIVEN CIRCUMSTANCES BUT 

I WAS NEVER SHORT OF MY 

EFFORTS, PASSION, OWNERSHIP 

Rajeev 

Karwal, 

Founder 

and 

Managing 

Director of 

Milagrow 


PHOTO : SUJAN SINGH 

wanted to do due to family needs 

and moreover, there were not much 

opportunities. However, there is no 

individual as such who inspired me. 

But one of the books by Richard 

Batch left an indelible mark on me. 

I am someone who always want to 

test the limit of my mind and body. 

What is the one thing you think 

you could have done differently? 

Honestly saying, I don't have any 

regrets in my life. It doesn't mean 

that I haven’t made mistakes. I have 

made mistakes but have no regrets. 

There are lot of factors contributing 

to the success of a person in given 

circumstances. I have not been short 

in terms of my efforts, my passion 

and my ownership. Things may not 

be successful at times but I take it as 

part of life. 

What are the future plans of Milagrow? 

I wouldn’t like to restrict Milagrow 

to India. I want it to be a world-wide 

brand. Might be at certain stage for 

our product division, we may go for 

joint venture with some company 

but it will not happen in the near 

future of two or three years. 

As a successful leader and entrepreneur, 

what advice you would 

like to give to budding entrepreneurs 

in India? 

I would say to all the young entrepreneurs 

that its very important to 

go to the market, understand the 

consumers, come out with new 

products and services which are 

truly serving the unmet needs, 

process the technologies and institutionalize 

them if you really want 

to build a scalable business. Else, 

you won't be able to survive for long 

in the market. We need to understand 

that people loose battles in 

the mind first and physically they 

lose later.

COVER STORY 

“CHANGE IS INEVITABLE IF THE 

COMPANY ASPIRES TO SURVIVE” 

REPLYING TO CHARU OF CYCBTH, FORMER MD AND CEO OF MERCEDES-BENZ WILFRIED 

AULBUR TALKS ABOUT HOW CHANGE IS DIFFICULT TO IMPOSE IN ALL CULTURES AND IS A 

THREAT TO THE POSITIONS OF ENTRENCHED PLAYERS 

Wilfried 

Aulbur, 

Former MD 

and CEO, 

Mercedes- 

Benz India 


Apost doctoral researcher from 

the Ohio State University Dr. 

Wilfried Aulbur has carved a 

niche for himself in the fast 

developing luxury automobile segment 

in India. He headed Mercedes-Benz for 

five years and played a pivotal role in 

the company's India's operations. In his 

tenure, the company marked its presence 

in the truck and the bus business 

and expanded its research and sourcing 

operations. Now, he is the managing 

partner of the world's fourth largest 

consultancy firm Roland Berger Consultants, 

India. 

After serving with Mercedes Benz 

as the country's Managing Director 

and CEO, you decided to move 

out in 2010. What did influence 

you to take this decision? 

The years with Mercedes-Benz in 

India were rewarding and exciting. 

I thoroughly enjoyed addressing 

the market challenges together 

with the team at Mercedes, both 

employees and dealers. Roland 

Berger offered me a different challenge. 

Setting up a consulting operation 

from scratch, building up 

the team and the brand, delivering 

value for customers in India in diverse 

areas as Automotive, Industrial 

Goods & High Tech, Energy, 

Chemicals, Utilities and Consumer 

Goods and Retail by leveraging a 

global network of highly competent 

and entrepreneurial partners. It is 

a unique opportunity that I am really 

enjoying. 

What were the differences in leadership 

strategies when you shifted 

from Mercedes to Roland? 

In a professional service company 

you deal with small teams of very 


WILFRIED AULBUR 

thoroughly chosen people who 

work very intensively to come up 

with solutions for the clients problem. 

This requires a different management 

approach: It is much less 

hierarchy and much more leading 

by example, by providing the right 

environment and by motivating 

people with the appropriate challenges. 

That's the internal aspect. 

What role do you think change 

management strategies play 

when one talks about company's 

overall structuring? 

We used to live in a world where 10- 

year plans made a lot of sense because 

changes in the environment 

were few and mostly predictable. 

Today, globalization and dramatic 

economic, technological and political 

change is common place and 

change management is a part of 

day-to-day management. Consumer 

preferences change overnight, 

standard consumer classifications 

become less relevant, new competitors 

appear out of nowhere, speed 

and complexity of business increases 

constantly as well as the ambiguity 

of the environment in which 

companies operate. 

Companies that are able to adapt 

their strategies and their organizations 

quickly to this changing environment 

will be the winners going 

forward. Change management 

projects need to be stringently run 

and focus on content, commitment, 

capabilities and culture. 

However, it is important to realise 

that change management must 

not only address vertical conflicts 

of interest. For example, the last 

strikes in Germany of any scale and 

impact happened in the early 1990s. 

After that the influence of unions 

has waned and in a globalized environment 

the opportunities for 

workers to leverage influence vs 

company management has weakened. 

Nevertheless about twothirds 

of change management 

projects fail or fall short of expectations. 

Today, change often not only 

affects workers, but also threatens 

the positions of executives who in 

turn will try everything they can 

to protect the status quo. 

There are very few CEOs who have 

taken bold steps in transforming 

their companies. Do you feel that 

CEO's are still shy when it comes 

to unconventional innovations or 

managerial decisions? 

The job of a CEO is not an easy one. 

While some may realise the necessity 

of change when they often face 

legacy problems in their own organisations 

which have grown with 

time and are difficult to dismantle. 

For many OMEs this means that resource 

allocations have to be made 

correctly. 

How change management in India 

is different from that of Germany? 

And who would you think 

are more active towards it: the 

Indian CEOs or the West CEOs? 

Change is difficult in all cultures as 

it often threatens the positions of 

entrenched players. It is in particular 

more challenging in rigid, hierarchical 

structures. As far as India 

and Germany are concerned, one 

major difference is that in Germany 

vertical challenges have subsided 

over the years and major hurdles to 

change are often found within the 

management teams, i.e., in horizontal 

conflicts. In India, horizontal 

conflicts are important as are vertical 

conflicts as recent labor problems, 

e.g., in the automotive industry 

have shown. 

Secondly, I would not like to differentiate 

between nationalities 

and it is more important to focus on 

individuals. There are people who 

have the vision to grasp change 

with both its challenges and opportunities 

and to thrive in today's 

complex and ambiguous environment. 

Then, there are people who 

are more set in their ways, maybe 

even satisfied with the position 

they have achieved for their company 

and for themselves. And in 

such a scenario, the first set of people 

will be more likely to succeed in 

the 21 st century. 

Change and transformation 

sometimes bring with itself lots 

of resistance and difficulties? Did 

you face any such resistance & 

how did you address the same? 

Resistance to change is to be ex- 

RESISTANCE TO CHANGE IS TO 

BE EXPECTED AND THE BEST WAY 

TO HANDLE SUCH RESISTANCE IS 

TO IDENTIFY AND COMMUNICATE 

'WIIFM' (WHAT'S IN IT FOR ME) 

pected. One of the best ways to handle 

such resistance is to identify 

and communicate the WIIFM, 

('What's In It For Me'). If people understand 

the necessity and benefit 

of change, then driving that change 

becomes much easier. A good example 

is the fact that social benefits 

and pay in Germany have been cut 

over the last number of years to enable 

Germany to fight, e.g., Chinese 

competition in global markets. The 

WIIFM for German workers at that 

point in time was the preservation 

of jobs in Germany rather than a 

massive shift of all production overseas. 

In Indian factories, improvements 

in productivity could eventually 

be linked more directly to 

the performance of workers and 

supervisors so that company and 

individual interests can be aligned 

accordingly. 

What are the strategic differences 

in Mercedes Germany and 

Mercedes India? And how difficult 

was the transition for you? 

The competitive environment between 

India and Germany and the 

challenges the management face 

are surprisingly quite similar. However, 

customers in India do require 

a specific approach, targeted on 

their expectations towards Mercedes 

as a luxury brand. 

Do one need to alter style of leadership 

while implementing any 

change in the company? 

Change is very much part of our 

day-to-day business. As a consequence, 

there is no leadership style 

which is the 'right' leadership style 

for change, but each leadership 

style needs to be tuned into the 

company's culture, policies and 

take into account, that transformation 

is a key responsibility of today's 

leaders. 


COVER STORY 

“THE PROS & CONS SHOULD BE 

DEBATED, DIFFERENCES SETTLED” 

GOVIND SHRIKHANDE, MD, SHOPPERS' STOP, IN AN INTERVIEW WITH CHARU TALKS ABOUT HIS 

LEADERSHIP ODYSSEY OF REPOSITIONING THE COMPANY INTO THE LAP OF LUXURY BRANDS 

Redefining India's retail sector, 

Shoppers' Stop has aggressively 

tapped all unexplored 

markets across the country 

and is growing rapidly. Under the leadership 

of Govind Shrikhande, the company 

has witnessed significant growth 

and has recently announced its plans 

of opening 24 stores over the next three 

years. He joined the group in 2001 and 

was promoted as CEO in 2006. He has 

vivid experience of 22 years and has 

worked with leading companies like 

Mafaltlal, Arvind, Arrow and Bombay 

Dyeing. He was a key member in 

launching Denim Revolution in India. 

In this long corporate journey, 

you worked with leading textile 

companies. How has been the 

journey so far? 

Life is full of rewards, joys, setbacks. 

I have learnt a lot over the last 27 

years. I have been lucky enough to 

have some of the best bosses in my 

career - Mr Anubhai & Mr Mogra in 

Mafatlal, Mr Phadke in J&J, Mr Mirchandani 

in Arvind . They acted as 

“Gurus”, for me and taught the fundamentals 

of textiles, management 

& HR. I was also quite lucky when it 

comes to colleagues & teams who 

worked with me. 

It’s Crucial in your life to love 

CHANGE IS CONTINUOUS 

AND INEVITABLE, SO THE TOP 

MANAGEMENT HAS TO LOOK 

FORWARD IN THEIR OUTLOOK 

TO FACE THE CHALLENGES OF 

TODAY AND TOMORROW 

Govind 

Shrikhande, 

MD, 

Shoppers' 

Stop 



GOVIND SHRIKHANDE 

your work. The minute it becomes 

a Job, it starts weighing on you 

heavily & you know it’s time 

to change or move on. I have been 

part of some of the best 

moments in Indian Textile, Apparel 

& Retail Industry. 

How do you think change management 

is playing a pivotal or 

key role in the growth of the 

company and re-structuring? 

India has changed dramatically 

over the last 20 years of my journey. 

It is now on its way to be amongst 

the top three economies of the 

world. It is the hub for IT, car manufacturing, 

fastest growing mobile 

market and retail market. Women 

are now coming on to their own and 

leading businesses, social service 

and consumption. The'Chak De' 

spirit is evident across various sectors 

and groups of youngsters. 

Companies have to adopt to these 

changes in the consumers, economy, 

technology & competition, both local 

& global. We have gone through 

various changes over the last 20 

years reflecting this change. Sometimes 

very successfully, sometimes 

not so successfully. The restructuring 

has happened in areas of management 

& team structures, technology, 

people practices, store design, 

customer service, formats etc. 

So change is continuous, inevitable 

and necessary and our management 

has been flexible and forward 

looking in their outlook to face the 

challenges of today and tomorrow. 

What are the changes Shoppers’ 

Stop brought under your leadership 

to penetrate the Indian retail 

market? 

I would say there are five key things 

that, we as a team have achieved, 

over the last few years: 

1. Repositioning our brand to a 

bridge to luxury positioning from a 

contemporary level, through logo 

evolution and other touch points. 

2. Strengthening our trading model 

and operational efficiency to make 

our model recession proof. 

3. Closing down loss making formats. 

4. Taking a leadership position in 

the beauty category by creating the 

best beauty halls in India through 

launch of brands such as Mac, Estée 

Lauder, Clinique Shishiedo, Dior 

Lancome etc. 

5. Expanding into Tier 2 Towns. 

There are very few CEOs who 

have taken steps in transforming 

the companies. Have you faced 

any resistance while implementing 

any change in the company? 

Inertia / comfort with the current 

and fear of the new are common 

traits amongst humans. That's why, 

very few people dare to think of 

new ideas and changes. While a lot 

of CEOs believe that 'if it ain't broken, 

why fix it', while the new breed 

thinks that creating new is part of 

the cycle of life. So, not all CEO's 

think of change as a must for transformation. 

Hence, they are reluctant 

to innovation. 

Just as music lovers don't listen 

to the same song every day and 

every season, consumers want 

change. And many a times, they 

don't actually know what they 

want. In such circumstances, one 

looks at research, focus group studies, 

market data, observation on 

retail floor to understand the 

change. Obviously, when a change 

is proposed, a lot of people need to 

change the way they currently operate. 

Hence they resist the change 

for their own valid and invalid reasons. 

Hence, it is important to bring 

objectivity, as the key to focus on 

the merits of the change. The pros 

& cons should be debated, differences 

settled with the key stakeholders 

and a crack team to deliver 

the objective and they should be 

formulated along with key milestones 

towards the goal. Such an 

approach can convert the very 

thought of change into reality. 

What are the characteristics 

that you believe a leader 

should possess? 

A leader requires various skills & 

competencies – Personal & Professional. 

The personal skills cover his 

HR skills – relationship building, 

learning capability, passion for 

work and team members growth 

etc. The professional competencies 

cover his understanding of indus- 

A LEADER NEEDS TO FOCUS 

ON STRENGTHENING THE 

COMPANY'S TRADING MODEL 

AND OPERATIONAL EFFICIENCY IN 

ORDER TO MAKE THE BUSINESS 

RECESSION PROOF 

try, the drivers of the business, key 

challenges & solutions. Apart from 

the key leadership principles, I 

strongly believe that a leader must 

lead by example. So, a Mike Brearly 

can lead a good team to winning 

ways for a certain duration but if his 

own performance is below par for 

too long, his leadership will be 

questioned. Steve Jobs, the founder 

of Apple was sacked from his own 

company but on his return, he took 

the company to greater heights 

through his personal drive. If I had 

to state only one characteristic, I 

would say leading from the front 

with passion. 

Who would you say are the people 

who had a tremendous impact on 

you as a leader? Why and how did 

they impact your life? 

I have looked up to various role 

models across various sectors. Right 

from the Nawab of Pataudi's fight 

back from an eye injury to play 

cricket at international level to JRD 

Tata's simplicity to Steve Jobs wizardry 

to make complicated things 

intuitive to Narayan Murthy's 

achievement of creating a truly global 

company without having any 

business background to Kapil Dev's 

passion to excel & to always give 

110 % ,,, I can go on & on. 

Nearer to me, I have also been influenced 

by the personal characteristics 

of my grandfather & father. 

They were both hard working, humble 

people who always helped others 

and always remained grounded, even 

when they had power and glory. And 

of course the Gurus that I mentioned 

at the beginning, Mr Anubhai, Mr 

Mogra, Mr Phadke & Mr Mirchandani. 

Each one of them has given me 

a lot . And I would be forever indebted 

to all of them. 


COVER STORY 

“TITAN STANDS FOR 

SOMETHING BIG” 

FOUNDER AND MD EMERITUS OF TITAN INDUSTRIES, XERXES 

DESAI, TRAVELS BACK IN TIME AND REVEALS HOW HE BUILT THE 

BRAND 'TITAN' OUT OF NOTHING IN AN EXCLUSIVE INTERVIEW 

WITH SRAY AGARWAL AND CHARU 

Xerxes 

Desai, 

Founder 

and MD 

Emeritus 

of Titan 

Industries 

The Oxford-graduated Desai is 

the man behind the country’s 

premium and leading globally 

recognized Indian brands – Titan. 

Under his leadership, Titan has become 

the world’s sixth largest watch 

manufacturer and marketer and exports 

watches to about 32 countries. 

What was the idea behind starting 

the company and how did you 

come in the picture? 

It was the time when I joined Tata 

Press and the company was identifying 

a project which Tata’s would 

be permitted to enter. But every 

time, we identified a project either 

the government of India or the 

Government of Tata said ‘no’. But 

one day, I got a call from TIFR and 

was asked to print a book. Then, I 

got familiar with the author of the 

book, Jaivardhan Mahadevan who 

happened to be the chairman of the 

watch industry. After discussing 

the project with him, we finally 

sent a proposal to JRD Tata. Unfortunately, 

nothing worked out as the 

stakeholders declined to work with 

us as they wanted to launch the 

product in any country except India. 

But the industry took a new 

shape when Rajiv Gandhi came to 

power and we were asked to apply 

again. And finally, the government 

agreed to form a joint sector company 

in collaboration with Tamil 

Nadu Industrial Development Corporation 

(TIDCO). So, it took almost 

16 years to start Titan and it was in 

1987 that the products started hitting 

the market. 

Where did the name Titan come 

from? 

Titan stands for something big. 

Also, it is a cheeky way of asserting 

the Tata’s presence in the project. 

‘TI’ stands for Tata Industries while 

the second half ‘TAN’ stands 

for Tamil Nadu Industrial Development 

Corporation. 

What were the changes incorporated 

under your leadership in 

Titan? 

Success finally lies in getting things 

right and we were able to understand 

that the watch industry is a 

very rationale industry. Moreover, 

the timing of Titan’s launch was in 

our favour as the opposition was 

weak so it was a cake-walk for us. 

We had a team of young people and 

a huge number of people joined us 

from HMT in the manufacturing division. 

The culture in our company 

was not rigid or bureaucratic as we 

were far from Tata’s headquarters. 

We experimented a lot many things 

at the same time and even broke the 

rules too. 

How important it is for a CEO to 

manage the entire transition? 

Change in a way, is being structured 

upon people, upon CEOs, in a manner 

that desn’t happen in 60s, 70s, 

80s. And there is a perception that 

we should change with time. It’s not 

the change that change, it’s the 

question of understanding the market 

not only in India but worldwide, 

not only what is happening in the 

market but also what is happening 

in the laboratories and people’s 

mind the world over. We focused on 

what could be the product for next 

generation, what could be its style 

with not much focus on current 

competition. One doesn't think 

about current competition as it is 

changing continuously. One needs 

to tap the market aspirations. 

Who were the people motivated 

you throughout your journey? 

I was highly motivated by JRD Tata 

particularly in the second half of my 

working life. Mr. Darbari Seth who 

retired as chairman of Tata Chemicals 

also was the person who influenced 

me a lot. 


JAGDISH KHATTAR 

"OUR BIZ MODEL 

WAS DIFFERENT" 

EX MD OF MARUTI, JAGDISH KHATTAR EXPLORES 

IN AN INTERVIEW WITH SRAY AGARWAL – WHAT 

MOTIVATED HIM TO LEAVE MARUTI AND TO START 

CARNATION AUTO 

Jagdish Khattar joined Maruti as 

Director Marketing and Sales in 

1993 and got elevated to Managing 

Director & CEO in 1999. After transforming 

Maruti into a profit-making 

company, he left the company in 2007 

to chase his dreams. He then started 

Carnation Auto and today serves as the 

Chairman and Managing Director of the 

company. Showered with arrays of 

awards, Khattar is a saga in himself. 

If we talk about the entire journey 

of yours, how did the idea of 

Carnation came in your mind? 

Prior to joining Maruti, I started 

my career as an IAS officer. I had 

served Maruti as long as 14 years. 

During those days, I used to do routine 

visit to several dealers and interact 

with customers to comprehend 

their needs and aspirations. I 

carefully observed that customers 

were looking for a quality alternative 

to their authorized dealerships. 

But car owner had only two alternatives 

available there either go to 

an authorized dealership or to a 

neighborhood workshop. I saw an 

opportunity of a one-stop-auto solution 

outlet for all brands of cars 

and translated this insight into the 

vision on which Carnation was established. 

We started new concept 

like mobile work shop, which is basically 

for such customers who do 

not need to come into the centre 

and to get services in their offices 

or residential area. 

What kind of resistances did you 

face from the industry? 

One of the biggest challenges we 

face that Carnation had no competitor. 

So, there were no benchmarks 

in the industry with which 

we could compare our performances 

to enhance our standards 

and to provide better experiences 

to our customers. But it was our 

team effort to set our own targets 

and strived to provide better services 

on a continuous basis. 

What are the changes you are going 

to implement in Carnation to 

make it as big as Maruti ? 

Our business model was different 

from others but we have to change 

it with time. We started with new 

cars and then came to realise that 

new cars are very expensive and 

are not affordable for our whole 

target audience. So we also decided 

to move with second hand or used 

cars. We spend lots of money and 

time for around two years to build 

up the brand. But we still have a 

long way to go to make Carnation an 

established and responsive brand 

not just in the automotive space in 

the country. 

What are the important aspects 

that you focused on to establish 

Maruti as a market leader in Automobile 

in India? 

There are several factors where we 

have to focus very sincerely. At the 

age of cut throat competition, we 

have to handle a customer very 

carefully. As bad experience of a 

customer towards our brand does 

not only motivate him to move to 

our competitors but also negative 

word of mouth severally affects our 

market share. As a manufacturer, 

we are not in a direct contact to the 

end customers. Indirectly, we need 

to create so many values towards 

dealers so they become more cooperative 

with customers and com- 

PHOTO : MUKUNDA DE 

ENTRY OF SMALL PLAYERS 

REEMPHASISES THE FACT THAT 

A ONE-STOP-AUTO SOLUTION 

OUTLET HAS FURTHER 

POTENTIAL 

mitted to the company. A happy 

customer is more likely to make 

second time purchase from the 

company. Besides, if any product 

fails in the market then we have to 

put several efforts to bring back the 

confidence of our customers. 

Recent entry of small players in 

the same business domain has 

intensified competition. How do 

you tackle it? 

Neighbourhood workshops were there 

before our existence. And the recent 

entry of small players indicate the fact 

that a one-stop-auto solution outlet 

has further potential and will expand 

with time. We do not see these developments 

as competition. 

Jagdish 

Khattar, 

Founder – 

Carnation 

& Former 

Managing 

Director, 

Maruti 

Udyog Ltd. 


COVER STORY 

“YOU HAVE TO SEE BOTH SIDES” 

MK ANAND, CEO OF UTV BROADCASTING SHARES THE RECENT REBRANDING STRATEGIES 

ADOPTED BY UTV TO CATER TO MARKET DEMAND TO SRAY AGARWAL 

M 

K Anand is someone 

who aptly exemplifies 

transformation. 

He started his career 

as a medical representative and 

then moved to Times Group and 

managed their classified section. 

But his ever expanding appetite for 

continuous learning made him 

join Zoom as head of Sales and today 

he serves as CEO of UTV Global 

Broadcasting. Under his leadership, 

UTV re-launched Bindaas 

and came out with myriad of new 

offerings ranging from UTV Stars 

to UTV Action. 

You started your career as a 

medical representative and 

now you are the CEO of UTV. 

Why such transformation 

and transition? 

WE BELIEVE THAT BRAND 

SPECIALIZATION ALLOWED US 

TO BE MORE CREATIVE AND 

INNOVATIVE AND IN TURN 

HELPED US TO EXPAND 

THE NETWORK 


cause as CEO you have to keep your 

eyes in the both sides. 

UTV s is in every genre and fields. 

Most of the time you started with 

some reality shows, which were 

some more of a first movers in the 

industry. So why did you move to 

a very modern type of shows? 

We are very strong in branded channels. 

We believe that brand specialization 

allowed us to be more creative 

and innovative. In order to expand 

the network, we always have concentrated 

on two strategies. First, we 

always looked to provide more relevant 

initiatives within the existing 

target group. For instance, through 

UTV Stars, we have created something 

out of nothing. 

Secondly, we always targeted a 

segment where competition does not 

exist and we can enjoy the first movers 

advantages. Besides, we are constantly 

looking at an audience of 18 

– 25 age group. So we have a reality 

channel (UTV Bindass), music channel 

(UTV Stars) and movie channel 

(UTV Movies, UTV Action). We have 


MK Anand, 

CEO of UTV 

Broadcasting 

I wouldn’t say that I changed 

my first job as it was a sales job. 

When we look towards the value 

chain, we come to know that only 

production can not create value to 

the economy until and unless whatever 

has been produced or manufactured 

in factory or in premises reach 

to the end consumers who purchase 

it. Initially, I looked at the second 

part of the value creation in economy. 

So, I was very much clear about 

my future and whenever I used to 

prepare my plan for the next 20 

years, I naturally gravitated towards 

sales and marketing job. And then 

gradually I tried to understand the 

in depth function of production bea 

team of intelligent people 

who can easily understand the 

market and figure out the 

widely accepted contents. 

What is your learning from 

Zoom and how have you implement 

that in case of UTV 

Stars? 

Life is full of learnings. I would 

say learnings from Zoom 

helped me a lot in the execution 

part of UTV Stars. Ultimately, 

content and brand legitimacy 

plays a critical role 

towards the success of any 

channel. 

As far as UTV Action is concerned, 

we have not done that 

well in India. UTV Movies is 

the most strongest brand of the 

UTV Broadcasting with close 

to 40% of the revenue coming 

from it. It is followed by UTV 

Bindass where we are focusing on 

reality shows. UTV World Movies is 

for a niche audience and are expected 

to grow strong with time. We also 

have UTV Action Telegu. At the end 

of the day, we have to diversify into 

languages other than hindi as 50% of 

the market is covered by other languages 

as well. We are quite excited 

about the launch of our new channel 

UTV stars with the tagline – 'the official 

channel of bollywood' and 

would cater to music and entertainment 

section. And, I believe UTV's 

strong presence in Bollywood would 

provide us with a competitive advantage 

over others. We have also 

launched UTV Movies in Uk in association 

with Sky TV recently. 

How do you see resistance during 

such new initiatives? 

Internal transformation doesn’t necessarily 

need to face resistance. A 

clear communication about the 

changes reduces the chance of confusion 

and hence reduces resistance 

to change.

GANESH NATARAJAN 

"YOUNG PEOPLE ARE ALWAYS 

WILLING TO CHANGE" 

IN AN EXCLUSIVE INTERVIEW WITH MRINMOY DEY, VICE CHAIRMAN & CEO OF ZENSAR 

TECHNOLOGIES, GANESH NATARAJAN HIGHLIGHTS THE POWER OF EMPOWERMENT IN 

TRANSFORMATIONAL PROGRAMS AND PERFORMANCE ENHANCEMENT 

Vice Chairman & CEO of Zensar 

Technologies Limited of 

RPG Group, Ganesh Natarajan 

is one of the most 

successful professionals in the country's 

IT industry. During his stint 

with Aptech Limited, a global retail 

and corporate training company, the 

company's revenues increased considerably 

fifty times was listed on 

both BSE and London Stock Exchange. 

He has also authored many books on 

Business Process Reengineering and 

Knowledge Management. 

Zensar featured amongst Fortune’s 

top 10 global Offshore outsourcing 

companies from India. 

How had Zensar Technologies 

charted its density? 

It was in 2001 when Zensar started 

becoming a software vendor after 

shutting down our hardware assistance 

system. Now, we are ranked 

amongst India's top 20 software 

services companies by NASSCOM 

and are operational in more than 

21 countries. 

What changes you have brought 

in Zensar over these years? 

The main changes that we have 

done are included in 'the five act' 

- (i) The first step was enabling people 

to think fast; (ii) very strong 

focus in a particular area; (iii) increasing 

flexibility in terms of 

workplace, role of the employees; 

(iv) collaborating culture with organisational 

hierarchy (v) five point 

Green agenda towards creating 

ecological sustainability. Moreover, 

we have initiated an annual Vision 

Community exercise where selected 

employees from all levels join in 

after-hours brainstorming session 

to identify ideas that could lead to 

new products or services. 

We are focusing on using social 

media and mobility solutions and 

we have a major partnership with 

Google in this matter which would 

enable employees to collaborate 

with each other easily. Over the 

next one year we want to encourage 

30% of our employees to spend 2-3 

days in a week working from home 

with the same enthusiastic level. 

What hurdles have you faced after 

implementing these changes 

in the company? 

Young people are always willing to 

change. But sometimes what might 

come in the way could be the middle 

management who are used to 

a certain working style and might 

not be comfortable with everybody 

having access to everything. 

We also faced similar hurdles dur- 

ing transformation. 

What are the future plans of Zensar 

and are there any new tie-ups 

in the pipeline? 

We want to further strengthen our 

partnership with Microsoft and 

Google. We are also looking at the 

tie-ups with small business solutions 

companies which have similar 

kind of architecture. We have three 

to four new tie-up in the pipeline 

and we are looking at subsidiary in 

China and UK. 

Ganesh 

Natarajan, 

Vice 

Chairman & 

CEO of Zensar 

Technologies 

WE ARE FOCUSING ON USING 

SOCIAL MEDIA AND MOBILITY 

SOLUTIONS WHICH ENABLE 

EMPLOYEES TO COLLABORATE 

WITH EACH OTHER EASILY 


EXCLUSIVE COLUMN 

THE 'HOW' OF TRANSFOR- 

MATIONAL LEADERSHIP 

TRANSFORMATIONAL LEADERSHIP FOCUSES ON 

LEADING CHANGE AND MOTIVATES FOLLOWERS 

TO WORK FOR THE LARGER GOOD 

A 

mother once brought her child to Mahatma 

Gandhi, asking him to tell the young boy not 

to eat sugar, as it was not good for his diet or 

his developing teeth. Gandhi replied, “I cannot 

tell him that, but you may bring him back in a month. 

The mother was frustrated as she had expected the great 

leader to support her parenting. Four weeks later she 

returned, not too sure what to expect. The great Gandhi 

took the child’s small hand into his own hand, knelt 

before him, and tenderly cautioned, “Do not eat sugar, 

my child; it’s not good for you”. Then he embraced the 

child. The mother, grateful but perplexed, queried, 

“Why didn’t you say that a month ago?” Well, said Gandhi, 

a month ago I was still eating sugar myself.” Gandhi 

knew that to effectively lead others he must first lead 

himself. Gandhi wrote “How can I control others if I 

cannot control myself?” 

Gandhi believed that an ounce of practice is more 

than tons of preaching. This subject could not have 

started without above example, the illustration which 

is so simple in reading but so in depth and complex that 

it may take some time before some of us absorb the essence 

of transformational leadership practice which is 

“Be the change you want to see in the world” as well 

defined by Gandhi who gave definition to Transformational 

leadership style. It will also be important to note 

that transformational leadership is required at its maxima 

when you are leading volunteers and is not supported 

by any external mechanism except to follow the 

principles yourself, otherwise, for example in Industry/ 

Corporate its comparatively easier to implement this 

style with very high productivity because of support 

from external factors such as employee’s salary, perk 

growth and security which is absent when you are leading 

volunteers. 

In simple words, let’s define transformational leadership 

as: "Leadership that motivates followers to ignore 

self-interests and work for the larger good of the organisation 

to achieve significant accomplishments; emphasis 

is on articulating a vision that will convince subordinates 

to make major changes." These leaders have 

a profound effect on their followers’ beliefs regarding 

ASHOK MALHOTRA 

CEO Spark Leadership Inc 


what the organisation should become and also on their 

subordinates’ values. Some examples of individuals who 

are considered transformational leaders include Bill 

Gates of Microsoft, Steve Jobs of Apple, Michael Dell of 

Dell Computer Corporation, Jeff Bezos of Amazon.com, 

Lou Gerstner of IBM. 

It is also true that people who have the potential to 

become transformational leaders can easily lose this opportunity 

by making serious mistakes. Indeed, President 

Clinton may be an example of an individual who botched 

the opportunity to become a highly successful transformational 

leader, because of several mistakes. Though in 

between a course correction was done to some extent. 

There is a significant amount of evidence that transformational 

leadership is more effective than transactional 

leadership in achieving higher productivity, 

higher job satisfaction, and lower employee turnover 

rates. To explain this further, we need to reiterate here 

that one of the most comprehensive leadership theories 

of organisational transformation is the theory of transformational 

and transactional leadership as quoted by 

Left to Right: 

Mahatma Gandhi, 

Bill Clinton 

& Dalai Lama 

– the epitome of 

transformational 

leadership

ASHOK MALHOTRA 

Eisenach in the year 1999 also by Burn in the year 1978 

held that leadership could be broadly classified into two 

forms, transactional and transformational leadership. 

Transactional leadership occurs when the leader takes 

the initiative in making contact with the teams for the 

exchange of valued outcomes. Transformational leadership 

on the other hand focuses purely on leading change. 

The transformational leader engages with others in such 

a way that both leader and followers raise each other to 

higher levels of motivation and morality. In transformational 

leadership, it is important for the leaders to 

address true needs of the followers and lead the followers 

towards fulfillment of those needs. 

Unfortunately though, as with most things that we 

value, transformational leadership is in short supply. 

We need much more of it, in every sphere, be it government, 

business, education, the law, or even non-profit 

organisations. Our slow and halting progress seems even 

more conspicuous when we look at the rapid growth 

many less-endowed countries have achieved over the 

past two-three decades. Let us learn transformational 

leadership lessons by analysing leadership styles of two 

leaders Gandhiji and Dalai Lama. 

Whenever we will refer to Gandhiji’s leadership style 

the word will be SIMPLICITY and that is the epitome of 

a genius. Before Gandhiji became the leader of 500 million 

people, who called him “The Mahatma” and before 

he became the Father of Nation by winning the fight for 

independence, he was a shy boy and an average personality. 

Even with this background, without holding any 

official position in the government, had no wealth, commanded 

no armies – he could mobilise millions and as 

a result of his example and personal character, the mass 

organized together to fight to become self reliant and 

Independent nation. He won the hearts of his greatest 

critics by practicing Interpersonal and excellent communication 

skills. Another example of leadership is 

"PRESIDENT CLINTON MAY BE AN EXAMPLE 

OF AN INDIVIDUAL WHO BOTCHED THE 

OPPORTUNITY TO BECOME A HIGHLY 

SUCCESSFUL TRANSFORMATIONAL LEADER" 

Dalai Lama. What makes the Dalai Lama so interesting 

and influential around the world care about a simple 

Buddhist monk who 50 years ago was forced to leave his 

country, and who for years has headed an unrecognised 

government-in-exile, a 'virtual' nation of 6 million Tibetans 

is a important question and needs to be analysed 

in depth and clarity. 

The Dalai Lama's quiet persuasion and reaching out 

has drawn many to the message of Buddhism. He has 

contemporised Buddhism and brought it into the mainstream 

of spiritual thought. 

These leaders teach as management by self management, 

effective communication and information flow, 

Principles of natural justice, ethics, concept of OOMTAMP 

(Object Oriented Management Through Appropriate 

methods, Means and Practices). 

This leadership style is most effective style for organisational 

as well as social transformations. However, 

transformational leadership is very difficult to implement 

no wonders we have rare examples to quote. Most 

of the corporate and social leaders as well as managers 

desire to implement this style wanting the results this 

trait can produce but most of us give up on the way, get 

frustrated or fail to communicate as we fail to understand 

that this style can be only be successfully implemented 

with high degree of self discipline, highest levels 

emotional intelligence, interpersonal and communication 

skills. We have few examples of flawed implementation 

also though if not too much flawed can still 

be successfully implemented successfully 

such as Bill Clinton who once became an 

ambassador of peace and integrity found 

himself to be in the web of an integrity issue, 

though he had guts to openly accept 

his mistake, apologised and took a corrective 

action. Another such example is Anna 

Hazare and his team which is an example 

of flawed implementation of transformational 

style. The lack of interpersonal skills 

has delayed their goal which is much desired 

by the country and every citizen feels 

honoured to be part of his movement. The 

whole moment is turning out to be an issue 

of prestige, rigidity and credit taking which 

has delayed the achievement of the goal. 

The results of Transformational leadership 

style are phenomenal and no goal is 

big enough for this style but, however, 

there is an equivalent price to be paid by 

the practitioner… 

PHOTO : MUKUNDA DE 



WHY IT WORKS AND 

HOW IT WORKS 

TRANSFORMATIONAL LEADERSHIP IS A 

RELATIONSHIP-BASED APPROACH TO LEADERSHIP, 

WHEREBY LEADERS FOCUS ON EMPLOYEE NEEDS 

RONALD RIGGIO 

Leadership Professor, Claremont Institute, USA 

Transformational Leadership: What it Is, Why it 

works, and How to develop It. If there were a 

form of leadership that could motivate workers 

to high levels of performance and commitment, 

and also develop workers’ potential, wouldn’t you 

want to know about it? Or, better yet, implement it? 

Enter transformational leadership. 

Transformational leadership is a relationship-based 

approach to leadership, whereby leaders focus on employees’ 

individual needs and motivate them. Transformational 

leadership puts the employees’ intrinsic motivation 

at the heart of its theory. 

THE ELEMENTS OF 

TRANSFORMATIONAL LEADERSHIP 

Transformational leader has four unique qualities: 

1) Idealized Influence: The transformational leader is 

a role model for its team. This may relate to the leader’s 

perseverance, abilities, or other aspirational qualities. 

While much of this is perception based, it is tied into the 

leaders’ example, such as a willingness to take risks, a 

desire to do the right thing, or consistency. 

2) Inspirational Motivation: The transformational 

leader inspires his or her followers. The leader provides 

a compelling purpose and vision for the organization, 

while simultaneously fostering a sense of enthusiasm 

and optimism. Team members feel involved in making 

the vision a reality. 

3) Intellectual Stimulation: Empowerment is a key 

aspect of transformational leadership. Followers feel 

like they make a difference and their contributions are 

valued. The transformational leader encourages followers 

to question assumptions or reexamine paradigms. 

As a result, all levels of the organization foster organisational 

breakthroughs. 

4) Individualised Consideration: Followers are developed 

into leaders of their own through active coaching 

or mentoring by the transformational leader. Through 

these individualized development plans, each individual’s 

capacity is enhanced over time. With the accumulated 

growth of individual capacities, the organisational 

capacity is taken to new levels. 

These individual leadership components also integrate 

with management, and as such transformational 

leadership is differentiated from transactional leadership. 

Transactional leadership is based on the exchange 

of rewards for expected performance. It involves identifying 

what needs to be done by offering explicit value 

for one’s accomplishments. Transactional leadership 

emphasizes more extrinsic motivation, while transformational 

leadership enhances the intrinsic, or inner, 

motivation of followers. 

Transformational leadership goes well beyond transactional 

leadership. It inspires followers to buy into the 

shared vision and goals, encourages them to be insightful 

problem solvers, and at the same time, develops follower 

leadership through coaching, mentoring and a 

balance of providing challenges and support. Nevertheless, 

what can one anticipate in terms of the transformational 

leader’s performance? 

WHY IT WORKS? 

Many studies have found that transformational leadership 

leads to a number of extraordinary outcomes. How 

does it achieve these extraordinary outcomes? 

Five of these changes are highlighted. First, the follower’s 

confidence or self-efficacy is enhanced. This 

greater belief in one’s own abilities leads to stronger 

performance. It occurs on both the individual and group 

level, or in other words, the sense of being able to perform 

well (what is called “self-efficacy” is enhanced at 

the individual and collective levels. Secondly, followers 

identify with the leader. This identification is bolstered 

both by trust and confidence in the leader. Thirdly, engagement 

reaches new heights. The alignment of goals 

fosters commitment. Fourth, followers become more 

creative. This creativity is spurred by being intrinsically 

motivated. This is in contrast to extrinsic motivation 

associated with transactional leadership. Outside 

the box thinking is encouraged and exemplified. Fifth, 

followers are developed into leaders of their own. Transformational 

leaders provide coaching and mentoring 


RONALD RIGGIO 

Left to Right: 

Pierre Cardin 

& Henry Ford 

– mastered 

the art of 

change 

management 

more so than transactional leaders. Furthermore, followers 

of transformational leaders are more likely to 

seek feedback than transactional leaders. Overall, all of 

these changes positively affect performance of an individual 

and of the team. So, how does one become a transformational 

leader? 

HOW IT WORKS? 

Becoming a transformational leader is a long-term commitment. 

On one hand, the development begins with 

early life experiences. However, some individuals have 

become pioneers of their past, and past experiences do 

not necessarily dictate the future. A few examples include 

Pierre Cardin and Henry Ford. Pierre Cardin wanted 

to get even for all the things he suffered as a youngster 

with many upheavals in his family life. His drive 

and determination contributed to his success. Similarly, 

Henry Ford’s commitment launched one of the largest 

corporations in the world. 

Leaders can nevertheless remain committed to the 

transformational leadership model. Six specific competencies 

are developed: 1) Problem solving approaches, 

2) Creating compelling visions, 3) Communicating, 4) 

Impression management, 5) Empowering employees, 

and 6) interpersonal skills development, including cultural 

differences, and building a community. 

In order to develop this form of leadership, it’s suggested 

that the leader undertake an assessment via the 

MLQ (Multi-Factor Leadership Questionnaire), which is 

the most validated instrument for measuring transformational 

leadership. This is followed by a personal development 

plan. The MLQ results provide a baseline to 

get started and provide a roadmap for development. An 

"TRANSFORMATIONAL LEADERSHIP IS A 

LONG-TERM DEVELOPMENT INITIATIVE 

AND IS A KEY COMPONENT IN TAKING AN 

ORGANIZATION TO THE NEXT LEVEL" 

executive coach can also help. It’s important that this 

feedback be utilized to create a new future, rather than 

focus on past leadership. 

Again, transformational leadership is not developed 

overnight. It is a long-term development initiative and 

dedication. Establishing a plan is most important. Often 

is includes areas of development and may include attending 

workshops, one-on-one coaching, and developmental 

assessment centers, among others. Similar to 

early life development, such an approach involves scaffolding 

on the leader’s current ability to function as both 

a transactional leader with an eye toward transformational 

leadership. Education and skill training are key 

components. Follow-up may include a reassessment on 

one’s skills. 

Transformational leadership is a key component in 

taking an organization to the next level. The leader 

enables followers to be leaders in their own right. This 

cannot be done through management tactics, but can 

only occur when followers are inspired to reach higher 

levels with the necessary motivation and empowerment. 

In the end, transformational leadership makes a difference. 

Developing leaders in this manner is a longer-term 

initiative, but one well worth the effort. Great leadership, 

in the end, makes all the difference. 



TRANSFORMATIONAL LEADERSHIP: 

WHAT WILL BE YOUR LEGACY? 

AN INTEGRAL ELEMENT OF CRAFTING A LEGACY OF 

LASTING TRANSFORMATIONAL LEADERSHIP IS TO TAKE 

ACTION BASED ON OUR EVENTUAL LACK OF EXISTENCE 

COURTNEY ANDERSON 

JD, MBA, The Workplace Relationship Expert 

She has the degrees on the wall, the cars in the 

garage, the high end furnishings, lush landscaping, 

the luxurious homes, thriving business, 

dedicated staff and loving family. The accoutrements 

of power and societally defined success surround 

her. Her passport is a testament to her travels and 

worldly experience. She is fluent in the language of the 

privileged, sharing preferences for high end hotels, top 

restaurants and the finer things in life. Awards, recognitions, 

praise and financial security are woven together 

to blanket her world and wrap her in the warmth of 

safety and importance. She has sacrificed immeasurably 

and worked beyond her limits for years. Pushing past 

sleep requirements, she has greeted the sun and the late 

night in her quest to reach further, to dream more eloquently 

and to create business entities that could survive 

even the harshest economic and market environments. 

Most significantly, she ached to create a life and 

a future with options. She wanted to have room to 

stretch, to grow, to explore herself and the world. As 

financial security almost always accompanied success 

and power, that element was also part of the equation. 

Yet, the primary, and perhaps primal, drive was simply 

to make a mark on the world. 

She had nothing to begin her life’s journey other than 

determination, vision, self discipline and a relentless 

tenacity. She was a calibrated risk taker and started a 

micro (or miniscule) business venture as soon as she 

could. Every single bit of money that came in was carefully 

and deliberately stretched to cover her business 

costs and keep her going for just one more day. There 

were interminable days of anxiety while she just held 

on, put her head down and kept pushing forward. She 

had nothing but her faith in herself and absolute refusal 

to surrender and quit to keep her going. 

Many others warned her that she was “doing too 

much” and that she should stop. She found herself wishing 

that they could understand that she had no choice. 

She was possessed by forces that even she did not fully 

understand to pursue the limits of her abilities. Yet, 

every time she thought she had exhausted every breath, 

every idea, every plan, and was through; she encountered 

new reservoirs and energy and set new limits. This 

process repeated daily, weekly, monthly and annually 

for decades brought her to her current gilded position. 

Although she received only praise for her behaviour, 

she was not immune to the pain that her words and 

behaviour caused other people. She rationalized it by 

telling herself that she was “toughening” them up and 

helping them “become leaders” one day. Yet, one question 

gnawed at her. What is the legacy she will leave? 

It is a question that haunts her, and it should. 

Transformational leadership is at its simplest element, 

the forces of entropy (systems moving toward 

disorder) and homeostasis (systems maintaining stability) 

at war. Yes, I am fully aware that I am not a scientist 

and have applied a rudimentary (and debatable) interpretation 

of these concepts to the business world. Yet, 

the acknowledgment that there are powerful forces beyond 

the control of individuals and organisations that 

impact (if not cause) transformational leadership, is 

important and useful to business leaders. This helps to 

guide the leader towards comprehending that they 

alone are not the beginning and end of all action and 

that the process will continue after they leave the organisation. 

The stereotypical focus of transformational 

leadership is on the organisation that is stuck in the 

status quo and then a transformational leader emerges 

(or enters) who, like a magical being, utilizes their 

unique skill and intellect to change that entity into a 

dynamic and hyper-successful organisation. There are 

differences in individuals’ motivation, attitude, innovation 

and self discipline. Many of those changes and predilections 

manifest themselves in business leaders, entrepreneurs 

and scholars who do empirically work more 

hours, create higher measureable results and create a 

culture reflective of those values and attributes. Yet, 

what price is the transformational leader charging for 

this process? Are they stifling opposition due to their 

strong personality? Are they missing opportunities due 

to their overwhelming confidence in their own opinion? 

Most importantly, are they personally content? 


COURTNEY ANDERSON 

Our business archetype from the start of this essay 

may have accumulated all of the outward manifestations 

of contentment; yet may still not be free of anxiety, anger, 

disappointment and pain. Being cruel to other people 

causes pain. Failing to accurately assess problems 

and craft solutions also causes pain. Where is the line 

between a transformational leader “inspiring people to 

exceed their limitations” and “pushing people until they 

break?” An obstacle to lasting transformational leadership 

is losing sight of the big picture. It is an easy fallacy 

to restrict the view of an individual to a world that 

includes them. Our very existence is at the centre of our 

thoughts and actions. We must ask ourselves, what is 

our legacy? Transformational leadership without internal 

actualisation and joy can result in a transformed but 

hollow leader. To clutch the ephemeral nature of business 

achievement and serve as a catalyst for generational, 

lasting legacies of transformational change, it is 

imperative that we engage in the following: 

1. Utilize at least two “No Men” who are more cautious 

and more risk adverse than you are. They must 

be completely candid with you. Ideally, these should be 

independent individuals who have no ulterior motive 

for their feedback. They are the opposite of sycophantic, 

“Yes Men,” who due to their dependence on you will tell 

you whatever you want to hear. These individuals could 

"TRANSFORMATIONAL LEADERSHIP 

WITHOUT INTERNAL ACTUALISATION AND 

JOY CAN RESULT IN A TRANSFORMED BUT 

A COMPLETELY HOLLOW LEADER" 

be relatives, mentors, friends, competitors, or even professionals. 

This step is to address the issues of listening 

skill development and idea intoxication which hinder 

many executives from growth into an authentic transformational 

leader. 

2. Do not act out of obligation. Once you have 

achieved a certain level of achievement. You have more 

than enough, acknowledge it and embrace it. If 95% of 

people live on fewer resources than you do, it is time for 

you to enjoy the freedom that your diligence has reaped. 

You are not obligated to do what “other people” do and 

acquire what “other people” have. You do not have to 

behave as you always have simply because that is what 

other people think you should do. Do not imprison yourself 

in the approval of other people. You are now free 

to live as you please. You have proven your worth. Now, 

create your life of contentment. This step is to address 

the issue of acting out of habit and not changing the 

narrative and resultant behaviour which hinders many 

executives from growth into an authentic transformational 

leader. This step utilizes a reactive focus to cease 

“old” destructive behaviours. 

3. Invest in practicing the “Joyful Art of Business” 

as it applies to your life. This is a fundamental philosophy 

of my global practice providing solutions for 

business leaders and organisations around the world. 

You are an artist and your business activities must bring 

you joy. If they do not bring you joy, what is their purpose? 

This step is also to address the issue of acting out 

of habit and not changing the narrative (thought process 

of conditioning) and resultant behaviour which hinders 

many executives from growth into an authentic 

transformational leader. This step utilizes a proactive 

focus to create “new” constructive behaviours. 

You also owe yourself continued growth (through 

continuing education) and joy (from your work, loved 

ones and service to others). Do not fall into the trap of 

the purported transformational leader who although 

they were successful in achieving their business goals 

has failed to transform their own lives. Your feelings and 

attitudes are a barometer for assessing your internal success. 

If you feel joyful, you are more likely than not, succeeding. 

If you feel despondent, bored, anxious, afraid 

or any other destructive emotional states, then you are 

not a transformational leader, but simply pretend to be 

one each day. She pauses in the window and reflects for 

a moment on the sunset. Perhaps tomorrow will be the 

day she begins to metamorphose into an actual transformational 

leader. It is her choice. What will tomorrow 

bring you? What will your legacy be? 


FAIR FORWARD 

“THE AMALGAMATION IS INTENDED 

TO BE A KEY STRATEGIC MOVE” 

SULAJJA FIRODIA MOTWANI IN AN INTERVIEW WITH AMIR HOSSAIN 

CANDIDLY REVEALS THE COMPETITIVE ADVANTAGES OF WOMEN OVER 

MEN IN CORPORATE WORLD 

Sulajja Firodia Motwani, vice-chairperson 

and face of the Kinetic Engineering 

Limited in the country is a lady 

who contributed significantly in making 

the firm reach heights of success. She is 

responsible for the group’s overall business 

strategy and development. Prior to her joining 

in family business, Sulajja worked for a California-based 

investment analytics company 

BARRA International for a period of four 

years. She was voted among the top 25 business 

leaders of the next century in a poll conducted 

by Fortune India. 

What factors do you attribute to the 

success of Kinetic Engineering? 

A company is only as good as its people. 

At Kinetic Engineering, we have a team 

of experienced professionals who specialise 

in strong engineering, process 

planning, manufacturing and what I call, 

Frugal engineering — that is the ability 

to create technically strong solutions 

with a focus on cost. The other vital factor 

is a strong sense of commitment by 

our stakeholders. 

What is the idea behind the recent 

merger between Kinetic Motor and 

Kinetic Engineering? 

The amalgamation is intended to be a 

key strategic move on part of the Kinetic 

Group which will enable achievement 

of the potential of Automotive 

Business including participation of investors, 

strategic partners, lenders and 

other stakeholders. The rationalization 

of business would result in substantial 

synergies including enhanced financial 

strength and flexibility as well as financial 

consolidation of operating activity, 

leading to better governance, reduction 

of cost and higher value creation for 

the stakeholders. 

The merger also marks the culmination 

of restructuring taken up by the 

Kinetic group in recent years where the 

group’s manufacturing and engineering 

entity Kinetic Engineering was restructured 

and positioned to become a 

focused player in the Automotive Systems 

and components business with a 

focus on Powertrain; while the two 

wheeler business in Kinetic Motor 

Company was hived off to a new 

alliance company with the formidable 

Mahindra and Mahindra Group. KMCL 

transferred its operating assets relating 

to two wheeler business from KMCL 

to Mahindra Two Wheeler (MTWL) 

Limited in November 2008, for cash and 

for a 20% strategic stake in MTWL. It 

is expected that this strategic stake 

shall create significant value in the future, 

as Mahindra group should be able 

to leverage its rural penetration to create 

a successful motorcycle business 

for MTWL. 

Merger will result in value addition to 

minority shareholders of both companies, 

by diversification of value and 

value addition through manufacturing 

business as well as investment into 

MTWL. In all, it would enhance the 

shareholders value and allow focused 

course of action. 

Do you feel women have disadvantage 

over men as far as business management 

is concerned? 

If people around you perceive your commitment, 

sincerity and focus, other factors 

such as gender biases will take a back 

seat. I also feel that women have some 

inherent skills, generically speaking, due 


SULAJJA FIRODIA MOTWANI 

"WOMEN EXCEL IN ACADEMICS. 

BUT DESPITE TREMENDOUS 

TALENT, THEY DO NOT ACHIEVE 

THEIR PROFESSIONAL POTENTIAL" 

Sulajja Firodia Motwani, vice-chairperson and face of the 

Kinetic Engineering Limited 

to their upbringing and social mind-set 

and other skills like multitasking, sincerity, 

ability to put others before self. Moreover, 

these advantages can be converted 

into a differentiated management style. 

How can these women truly serve as 

role models to other women? 

This century is considered as the century 

of women and all around us and in all 

spheres of life, women are making great 

progress and assuming important roles. 

We can see more and more successful 

women setting great examples for others 

to chase their dreams. I do hope this 

change gathers momentum. 

What according to you are the essential 

traits to become a successful and inspirational 

leader? 

Each person can have their own unique 

style of leadership and of management. 

But I do believe that a common trait for 

long-term success in being able to motivate 

your organization towards growth 

and excellence has to be your own 

positive attitude towards life and your 

own commitment. 

You are looked upon as a role model by 

many in India. What’s your message to 

the youth and budding women managers 

of the country? 

Women excel in the field of academics. But 

despite tremendous talent, many a times 

they do not achieve their professional potential 

and due success. This is mostly because 

their work takes a back seat in front 

of other priorities. It is in those crucial 

years that they must stay committed, find 

inner strength and above all seek solutions 

and support from their family, to balance 

the two. 

India is at a unique crossroads. For all 

young and educated people, this will throw 

up unprecedented opportunities in all 

sorts of areas especially in the area of entrepreneurship. 

So my message to the 

youth and budding entrepreneurs is that 

they should look ahead, stay positive, work 

hard and make a mark. Its time they make 

a dent in the universe and enhance the 

corporate image of India. 


EXCLUSIVE INTERVIEW 

"TIME MANAGEMENT 

CAN BE TAUGHT" 

PAT BRANS IN AN EXCLUSIVE INTERVIEW WITH NIDHI 

GUPTA EXPLAINS CYCBTH HOW TO BUILD TRUST 

AMONG EMPLOYEES AND MASTER THE MOMENT 

Pat Brans is author of the book Master The Moment: 

fifty CEOs teach you the secrets of time management. 

Affiliate professor at the Grenoble Ecole de Management, 

Brans provides corporate training on time management 

and productivity using a unique methodology, based 

on exclusive tips from the world’s busiest CEOs, and grounded 

in psychology research. Brans has held senior positions with 

three large organizations (Computer Sciences Corporation, 

Hewlett-Packard, and Sybase) 

Time Management being your core area of research, 

how can organisations leverage the same? 

Each individual in a family manages his or her time well, 

then the family as a whole is effective. If each family in 

a community is effective, the community as a whole is 

effective. Take the same principle and apply it to work 

organizations. If all individuals in an enterprise are effective, 

teams will work well. If each team works well, 

departments will produce more results. And if each 

department produces more, the company will have a 

better overall result. 

'Master The Moment' consists of six steps to better 

time management: identify yourself, energize, prioritize, 

optimize, head off problems early, and finish 

things. When I provide training, I like to use the acronym 

HIT (for Habits, Ideas, and Techniques) to help 

people remember that each of these steps consists of 

two habits to develop a few ideas to integrate, and a 

small number of techniques to learn. 

What kinds of leadership skills and management 

skills do these kind of managers need to follow? 

Good leaders always surround themselves with people 

they can trust, rely on and whose skills compliment their 

own. To build trust you have to be trustworthy yourself. 

You have to be somebody others can count on. If you say 

"THE ONLY WAY TO BUILD THAT TRUST IS 

FOR A LEADER TO PLAY BY THE RULES AND 

COMMUNICATE HONESTLY. PEOPLE WANT 

LEADERS WITH PRINCIPLES" 

you’re going to do something, do it. Tell people “no” 

when you have no intention of doing something. It may 

be hard to do at first, but in the long run people will learn 

to count on your honesty. Maintain a consistent style 

and communicate it clearly. If you do these things, people 

will gravitate towards you. 

Can time management be taught. Do you think every 

leader is equipped with this important trait? 

I think time management can be taught. As demonstrated 

by the fifty CEOs featured in my book, it’s 

more about attitude than talent. Experiments show 

that whether it be in sports, work, or intellectual pursuits, 

talented individuals with performance-oriented 

attitudes (those who view their goals as a way of demonstrating 

they are talented) don’t do as well as less 

talented individuals with learning-oriented attitude 

(people who understand that they simply need to 

learn what it takes to reach their goals). 

What are the hurdles a company faces when it brings 

in changes in the style of working with respect to 

time management and multitasking? 

Rather than talk about hurdles, let’s think of some of 

the things we can do to make positive change. There 

are a few things companies can do to discourage multitasking. 

The first thing is to forbid (or at least discourage) 

bringing laptops and cell phones into meetings. 

This message has to come from the top, and upper management 

needs to practice what they preach. 

Companies should offer time management training 

and encourage workers to read books on the subject. If 

every employee picks up just one or two new ideas on 

how to work more effectively, think of how much of a 

difference that would make. 

How important is ethics in leadership? 

Think about how you assess people you first meet and 

adjust that assessment as you get to know them. Over 

time you develop an opinion about how much you can 

trust that person. The only way to build that trust is for 

a leader to play by the rules and communicate honestly. 

People want leaders with principles. They want 

leaders who stand for something and stick to their believes 

when things get difficult. 


LEADING BY READING 

ANSWER TO ALL 

YOUR WHYS 

“WHY SOME PEOPLE AND ORGANIZATIONS 

ARE MORE INNOVATIVE, MORE PROFITABLE, 

COMMAND GREATER LOYALTIES AND ARE ABLE TO 

REPEAT THEIR SUCCESS OVER AND OVER AGAIN” 

NIDHI GUPTA 

Newton was the greatest genius who ever lived 

and he started his theories with a three letter 

word called “WHY”. 

Footprints on the sands of the time are not 

made by sitting down. Lot of hardship, pain, dedication 

makes you to reach to the top. But why are some people 

and organizations more innovative, more influential, and 

more profitable than others? Why do some command 

greater loyalty from customers and employees alike? 

Even among the successful, why are so few able to repeat 

their success over and over? 

This book by Simon Sinek, “Start with Why: How Great 

Leaders Inspire Everyone to Take Action”, answers all the 

above questions in the most convincing manner. The book 

is insightful yet often repeating the same examples many 

times over to make precisely the same point as the first 

time the example was used. On the hindsight, one would 

be inclined to think that virtually everything Sinek wrote 

could have been stated in a 20-page article without leaving 

out anything important and that’s the beauty of this 

book. It is astoundingly powerful. 

The plethora of business and leadership books indicate 

a desire by many to improve either themselves or their 

business. However, Sinek begins by saying what he has to 

offer does not attempt to supplant others, nor will he fix 

all the things that do not work. Instead, he notes "I wrote 

this book as a guide to focus on and amplify the things 

that do work." 

"Why" is the essential question in the book. His premise 

is that companies which do well focus on their "why" 

while many companies which fail are generally found to 

have lost that focus altogether. Sinek believes that if customers 

understand the why of a company, and they believe 

in the why, they will naturally end up buying the 

"what". In other words, people like companies with a vision 

which matches their own. Sinek's ideas about why 

customers (and employees) become loyal to certain companies 

and not others is not only fascinating but has been 

presented in completely new hue. He explained the same 

by giving example, Volkswagen has been the automotive 

equivalent of peace and love since the VW van ruled the 

1960s. They put a vase for flowers on their Beetle's dashboard! 

So when they introduced the Phaeton, a high-end 

luxury car, it failed. Volkswagen’s engineering is legendary 

and the critics loved the Phaeton, but it did not represent 

the "why" of Volkswagen which has attracted so 

many people. Why is Southwest Airlines successful? Why 

did Walmart lose its way. The book explores why people 

buy into an organization or a leader. People do not care 

about what or the how. 'Start With Why' is a very practical 

guide which explains why some companies became 

and some didn’t become successful. Organizations need 

a leader who breathes the “WHY” message. In addition, 

many other people in the same company work out the 

“HOW” of this “WHY” message. This is usually not the 

work of the leader. Steve Jobs at Apple was a good example 

of a “WHY” leader. Apple computers are more expensive 

than PCs, have less software available to use on them, 

and at times are even slower than the competition. So 

why do people buy them? Because they buy into Apple's 

"why". Apple has from the beginning marketed itself as 

the rebel, the individual, the unique voice. They market 

themselves that way because that is how they envision 

themselves. People who buy into that vision will pay more 

for a computer that reflects their values. By focusing on 

their why, Apple has also been able to easily branch out 

from computers and develop the iPod and iPhones. Those 

products fit their image as the rebel. Sinek says their 

products may not even be the best or first on the market, 

but they quickly emerge as the leader. 

Sinek explains how each of us can achieve greater success 

and satisfaction by inspiring others through a shared 

sense of purpose – as opposed to more commonly used 

tactics of coercion and manipulation. “If you follow your 

WHY,” writes Sinek, “others will follow you.” It’s a refreshing 

redefinition of what constitutes true leadership, 

and a great tool for re-infusing your own work with purpose-centered 

passion. This book is impressive, practical, 

credible, simple, clear and compelling. 


POSTSCRIPT 

THE FORTUNE BENEATH INTEGRITY 

Leadership is often defined by amalgamation 

of a few much-touted clichés that are in 

reality nothing but paraphrased thoughts of 

great management thinkers. Among all the 

attributes a CEO needs to possess, one attribute that 

slips between the cup and lips is ‘integrity.’ As told 

in Mahabhrata, no leadership is complete without 

integrity. This can be corroborated with the very 

nomenclature of the word integrity which is derived 

from Latin word 'integer' that means (in arithmetic) 

complete. Integrity revolves around two skills sets: 

high ethics and high professionalism/competence. 

Events like Enron, WorldCom, IMF are living (or 

shall I say dead) illustration of how lack of integrity 

can bring benchmark companies to ruins. In spite 

of having traces of integrity, different CEOs actions reap different 

results. Superimposing the attributes of integrity on the BCG matrix 

would allow a better understanding and wide categorisation of CEOs, 

and the rest would automatically fall into place. 

The Star CEO (high on ethical integrity and high on professional 

integrity): This is the type of CEO who form legacy and is seen as 

leader not only by the employees but the corporate world at large. 

Steve Job’s deep rooted commitment to innovation that produced 

outstanding robust products, always excelled in consumer’s mind 

space. His integrity was impeccable too. He always valued 

shareholders’ interest, but never took any steps for short cuts or 

short term actions to maximise their value. 

Narayan Murthy, whose competence in a 

nutshell includes founding Infosys in 1981 with 

$250, and through the journey of waves of 

success, today commands over $6 billion in 

revenue. Another exemplar of the winning 

combination of performance and ethics is 

Ratan Tata of Tata Group. In 1991, when Ratan 

took over as the head of the group, its turnover 

was Rs.14,000crores – and today its more than 9 times with Rs.129,994 

crores! Talking about integrity, no one can beat Johnson & Johnson’s 

Tylenol episode in 1982. After death of 7 people consuming tainted 

Tylenol, what Johnson & Johnson did was nothing short of an 

incredible effort of damage control. Warnings were distributed to 

the hospitals, production was stalled, advertisements were all over 

the place, and 31 million bottles were pulled back from the market. 

It turned out to be an outstanding piece of promotion that touched 

people’s heart because of its integrity and competence. 

The Cash Cow CEO (low on ethical integrity and high on 

professional integrity): These CEOs are the riskiest CEOs. They are 

those who have ability to take companies to zenith but can’t be 

trusted. These CEOs often indulges in scams, scandals and affairs 

and either ruin the companies financially or dents the company’s 

image. The impacts of these damages can range from mere jerk to 

complete devastation. For instance, HP’s CEO Mark Hurd pulled off 

an incredible feat by forcing a workaround of disjointed HP to five 

Personal Integrity (ethics) 

High 

Low 


consecutive years of revenue and capital gains 

with stocks soaring 130%! However, his personal 

conducts were a botch in the company’s 

reputation. He was alleged of sexual harassment 

to former television actress Jodie Fisher! The 

indictment of his unethical business conduct was 

certainly inimical. Another CEO, Kenneth Lay of 

Enron, who kicked in with a compensation of 

$42.4 million in 1999, was one of the most 

successful CEOs in the US, but his career has been 

clouded by the blotch of Enron scandal! In spite 

of having best policies and corporate structure, 

it was the lack of personal integrity of the 

individual (Kenneth Lay) that made Enron an 

infamous history. 

The Question Mark CEO (high on ethical integrity and low 

on professional integrity): A very rare breed of CEOs. They do 

take wrong decisions but never would damage the image of the 

company. These CEOs should be given more leadership role and 

less decision-making role. Question marks must be analysed in 

order to decide whether they are worth the investment and 

position. Robert Nardelli, the CEO of The Home Depot and later 

on in the same capacity at Chrysler, belongs to this category. 

CNBC has named him as the "Worst American CEOs of All Time". 

At Home Depot, his policies nosedived completely. In 2006, he 

was the only director to attend annual general meeting, and 

more astoundingly he would allow the 

SRAY AGARWAL 

Consulting Editor 

Question Marks 

Ethical but non 

competence 

Dogs 

Non competence 

and non ethical 

Stars 

Competence 

and ethical 

Cash Cows 

Non ethical but 

competence 

Low 

High 

Professional Integrity (competency) 

shareholders to speak for just one minute 

each! He was finally ousted from the 

company on January 2007. He was later 

hired for a panacea in Chrysler’s dwindling 

fortune, which he could not deliver. And 

finally, on April 30, 2009 Chrysler filed 

bankruptcy and Nardelli was sacked again! 

The Dog CEO (low on both): Fire them ASAP. 

John Browne, the CEO of BP, failed in all spheres! Browne was 

touched on the raw as more and more disasters started to line up. 

A major blast in the BP refinery in Texas, and the infamous oil spill 

in Alaska’s Prudhoe Bay. That’s Browne’s professional incompetence. 

Simultaneously, his personal promiscuity was exposed too by a UK 

daily, The Mail. 

In the words of Peter Drucker, “integrity means adhering to 

a code of ethics and doing the right thing by sticking to that 

code.” It’s clear then, that CEOs are a mixed bag, even though 

majority of them are not up to the mark in terms of competence 

and integrity. A survey by the Corporate Executive Board, 

Virginia revealed that, “having high-integrity cultures are 67 

percent less likely to observe significant instances of misconduct.” 

Integrity no doubt is the most sought-after attribute a CEO must 

posses, but then what's more important is the combinations of 

subsets that form that very skill-set. A wrong concoction can be 

really poisonous.

an icmr-iipm think tank publication - Cycbth.org

Create successful ePaper yourself

Delete template?

Save as template?