People
People
Results
Results
People
People
Leadership
Leadership
Policy
Policy &
& Strategy
Strategy
Partnerships
Partnerships
&
& Resources
Resources
Processes
Processes
Customer
Customer
Results
Results
Key
Key
Performance
Performance
Results
Results
Society
Society
Results
Results
(An In house e-letter from TQM Co- ordination centre, BHEL Hyderabad)
Volume: 06
FEBRUARY 2007
Issue: 09
(Articles/ remarks with heading marked thus “**”” or in Italics are editor’s original ideas. Copying is permitted but not without referring to the source)
Lessons on Excellence from Chanakya
Editor- What we read today on Excellence in nothing
new. The thoughts were expressed by many learned
ones, even centuries back. May be, we are rediscovering them now. The reason behind not
attaining Excellence is only one- NOT PRACTICING
on the learnings! Just read on what was said by
Chankaya, 2400 years back and you would agree
that thoughts on managing a country or an
organization in an Excellent way are not really new!
People, organizations and Management consultants
are changing but the basic fundamentals are same.
(Lessons on Excellence are placed in brackets
in Blue Font. The following is a compilation from writings at
www.esamskriti.com
Who was Kautilya ? His name was Vishnugupta. He is believed to be from Kerala or a
North Indian who was born & educated in the university town of Taxila. A knowledgeable
person he landed up in the court of the Magadha (in Bihar) king Dhana-Nanda to display his
knowledge. Humiliated by the King, he vowed not to tie his forelock knot again until he had
destroyed the Nanda dynasty. While searching for a person who would help him achieve
his objective, he came upon Chandragupta, took to him to Takshila and gave him
education fit for a future king. Whether Kautilya existed in 320 BC or 150 AD in no way
undermines the greatness of his thoughts and writings. (Lesson- Vision was clear to the
doer and groomed (trained) the person for the role. Picking up a Youngster with a
required Competency and Training to take up role of Leadership tomorrow is
important for success)
Strategy - They started attacking the Nanda empire but failed. Legend has it that they
understood the reasons for their failure when they heard a women scold her child " You are
just like Chandragupta (CG)! Because her son had got his fingers burnt by starting to eat
from the center of a hot dish." They changed their tactics and began to attack from the
frontiers. What CG was doing earlier was to try and capture the interior areas. After
capturing one area he would go for another but would face in a revolt in the area previously
captured. So when you have to capture, go step by step, take the outer areas first, establish
physical control, that way your opponents have to keep on moving inland, keep up the
pressure and they have to succumb. Kautilya and Chandra Gupta changed their strategy
and began attacking from the frontiers till they converged on Pataliputra, defeated the
Nanda king and installed Chandra Gupta as king. (Lesson- Learnings are important for
Excellence. Learn from all possible sources- even from “out of domain’ industry.
Always spend more time in building up a Sound Strategy to win the “War in Market”)
Arthashastra- Lessons for Management Theory and Practice
by Dr. Anil M. Naik (A Mumbai based Management Consultant.)
The treatise on Economic Administration was written by Kautilya in the 4th century before
Christ. It consists of 15 chapter, 380 Shlokas and 4968 Sutras. In all probability, this treatise
is the first ever book written on Practice of Management. It is essentially on the art of
governance and has an instructional tone.
Kautilya wrote this treatise for his swamy (the king) Chandragupta Maurya and stated in its
preface that it has been written as a guide for "those who govern". Kautilya was interested
in establishment and operation of the machinery through which the king preserves the
integrity and solidarity of the State and generates power (Lesson- Proper Organization
Structure is must to achieve Results)
On the organizational aspects, Kautilya
evolves an elaborate hierarchy under the
king. The king appoints Amatya, the Prime
Minister. Amatya operates the day-to-day
machinery of the State through a council of
officials consisting of Mantris, the Ministers,
Senapati, the warlord or the Defence
Minister, Purohit, the Chief Justice and
Yuvaraj, the Heir Apparent or identified
successor to the throne. (Lesson- Day to
day working should left to lower level
and that Successor must be identified in
the structure)
It is astonishing to observe that several
concepts of present day management
theories have been explicitly explained by
Kautilya in his work. As in the present day
management, the importance of vision,
mission and motivation was captured in
Arthashastra. Kautilya advise his swamy to
rule through Prabhu Shakti (Vision), Mantra
Shakti (Mission) and Utsah Sahkti
(motivation). Kautilya's concept of the
objectives of a king seem to be virtually
adopted by Peter Drucker in his book,
Managing For Results.
It is indeed interesting to note that Kautilya,
having woven an elaborate organization, moves to set up policies and procedures i.e.
business processes. Arthashashtra has detailed policies for the society, individual
industries, labor and employment, calamities and control of vices. At this stage, he shows
the depth of his knowledge of the major element of effective and efficient
implementation of business processes, namely, the human aspect of management.
Kautilya at this stage, reminds his Swamy that sound knowledge of complex human nature
is essential in effective, efficient and honest running of the State machinery. He warns of
two undesirable attitudes of human nature, Pramada, meaning excess and Alasya, meaning
inactivity, to be watched for and avoided. This is where, according to Kautilya, the
leadership counts. (Lesson- Leaders need to understand the human (people in EFQM
model) nature for effective implementation of Business Processes. Implementation
(Deployment) is where most of the organizations are failing- Processes should not
remain in words alone but should reflect in actions).
The essence of leadership, he stresses,
lies in its acceptance by the subjects. He
therefore, advises the Swamy never to forget
the two pillars of the art of governance: Nyay,
the justice and Dharma, the ethics. He
advises the Swamy to introspect to identify
his atma doshas, i.e. deficiencies to
improve or develop himself. He further
advises his Swamy to study deficiencies of his
cabinet members and take steps to improve
upon them. As regards Yuvaraj, he advises
specific training to prepare him for the
eventual succession. (Lesson- Leaders
should a) get feedback on their behavior
style b) be a role model for values c)
Succession planning should be done)
Kautilya seems to have given a lot of
thought to human resource development
for the government machinery. He is
specific about the qualities Mantris
must possess. He writes about these
qualities as qualifying standards for
appointment as a Mantri. These qualities
are:
Drudhachitta
(power
of
concentration),
Shilavan
(character),
Pragna (thinking capability), Vangmi
(communication skills) and Daksha
(observation / vigilance). In addition, he
highlights the competencies that a Mantri
must possess. These competencies are
the same as the competencies
advocated by the management gurus of the present times, namely, Knowledge, Skills
and Attitude. (Lesson- The competencies of Individuals required for a job should be
defined and selection be done accordingly)
Kautilya's knowledge about human behavior is really astounding. He advises his Swamy
about six emotional devils which he should avoid and ensure that his cabinet
members also avoid. He makes it amply clear that times six emotional devils do not allow
appropriate decision making in any operation. The emotional devils identified by Kautilya
are: Kama (lust), Krodha (anger), Lobha (greed), Mana (vanity), Mada (haughtiness)
and Harsh (overjoy).
Finally, from the point of view of management of the kingdom, Kautilya's advice to his
Swamy is indeed introspective and valid to the corporate world of the 21st century. His
advice is as under:
•
Efficient management means setting up of realistic targets and meeting targets
without using over zealous methods.
•
Swamy must bear in his mind that a king with depleted treasury is a weak king
and the easiest target for a take over.
•
Profitability should not only mean surplus over costs. It should also mean provision
of investment for future growth.
•
Swamy can reign only with the help of others. He should appoint not more than
four advisors and sufficient number of Mantris to look after the governance of
the State machinery. While limiting the span of control for the Swamy, Kautilya
warns against centralization of power in the hands of the Swamy by stating "one
wheel alone does not move a chariot".
•
Swamy should take proper care in appointing advisors. He should have clarity in
terms of qualities an advisor should possess. Most important being practical
experience, thinking prowess, sound judgement and ability to differ while keeping
total devotion to the Swamy.
Pearls of Wisdom from Arthashastra
by Dr. Anil M. Naik
Knowledge: Small difference in ability can lead to enormous differences in results.
Main aim throughout one's career is to identify, acquire and develop these differences,
which yield superior results. (Lesson- Knowledge Management gives the cutting edge)
Planning: By failing to plan, you are planning to fail. Every effective performance is based
on thorough preparation. (Lesson- P of PDCA Cycle is the most important for success)
You should be firm about your goal, but flexible about the process of reaching the goal.
Leadership: A great leader shows ability to make decision and act boldly in the face of
setbacks and adversity.
Leaders are sensitive to and are aware of the needs, feelings and motivation of those they
lead. (Lesson- Leaders need to interact with and understand People’s expectations)
Leaders develop ability to predict and anticipate the future. (Lesson- Predict business
risks)
Self-discipline is the most important personal quality of a leader. (Lesson- Leaders need to
role Model)
Success: Most important basis of success in any venture is pragmatism. Do not ask where
the new idea came from or who thought of it first. Ask only one question: does it work?
Success needs action. Action needs initiative.
For sustaining success, initiative to collect feedback is important. Feedback allows you to
take corrective action, which sustains success. (Lesson- If Results are not forthcoming,
take feedback and analyze the Enablers)
For every effect, there is a specific cause. Success is not an accident. Success is not based
on chance. Success is not a matter of luck. Success is the result of well thought out action.
(Lesson- All Results should be caused by Enablers)
Conclusion: Arthashstra written in the 4th century before Christ, is a work whose relevance
has not faded even after 24 centuries have gone by. Arthashastra is the evidence of the
intellectual capital India possessed in its glorious past. We have the tradition of the past. We
need the attitude for resurrecting and recreating the intellectual capital for the future.