Managing India - turning a dream into reality
Dear friends,
The new year is but 4 days away. One more year, a turbulant one, will be behind us. It is a good time to reflect on how we are faring as a nation. Today instead of my usual Vizag centric post I thought I should publish a speech delivered by my good friend, an exceptional manager and a visionary Mr. T.G.S. Babu who currently lives and works in Chennai. He worked in Vizag in the late '70s then left for greater assignments in other parts of the country. He gave this keynote speech in February 2010 at the Coimbatore Management Association annual day. Do take the time to read it.
Managing
India: turning a dream into reality
Good evening
to all of you. You have chosen to assemble here on a Sunday evening to listen
to a speech instead of opting for a movie or an outing with the family. I hope
that you will not regret the choice that you made at the end of the event. I
agreed to give a short address on the theme “Managing India: turning a dream
into a reality” that has been chosen by AIMA for its annual day cum national
management day celebrations tomorrow.
Difficult task
We must
admit right at the outset that managing India is an inherently complex task by
virtue of the sheer size and diversity of religions, cultures, and languages that
we have in one country. The task would have been easier, purely from a
managerial standpoint if we had a highly centralised command and control
governance like in China, where decisions are taken and implemented very fast.
However we as a nation have chosen the democratic governance model. Therefore
we must seek to find better management models within the democratic framework.
Collective output
The great
management guru Peter Drucker pointed out decades ago that the single most
defining aspect of our modern society is the role played by organized
institutions in day to day life. In the olden days the society’s performance
and output was purely a sum total of what the individual citizens did; there
were physicians but no hospitals; there were horse carriages but no transport
corporations; there were teachers but no colleges. Individual excellence
mattered. Now, every product and every service is the collective output of many
people in an organization. The best example of this profound transition is Coimbatore
itself; take a look at the role played here by large institutions in the fields
of education, engineering, textiles, and healthcare.
Management skills is crucial
As a natural
corollary, management has become the single most important social function in
modern civilization; because management
skills are at the heart of any organised institution where a collection of
people are to be inspired into consistent performance over a set of agreed goals
through a common purpose and common
culture. And therefore success belongs to that firm, that city, that
society, that nation which masters the science and art of management.
Well-developed nation
Let’s get
back to the theme of “Managing India: turning a dream into reality”. What is my
dream? Given my managerial bent of view, I prefer to substitute the word
“vision” for the word “dream”. And it is my vision that India should be a well developed
nation in the next 25 years respected
not only for its economic power but also its soft power.
You will
notice that I have used the phrase “well developed nation” instead of
the commonly used phrase developed nation.
To my mind the popular term developed
nation has a substantial economic smell, typically meaning more GDP, more
wealth, more facilities, and more good things. So what do I mean by the phrase well developed?
Five characteristics
According to
me a well developed nation will have five characteristics, in this orderIt will be free
of abject poverty; abject poverty defined as a person not being sure of his
next meal
- It will be free of abject poverty; abject poverty defined as a person not being sure of his next meal
- It will pursue balanced affluence; balanced affluence defined as GDP growth without an increase in inequalities
- It will be disciplined; discipline defined as voluntary adherence to rules and norms without the need for policing
- It will show sensitivity to all forms and aspects of life on the earth
- It will have a universal outlook, willing to do what is best for the world as a whole
We must
begin with an honest assessment as to whether we are a well managed nation now.
Regrettably we have failed badly against the very first test of not having
abject poverty. We are indeed a rapidly developing economy, with growing economic
output largely arising out of the increasing domestic consumption of a
burgeoning middle class. But we have a shocking level of abject poverty. We
must work to eliminate this basic flaw.
2. Balanced affluence
Our track
record in the second test of equitable growth appears to be better, because of
the large involvement of the aspiring middle class, particularly in the
services sector. But there is the
danger of growing inequity between urban and rural wealth.
3. Discipline
Now I come
to the third test of being disciplined. I am sure no one will quarrel with me
if I were to say that we are a particularly undisciplined nation. The world sees
us as a noisy, chaotic democracy. In a democracy you get plenty of rights; but with
accompanying responsibilities. For example you have a right to listen to any
music of your choice but you must ensure that you are not disturbing others in
doing this. In our country we have mastered the rights part but not the
responsibilities part. We need to get much better at three things:
- at following rules in all areas; on the road, in the train, in the airport, in the meeting, at work, at home, everywhere
- at the art of debating logically using facts and figures, avoiding emotions
- at a consensus approach to resolving conflicts
How about
our performance in the fourth test of showing sensitivity to all forms of life?
A somewhat mixed record. Thanks to the
Hindu culture and tradition we treat animals and trees also as sacred. The
nobility of the ancient Indian mind can be seen from the following clip from a
Vedic Shanti mantra: “Daivee
swastirastunaha| Swastirmanushebhyaha| Oordhvam jigatu bheshajam| Shanno astu dvipade|
Sham chatushpade| Om shantih, shantih, shantihi|” translatable as: "May the
Gods bless us! Let there be peace to humans. Let the trees and plants grow
abundantly upwards. Let there be peace to two legged creatures. Let there be peace
to four legged creatures. Peace, peace, peace!" What a
broadminded prayer!
But in the
wake of rapid economic development forests, water bodies and wildlife are rapidly depleting. Thousands of species in the air, on land and in the sea have become extinct. The common sparrow has disappeared from most parts of
India. Most Indians are not consciously thinking of their responsibility to
nature. There is a great need for us to regain the traditional Indian respect
for ecology and proactively support nature: trees, hills, lakes, rivers, oceans
and wildlife.
5. Universal outlook
Now I come
to the last test of having a universal outlook. It is here that we as a nation
score better than most nations. Arguably we are one of the least parochial
nations. We acknowledge the goodness of others, the greatness of other
cultures, and the virtues of other languages very easily and integrate them
into our culture. It is this outlook which has produced respect for Indian
intellect and Indian culture everywhere in the world. This broad outlook is a gift that we
inherited from our rishis who pondered over philosophical dilemmas in a very
deep manner and declared the oneness of world in the pithy Sanskrit axiom: Vasudhaiva Kutumbakam (The entire earth
is indeed one family!)
The overall picture
The overall
picture is a nation that is inherently broadminded and spiritual but is not
good at fixing problems and not good at producing effective behaviour from
masses of people. In simple language there is a need for large doses of
management medicine across all spheres in our country.
Action plan - five primary agencies
Now we come to
the action part as to who will infuse this management competence into all
aspects of the Indian society and how will this task be accomplished. To my
mind there are five primary agencies
whose energies need to be galvanised for bringing about this societal
transformation that I have in mind.
These are:
governmental departments, business organizations, educational institutions,
NGOs and individual citizens. Ideally we need to have a master plan where each
of these agencies is focussed on a limited number of social interventions that
will improve our performance on the first 4 qualifications for being a well
developed nation.
Owing to
time constraint and the complexity of subject I will stay clear of the role
that the government can play. Instead I want take you through some specific
ideas for leveraging the remaining 4 agencies, namely business organizations,
educational institutions, NGOs, and individuals through one common noble theme:
Voluntary social responsibility
- Support and enable the creation of a nationwide network of well managed charitable institutions focussed on delivering food, medicine, clothing and education to the poor; I mean institutions such as the Ramakrishna Mission
- Support the work of NGOs in the area of ecological conservation such as tree planting, water bodies conservation, preservation of hills etc in your area
- Inspire your employees to donate 5% of their salaries for charitable causes
- I have identified a single point social agenda for educational institutions: Adopt the village or the colony in the town where you are located
- Similarly I have a single point social agenda for the average citizen: Be disciplined; do not shortcut rules and norms
And now we
come to the trickiest part as to who will drive this transformational agenda.
You need many, many inspired and energetic leaders. And where are they? Right
here in this hall. There is no better community than the professional managers
to lead this effort. They have the managerial skills and they have the influence.
If you are a
CEO, you have enormous power to set the social agenda for your organization.
Use it. If you are a senior manager, you have significant influence within your
company. Use it. If you are a management
teacher, you have a lot of influence over your students. Use it. Each one of
you over your lifetime of a managerial career will come to know a few hundreds, maybe thousands of citizens;
employees, dealers, suppliers, customers, students. Influence them towards the
social agenda!
I estimate that there will be 200,000 managers with a proper
managerial title in the corporate sector itself and perhaps double that number
in the private sector as a whole; may be a million managers if you added the
public sector. If we can inspire even 10% of this group we can do wonders.
The
professional manager as a social change agent! That’s my message.
Comments
Good managers are good implementors . . . and if there are a million of them, India would already have been a well developed nation.
In 1998, when Amartya Sen was felicitated by the GOI for winning the Nobel Prize, I met him to ask if he had an "implementation plan" for his brilliant version of welfare economics - and this is what he replied:
"Historians write history, they do not create it". But then Amartya Sen is no CEO or a professional manager. He is story writer of sorts.
CEOs earn profits for fat-cats and robber-barons too! Maybe if they do the same for those who desperately need some extra money for healthcare & education and some basic nutrition, India could have been a well developed nation. But will they?
'Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime'. - Chinese Proverb
The concept of of Charity is the main cause for abject poverty. It is hypocrisy and/or bigotry of the worst kind.
1.Why not give equity instead of charity? (compulsory stock-option for the poor in all listed companies, instead of MNREGA, subsidies and Direct-Cah-Tranfers . . etc)
2.Why not corporatise national or social responsibility?
3.Why not share profits with the customer / end-user / consumer as a equal partner?
4.Why do not these professional managers, with exceptional skills, manage an anti-corruption industry with a business potential of over a trillion dollars?
The simple answer is BAD people manage India, and WORSE people suck up to them. The reality is a nightmare . . . and yes, I agree, if professional means GOOD, then we need GOOD managers to manage it?
2013/14 will decide who will manage India, the good or the bad or the ugly hypocrite?
Cheers!