A conversation with R. Gopalakrishnan

It was a tradition in TATA that the group’s leaders would play an important role in national economic development over several decades. Which are the other companies in India that are in the same mould? How can new-age companies incorporate the same in their organisation ethos?

Birla, Bajaj, Godrej are prominent names that fit the bill among traditional Indian family businesses. Hindustan Lever stands out uniquely among international companies. Whether they are new age or not, there are companies that perceive their purpose and mission as being a natural part and responsible member of the community—examples are Infosys and Wipro. That is how new age companies can assimilate such values into their organizational ethos.

How can companies become engaged with more holistic problems that occur in industry, society, nation, values and people? 

Companies are not replacements for government, they can advance public programs through synergy. Companies must leverage their geographic or domain strengths which are unique to them as Lever did with Etah Rural Development and Shakti Amma, Tata did at Jamshedpur and Mithapur, Kirloskar did at Kirloskarwadi.

Based on trends and disruptions, what kind of future do you imagine for corporate India? 

I visualize great opportunities for Indian business to emerge as great institutions, deeply contributing to employment and economic development of people.

Administrative and Defence services, judiciary and police, all maintain order for society for function, but it is business that provides the 93-octane fuel to fire the engine of national economic growth. Indian business must do for India what business did for America in the Lincoln to Teddy Roosevelt decades (1860-1910), but, I hope, with a more human and cultural touch.

What attributes do you think have helped the TATA group survive and grow over 150 years? What lessons can other companies in India and abroad learn from this venerable institution?

Through its unique philosophy and structure, TATA group has adopted simultaneously both the discipline of industrial organizations with the creativity of ‘rainforest organizations.’ This has enabled TATA, as a group, to be highly adaptive, while TATA, in individual companies, has been disciplined and highly structured.

This pattern has evolved, and I regard it as a significant strength. It is a bit like India, whose plurality, openness and diversity are really strengths, though, to the casual observer, these appear like disadvantages.

Why do you believe that changing the culture of innovation is extremely complex?

Changing culture in organizational innovation, or any aspect, is complex. Cultural currents run deep in the dark, swirling waters around the base of the organizational iceberg, which is 9/10ths submerged. As with the iceberg, the visible 1/10ths is not where the challenge of change is palpable. In change and transformation management, leaders tend to talk to the minds and intellects of the people, whereas what is also needed is to touch the hearts and feelings of the people.

How have the various initiatives started by the Modi-led government unleashed the entrepreneurial gene in small-town India?

I don’t know if government have unleashed the natural entrepreneurial gene. Remember that the Indian has been a long-time trader in far-off lands, in several commodities, with many effective trading systems. These are exemplified by many communities such as the Chettiars of Tamilakam, the Bhatias of Kutch, and the Central Asian traders of Multan. In modern India, the natural entrepreneurial gene is seeking to be released by the government helping to create a facilitating and synergizing ecosystem. Ecosystems are hard to construct, but government is trying.

Agricultural productivity in India has for a long time been stuck at half of China’s productivity. What do you think the Modi-led government needs to do differently to address India’s agrarian crisis?

The farmer is nobody’s responsibility. Agriculture is a State subject, and, really speaking, the Centre has a limited role. Hence the Centre has to play a collaborative role with the States, not a competitive one. Politics drives the Centre and States into a competitive tussle. The Centre must play a four point role as confederated organizations have successfully done. The role of the Centre should be focussed on (i) Framework Setting (ii) Knowledge Transfer (iii) Capability Enhancement and Assessment and (iv) Technology Adoption and Demanding Farmer Progress.

Why do you say that the next fifteen years will be the best economic period that India has experienced in its long history of three millenniums?

Really, India has long-awaited its destiny of leapfrogging a new life for its people. Our Asian neighbours have demonstrated that within one or two generations, such leapfrogging is possible; admittedly, each society has done so with its own political system as China, Singapore, and Korea have done. Indians are attempting to leapfrog through a uniquely Indian cultural, social and political model, suited to Indian values and history. This brings with it tensions and obstacles, but India has overcome many. The next fifteen years look greatly positive.

What makes you believe that business management and enterprise is a potentially satisfying career for young people in the period ahead?

The answer is simple: there is no other career, which can create jobs, employment, lift standards of living of families, and train people for a future. That is why business and management can be an honest passport to India’s nirvana.