Q. You have consulted a lot of Fortune 500 companies in the US, Europe and India. What difference have you found in the leadership styles?
A. Leadership styles vary from one country to another. Even global companies often reflect the leadership style of their countries. In the US, companies typically have a strong style of leadership that is also highly flamboyant. In contrast, the leadership style in Europe is generally more humanistic and less ostentatious. German companies favour leaders who are technically strong. Austrian leadership is similarly hierarchical but there is more warmth in the conduct of work. Swedish leaders see themselves as team players and search for consensus in all decisions.
Q. What makes Indian leaders different?
A. I would say the Indian view of leadership is relatively old-fashioned. Indian business leader is usually a paternalistic figure, expected to nurture the company and employees in a caring manner. He or she acts like the head of a large family.
This aspect of leadership is still found in other countries but more in businesses that are family-owned or those grown from smaller towns. For example, the leadership style of Sam Walton, the late founder of Wal-Mart, would not have been out of place in an Indian setting.
Q. What is the common leadership style in India? How effective is it?
A. In India, companies are often run by benevolent leaders who command great respect. The leader tends to take a long-term view and is sensitive towards employees. This leadership style is quite effective when the company is doing well, but it poses challenges when drastic changes are required.
Q. What are the challenges facing Indian leaders?
A. Industry leaders in India face challenges on various fronts – the chaotic external environment, paucity of trained human resources, slowdown in the economy and comparative absence of innovation within larger companies. I think industry leaders will have to look beyond the boundaries of their companies to assume more active role in shaping the destiny of the country. They will have to cultivate a culture of professionalism, of uncompromising quality and of innovation.
Q. What is your leadership style? How has it evolved over the years?
A. It is difficult to view one’s own self objectively. But, I am inherently a design-oriented person rather than a command-and-control person.
Q. How would you compare the leadership scenario a decade ago and today?
A. A couple of decades ago, we saw the emergence of what might be called as the “NRN effect” – the type of modest, simple but visionary leadership personified by N.R. Narayana Murthy. This new crop of leaders did not come from business families. Their success was based on pure merit and hard work. They came across as people-next-door and were seen as generous and caring.
In the last decade, we have seen the emergence of young leaders, more aggressive and dynamic on the surface. They are global leaders, as comfortable in New York or London or Frankfurt as in Delhi, Bangalore or Pune. But I think the legacy of people like NRN is still very much alive.
Q. How would you differentiate between traditional and modern Indian leadership style?
A. The biggest difference is that seniority-based leadership has become less important. Indian companies have become strong in their internal processes, so you do not need dominant personalities to ensure compliance and efficiency. What you need is agility, innovation, customer orientation and employee-friendliness, and these desired business imperatives are getting reflected in the type of people rising to leadership positions today in Indian companies.
Q. Is there anything substantial that Indian leaders can learn from their counterparts in other countries?
A. Many Indian business leaders have been educated in top management schools in India and abroad and almost all of them are avid readers of management books. I think they have taken many management ideas and advanced them in practice to new levels. However, we still have work to do on how to have constructive meetings and discussions. Secondly, our young leaders sometimes lack the ability to run projects and initiatives on their own. This is another thing we can definitely learn from our counterparts in more mature economies.
Q. How do you see the future of Indian leadership?
A. Indian business leadership is more likely to become like western business leadership in future. While western professionalism is certainly good to copy, we must not copy certain aspects that are seen as emblematic of US capitalist leadership. India is going to be a leader of the world one day. It would enrich the diversity of our planet.
