In recent business times of India, no event
has triggered so much surprise and debate as the return of NR Narayana Murthy
from retirement as the Executive Chairman of Infosys, the Indian information
technology iconic bellwether struggling to remain on a growth path (please also
see: http://cbrao2008.blogspot.in/2013/06/the-return-of-narayana-murthy-fast.html).
There have been positive and negative angles to the news of Murthy’s comeback. On
the positive side, many have held that there is nothing wrong, and everything
to support, in such a towering personality returning to bring back to health
the company he founded and grew with his co-promoters. On the negative side,
many also have held the return to be a reflection of the inadequacy of the past
leadership development, and hence a prognosis of future insufficiency of
leadership development. After the
initial swell of the welcome notes, analysts believe that only future events
can judge if the return would be a positive or a negative for the long term
future of Infosys and the overall gamut of business leadership development in
India, including strengths and weaknesses of a possible dynastic succession.
For the larger body of students of technology
and management as well as other professions, aspiring entrants to corporations
and budding leaders, the return of Narayana Murthy must signify an entirely
different aspect of corporate life and career development. It is not uncommon
for scores of employees at all levels of an organization to leave, and for some
of them to return to their alma mater. The twist here is that such returns are
often seen as the return of the prodigal rather than the return of the savior as
is the case with the return of towering leaders such as Murthy. Given that
every unit of work in a corporation has its importance, the return of the
employees at whatever level should qualify to be deemed as the return of the
savior. That, however, hardly is the case except in certain truly high level
leadership positions. As youngsters watch the unwinding of the Murthy2.0 story
in Infosys3.0 saga, apart from the lessons to learn, a key self-learning
objective must be how the young aspirants would be seen as saviors rather than
prodigals, should such exit and return episodes occur to them.
Demand-supply perspectives
As with every aspect of human endeavor,
factors of demand and supply determine the relative importance of any material
or non-material resource. At a gross level, from a human resource perspective, in
a company or in an industry there would only be few leaders of a comparable caliber
while there could be hundreds of executives and managers at lower levels with
comparable caliber. At a gross level, from a business growth perspective, there
could be only a few corporations that are willing to introspect and take
radical measures to revert to their growth path as Infosys has boldly done. At
a gross level, therefore, the demand-supply gap determines whether the return
of any individual professional is deemed to be the return of a prodigal or a
savior. The phenomenon of surplus-scarcity can, however, be addressed efficiently
by individuals and corporations equally by deploying the concept of substitutability
appropriately.
The relationship between the organization and
its human resources is a paradoxical one. Organizations benefit if the
available skill sets are both standardized and unique. Standardized skills
enable the companies lower the bargaining power of candidates and reduce the
attrition pressure of employees. At the
same time, unique skills enable the companies enhance their competitive
advantage in an industry and enhance the ability to reward and retain their
employees. For employees, unique skills need not only continuous self-development
but also an organizational ecosystem that facilitates development and
deployment of unique skills. If an organization’s human resource base comprises
only generic and standardized skill sets, it is unlikely that such an
organization would become highly competitive. On the other hand, if an
organization seeks only highly unique skills, conventional organizational
systems would fail to cope with the need for heightened reward systems. The
paradox needs resolution.
Prodigal minds and savior skills
Aspirations need to be matched by
achievements. What we see in some organizations is a constant unrest in young operators,
officers and executives to grow in their careers at a fast clip. Many times
such young employees imagine a superior work opportunity and career package in
other companies. When employees move far too quickly out of an organization in
pursuit of short term career boost, such decisions, more often than not, result
in later day distress. The foundations of such fast moving careers, instead of
being reinforced by industry or skill distinction, tend to be brittle with
disconnected skills and inadequate depth and breadth. At times, the best way to
address the gaps is to retrace the steps and return to the base organization as
a prodigal. In some cases, organizations also make mistakes in judging
employees and release them too soon. Both organizations and employees need to
be prodigal in such occasions. While this may cause some emotional distress,
correcting the missteps, and more importantly rebuilding the stronger skill
base, provides longer term solidity to the employee careers and organizational
strength. Eventually, employees and organizations may benefit from the
phenomenon of prodigal minds.
Renunciation must take place only after
actualization. Leaders too face their share of needlessly fast moves, albeit into
sunset. Leaders play a crucial role in not only growing their corporations but
also preparing them for sustainability. Actualization for a leader is not
complete until he or she is able to execute a business model and build a
leadership team that can take the execution forward, until the firm is under a
need, or in preparedness, for a new business model with an appropriate
leadership model. When Narayana Murthy moved out of Infosys, it was probably
actualization that was incomplete and renunciation that came on too soon. In retrospect,
it would appear to be more of governance redistribution rather than undertaking
the right change at the right time (please also see: http://cbrao2008.blogspot.in/2011/05/infosys-board-rejig-crowded-at-top.html
). Saviors possess leadership skills
that have built and grown companies with achievements that are industry acclaimed.
Saviors typically have stature and charisma that can rebuild confidence in
internal and external stakeholders, and turn situations around for stalled
corporations.
Prodigals as saviors
It is not that prodigals need to be at the
bottom of the organizational pyramid and saviors at the top of the pyramid. Youngsters
need to have the skills and the stamina that can make unique contributions in
the domains in which they operate in their organizations, however small such
domains may be. A product designer, a market researcher, a process engineer, a
project executive, a quality officer and a salesperson all have their respective
opportunities to be distinctive and become much sought after executives in
their domains. The early development of savior skills in a youngster is a good augury
for organizational competitiveness. Youngsters need to complement their subject
specialization with practical expertise and a breadth of outlook. An automobile
component designer, for example, would need to be conscious of the challenges
of material technologies on one hand and the complexities of manufacturing on
the other. The more end-to-end connected a specialized youngster’s thinking is,
and the more broad-spectral his or her aptitude is, the more he or she would be
able to add value to his or her functional competencies. Such talent at the bottom of the pyramid is
often hard to find, and that is the reason it is so valuable to build a cadre
of saviors at the bottom of the pyramid.
This requires that organizations should focus
on all-round skill integration in youngsters. The need for ready to use talent
is so high in organizations that fewer organizations are willing to commit the
lead time and effort to train youngsters in all the departments of an
organization prior to their getting absorbed in their core functions. Early departmental
rotation provides a broad perspective of a corporation’s value chain without
compromising the core competence. If entrepreneurs such as Murthy emerge as saviors
it is not necessarily only because of any superior skills and attributes but
also because of their intimate association with the total value chain of the
organizations as they establish and build their organizations. Professional organizations
which compartmentalize functions as organizational silos in the name of specialization
need to consciously adapt policies of all round development of skills in their
youngsters. The greater the commitment to graduate and post-graduate rotational
training and development programs for youngsters the corporation has, the
greater will be the development of savior skills in the organization.
From prodigal to savior
Too much of functional specialization with
too much of an emphasis on assigned task delivery but without an understanding
of the total value chain contribution on the part of youngsters gives them a
needlessly elevated view of their contribution. Organizations-in-silos which are aware of the gap
between the due requirements of organizational competitiveness and undue
expectations arising from tiny contributions in narrow niches struggle to
explain and retain talent consummately. Organizations that are unbounded in
thinking and creative in execution tend to be conscious of the need to leverage
young talent as much as possible to develop deep knowledge, broad perspectives
and futuristic vision in them. Such organizations do not fight shy of nurturing
and rewarding saviors from the early years of their careers. Youngsters who
join organizations must understand the responsibilities and nuances of
developing savior skills from the early years, and keep reinforcing the savior
skills as they move up the managerial and leadership hierarchy. Such leveraged
talent provides sustainable competitive advantage to corporations.
Posted by Dr CB Rao on June 9, 2013
1 comment:
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