Leadership Styles of Indian Business Leaders

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Leadership styles of two Indian Business Leaders- Dhirubhai Ambani

(RIL), and Azim Hasham Premji (Wipro)

A business leader is he who can provide leadership in business, simply

saying. This leadership in business can be measured in terms of

building a very successful enterprise, in terms of market

capitalisation, innovativeness of the product and dominance in the

market. Outstanding leaders are those who set audacious objectives and

get people to own and achieve them. Like our very own Dhirubhai

Ambani, a man with a world view.

Like all good Hindus, his philosophy of life was simple. He believed

that every individual is born into an orbit in which he will probably

remain for the rest of his life. To be successful, you must break out

of your orbit and enter the one above. After a spin in that orbit, you

must break into the next one, and so on until you reach the top.

How did Dhirubhai Ambani do this? By winning in the market, acquiring

an impressive set of competencies, and by making a large enough number

of people share his dreams.

Many critics argue that Reliance's phenomenal success, particularly in

the 1970s and 1980s, was substantially due to some Government rules

and regulations(License Raj), which seemed to have been designed by

Reliance for Reliance. But there is an old adage that you can take a

camel to the water's edge, but you can't make him drink. Everyone

manipulated the corridors of power, Reliance only did that better.


Clearly, Reliance's growth spiral was built on three processes. Its

competencies in project management, finance mobilisation and

influencing the regulatory environment supported its high volume —

low-cost strategy of putting up ever-larger scale plants.

Only a few, like Dhirubhai Ambani, scaled all three. The secret? When

everyone thought he had finally arrived, he himself felt he was only

just beginning.

It is hard to imagine Reliance without Dhirubhai Ambani. The teacher's

son from Gujarat state built his sprawling empire from scratch.From

humble beginnings in textiles, the group now comprises a

fully-integrated polymers, fibers and chemicals business, with

upstream activity in oil refining and power and ambitions in

exploration, gasoline retailing, life sciences and telecom/information

technology.

Subscribing to an unfailing commitment to excellence and demanding the

same from others is the kernel of Dhirubhai's leadership style. This

is ensured by continuous attention to development of skills, by

setting exacting performance targets, and by investing a humane

outlook in the entire operation.

In short, Dhirubhai was a charismatic leader, who never followed a

text book style of management. Instead he developed a unique style,

which combined the American style of entrepreneurship with the

Japanese focus on the latest technology. To this he added the innate


shrewdness of a Gujarati businessman. He displayed an amazingly rare

ability to influence people. His genius lay in figuring out a win-win

solution, producing a spectacular buy-in from the people he dealt

with.

That's why, for all his success, Azim HashamPremji, the tech-man of

India, seems focused on just one goal: even more success.

Wipro has grown from a small producer of cooking oil founded by his

father in 1945 to a colossus by Indian standards: 23,000 employees,

$902 million in revenues(2003).

Over the years, Premji has impressed business leaders worldwide with

his honesty, financial discipline, and ability to attract top

professionals. "He does business straight, eyeball to eyeball," says

former General Electric Co. chairman and CEO John F. "Jack" Welch, who

has worked with Premji as a partner and customer for the past decade.

His integrity is legendary in the business circuit.

He has adopted the rigorous processes of Six Sigma quality standards

to stay nimble as the company grows.

The workaholic chairman doesn't lose much sleep over share price

either. Premji's dominant stake in the company lets him execute


strategy without worrying about pleasing shareholders. "The company is

run to deliver its long-term and short-term goals, not with any view

of the stock price," says Premji.

Employees say Premji is often better prepared for meetings than they

are. He grills executives with tough questions but welcomes feedback

and dissenting opinions. While Premji can be curt, he rarely raises

his voice, instead expressing displeasure through calm, public

observations about where and how managers have failed. "I demand of

others only what I demand of myself," Premji says. He is an exacting

task master, an authoritarian personality.

While both Dhirubhai and Premji are looked up to by their employees,

Wipro, nonetheless, has higher attrition rates, perhaps because they

think it's a low-return job, with them having no stakes in the

company.

Premji firmly believes that ordinary people are capable of

extraordinary things. The key to this is creating highly charged

teams. He takes a personal interest in developing teams and leaders.

He invests significant time as a faculty in Wipro's leadership

development programs. Dhirubhai, on the other hand preferred to be

surrounded by loyalists. Azim Premji believes in creating a pipeline

of available leadership options, in grooming next generation leaders.

"Too much attention is paid to individuals as leaders. Leadership is

much more than that. It is about every small act of each person in an

organisation. Outstanding organisations are built on small acts of

leadership, day on day. We have tried to build a culture of leadership


around this simple thought, and I think that if Wipro is rated as the

'Top Leadership' company, it is a summation of the acts of leadership

of Wipro's 30,000 employees." : Azim Premji

His leadership style has evolved directly from his character. Over the

years, he has tried hard to separate his self from the company he

mostly owns. His lifestyle resembles that of an ascetic entrepreneur

of the Protestant age. Frugal and successful. Not using the money and

power to further individual interests, but rising above it. And he

brings these values to his organization as well.

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