Sunday, September 25, 2011

Leadership Conundrums and Solutions

Why is leadership such a contentious issue in Management literature? There is only one way to calculate IRR (Internal Rate of Return), but innumerable theories and ways on how to lead. We have not seen the end of this subject! New articles on leadership continue to surface. Some of them appear to be controversial. Dhoni, India's current cricket captain for example, is highly recognized for his leadership skills. However, the following link indicates a different line:


Should practitioners of Management emulate Dhoni? I personally prefer other models, but respect the choices of others in this matter.

Perhaps there are multiple ways of leading people. I sense that the spread of education and financial security spawns new leadership styles. You cannot inspire the rich and famous in the same way as their less fortunate fellows. This applies to intellectual resources as much as to material ones. I suspect that most people want to emerge as leaders. Those who lack confidence and opportunities may exhibit servile qualities, but harbor ambitions of power and influence at the same time.

A mentor is a great help in getting opportunities to lead. The reverse is not always true however, because deserving people can move on from circumstances in which they feel oppressed.

I suggest that integrity is at the core of leadership. People flock to those they trust. However, no leader can take followers for granted. That is why the fall of leaders is so inexorable over time. Even Mahatma Gandhi has trenchant critics. A friend recently counseled me to listen to my inner voice when I confronted him with an issue related to spiritual leadership. I have concluded that this could be an optimal approach, and the one adopted by relatively successful leaders as well. Be consistent and transparent in thought. Those who wish to follow you will do so automatically if gradually.

Such an approach cannot work in an organizational setting, which brings the nature of leadership on the table. There are inherent differences between obedience and sharing values. No mortal can force others to discard their thinking and analytical faculties. It is safe to keep these aspects in mind when ordering others around or wallowing in the apparent adulation of those who wish to curry favor.

Communication skills are efficient substitutes for leadership. We can use the principles and methods of the Personality Grid and of Transactional Analysis to influence actions and even perceptions of others. These may lead to positions of leadership if transactions focus on a homogeneous group of people. I suspect that modern and self-promoted Gurus use such approaches, even if largely by instinct.

MBO (Management by Objectives) is another alternative to leadership. Let colleagues agree on roles, tasks, deadlines and resources. Why bother with leadership? This is my view. I would like to know yours.

I can help with using the Personality Grid, Transactional Analysis and MBO.

Who is the leader of the pack of children in the photograph below?



I told these five boys about the five benefits of silica for crops and trees. The fellow next to me (second from left) rattled off all five benefits after me and won Rs 50 ($1). It was not a matter of memory alone for he seemed to wield some influence over the others, especially the guy on his left who seemed to know the answers just as well. He was also instrumental in keeping the girls at bay! This probably won him the support of the male chauvinist village elders. Leadership can be situational. Perhaps each of the boys in the picture as well as all the excluded girls could be popular leaders in the right circumstances. 

The picture is from Malihabad in India (Uttar Pradesh-close to Lucknow).

Can you think of ways in which introverts and followers can transform in to positions of authority and influence?








Sunday, September 18, 2011

Zero Based Budgeting

A book on Zero Based Budgeting (ZBB) changed my professional life. I think I came across it at an airport bookstore in the early 1980s. President Carter used ZBB during his administration. Perhaps the Washington of today should return to it!

ZBB does not allow established costs to continue without fresh justification. We tend to extrapolate historical costs and revenues as well in to the future. Jobs are the most sensitive of fixed costs. No one can propose losses of own jobs and those of close friends. However, ZBB requires that all positions in an organization are looked at afresh during a budgeting process. Task consolidation and suspension of fresh recruitment are common though less invasive outcomes of ZBB.

It is easier to apply ZBB to outsourced services such as advertising. Travel budgets are favorites targets of all cost cutting exercises, but ZBB is a potential exception in this respect. One can retain or even enhance any cost proposal that has credible, specific, and probable prospects of gain. Lateral thinking is an important corollary to ZBB. Confrontations with binary choices plaque ZBB.

An excellent way to initiate ZBB thinking is to apply it to yourself, especially if you are in a senior position of influence. One of my former colleagues did this by flying internationally in economy though he was entitled to First Class luxury and privileges. Another voluntarily downgraded the standard of hotel accommodation for himself.

ZBB has useful applications in personal life. There are a number of fixed expenses such as vacations on which we cut back instinctively in lean times. However, searching questions can lead to substantial reductions of energy costs and mundane things like frequent dry cleaning.

The ZBB process is relatively simple, though automation can consume some resources at the outset in large organizations. You have to make a detailed and written justification for each item of expense. All proposals are vetted, preferably by more than one person. No expense finds place in a budget if it is not proposed or if it is rejected.

Write to me if you would like to know more, or apply it in your situation.

 What if you were in charge of Gudiwada in coastal Andhra Pradesh. A street scene from this busting town appears below:




Which kinds of budgets would you enhance? How would you link things such as garbage clearance with monies spent on paper for such essential services? Which budgets would you cut and how? Many people employed by corporations that work for profits criticize government employees and politicians for frittering away resources. Could any such critic do better in real life?

I would love to hear from you!








Sunday, September 11, 2011

Psychology in Business and Management

It is not common to spend resources in finding out how people think and why. Advertising types do worry about responses from their targets, but the use of formal psychology is rare. Some Human Resource Development functions do encourage consultants and advisers from the broad area of neuroscience, but this emerging field is not as sound as the established methods of psychology. Enlightened recruiters do use 'shrinks' of various hues to help find the right candidates for important jobs, but this is not repeated in developing the supply chain, or in strategic decisions related to areas other than personnel.

I was introduced to the field by my employers when I was a salesperson. I must say that the ability to type personalities of customers is the most significant skill I learned after leaving the cloisters of Management school. Later, I was exposed to Transaction Analysis and to the Jo Hari window, both of which I have also found to be extremely useful in professional life. Fortunately, it is possible to get a working knowledge of how to apply these concepts through the Internet. Let me know if you would like links to web sites that you can use to start.

Dr Zwicky was a Management Guru in an international corporation that I was privileged to serve. He taught me, with a gaggle of my colleagues, that an organization is made of humans with feelings, emotions, and thinking powers. I used to be very 'left-brain' about such things before I encountered Dr Zwicky. He also, on a personal level, told me to switch from dark and forbidding spectacle frames to gentler and flesh-colored ones. However, that did not work so well, for people still find me 'avoidable'!

I have found psychology just as useful in understanding parts of myself, as in dealing with others. I have also found that many people who may be generally thought of as mentally normal may in fact suffer from disorders and pathologies of their brain functions. Depression, anxiety, and attention deficits are most common in my personal experience. It is nearly insulting to tell someone in India to see a psychiatrist, but I must say that it could often be the most useful advice to dish out and to receive as well!

Psychology is very relevant for business. Since one does not have to invest colossal amounts in it, it is a path that small enterprises and individual professionals can follow with significant benefits all around.

The Internet does have an array of tests that people can take to assess their levels of mental health. Do write to me if you would like to try them.


Here is a picture from a voluntary service for cancer patients and their families:



The people who use this service most often have no health insurance at all. They have to raise funds to keep their loved ones alive by wandering around philanthropic organizations with the proverbial begging bowl. The service is run by Mr Sanjeev Sharma (facing the camera and in a white shirt). Sanjeev was moved to start voluntary service after he lost a son to cancer. The service breathes new hope in to countless souls, like the two people on the left of the photograph, who come to Sanjeev and his colleagues.

Perhaps you have been in such a situation at some point. How did you respond? Could psychology help in such cases? No money changes hands between a voluntary service and the community it serves, but it is still an extreme manifestation of the contradictions we may face in business life. Participating in voluntary work can be a kind of practical approach to hands-on learning of psychology for business and management.



Sunday, September 4, 2011

Health as a Management Concern



It has been treated conventionally as a personal matter. Most corporations have marginal investments in keeping their employees fit, but they do not usually pay as much attention to it as to other aspects of Human Resource Development.

I regret not having taken better care of my health when I was a young professional. My family and friends occasionally warned me about this. I believed in immersing myself in work, and ignored established principles of preventive health-care.

Here are some outputs of my hindsight:

1. Have a complete medical review every year, and maintain a file on the subject.
2. Avoid business meals, and stick to clean drinking water or fruits during meetings, visits to associates, and discussions.
3. Have breakfast, lunch, and dinner on time. Do not drink socially, and try to eat alone. Stay away from buffets.
4. Make time for regular exercise.
5. Get adequate accident, health, and life insurance policies.

These matters are so basic that I write them at the risk of losing readers! Nevertheless, it will be worthwhile if even one person veers away from the path that I tread during my active days.

We can all agree that health is an invaluable business asset. It is worth leaving no stone unturned to stay fit.

Perhaps we should consider some careers that keep practitioners fit in the course of routine duties!