Transforming Businesses to Perform in the 21st Century
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Transcript of Transforming Businesses to Perform in the 21st Century
Transforming Businesses To Perform in the
21st Century
Sandeep Gupta, FCA, PGD(Theology)
23rd February, 2013
International Conference
‘LEADERSHIP & MANAGEMENT THROUGH SPIRITUAL WISDOM’
School of Management Sciences, Varanasi
The World Today
“If there is no peace in the world today it is
not because there is lack of material wealth.
It is because there is lack of poise and
balanced judgment in distinguishing right
from wrong” [His Holiness Prof. MB Lal Sahab of Radhasoami Faith – Religion of Saints]
2
The Shifting Paradigm
‟Paradigm’ is a coherent, internally consistent approach of making sense of the
universe and coping with life: essentially, how one sees, thinks, and behaves
(Kilmann, 2001)
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With every unfolding of new knowledge ‘a part of metaphysics shifts to physics’
20th Century Paradigm
That the individual is independent
of the universe and the society
That man can control nature and
define everything through physical
sciences
21st Century Paradigm
Consciousness is primary, mind
and spirit have a reality and man is
the creator of his own reality
“Oneness in creation” - Everything
affects – and is affected – by
everything else
Business
Business is an integral part of human life and functions like a living system that
adapts itself quickly to its external environment i.e. societal values
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Challenge Before the 20th Century Businesses
Replace their one-dimensional economic approach of doing business
Strike a balance between the economic objective and the social objective of the
business
Treat employees like humans and make them active participants
Focus on sustainability by achieving ecological balance, rather than trying to gain
domination over nature
5
“The role of business in society is on the Boardroom agenda. Either, the CEO and
the Board manage the role their business plays, or others will manage it for them.
At stake is corporate reputation, innovation, competitiveness and growth”.
[FitzGerald and Cormack 2006]
Typical 20th Century „Unconscious Business Model‟
1. Consciousness excluded from the design of operational and
management systems (Loss of knowledge & social equity)
2. Employees passive jobholders supposed to follow official
procedures (Loss of self awareness)
3. White space (gaps) between departments purposely ignored
(Loss of mutuality)
4. Unconscious administration of the organization (Lack of
transparency)
5. External control of passive jobholders (Loss of
interconnectivity)
6. Enforced segregation of passive jobholders (Loss of
communication
7. Slow to respond to environment eventual self-destruction (Lack
of flexibility)
6
The classic traps
Do Not Trust, Refuse to See, Pick Your Favorites, Play the Game, Decide in a
Vacuum, Do Not Listen, Avoid Problems, Blame Others, Punish Others, Do Not
Communicate – all attributes of lower nature of man
Typical 21st Century „Conscious Business Model‟
1. Inclusion of consciousness leading to self-design
systems
2. Employees actively involved in self-designing processes
3. Cross boundary processes as explicitly addressed and
infused with information - no white space
4. Conscious self-management of a flexibility designed
organization
5. The internal commitment of active participants
6. Empowered relations among active participants
7. Quick to respond to environment – increased
sustainability
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Demands of 21st century
Inclusion of consciousness, self-awareness, interconnectivity, flexibility,
communication, transparency, mutuality, information & knowledge and societal
equity
The Difference Between „UBM‟ & „CBM‟
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20th Century
Unconscious
Business
Model (UBM)
21st Century
Conscious
Business
Model (CBM)
Fundamental Exclusion of
Consciousness
Inclusion of
Consciousness
Other Factors Lack of:
• Self-awareness
• Interconnectivity
• Flexibility
• Communication
• Transparency
• Mutuality
• Knowledge
• Societal equity
Integral part:
• Self-awareness
• Interconnectivity
• Flexibility
• Communication
• Transparency
• Mutuality
• Knowledge
• Societal equity
Consciousness
in action
The Transformation Challenge
Transformation is a fundamental shift from one paradigm to another, thus
the strategy needs to necessarily affect all members of an organization in such a
manner that they see, think, and behave in unison; otherwise, the change
initiative would be rather superficial and short lived.
Transformational process success drivers:
1. Ability to change the thinking behind the thinking
2. Enable appreciating the shortcomings of the outgoing paradigm and how the
new paradigm will improve life
3. Providing a comprehensive approach that would enable the transformed
organizations and its members to survive and thrive as a collective
enterprise over an extended period of time.
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The transformational challenge being faced by businesses today is neither
economic or managerial, it is philosophical in nature – hence a philosophical
solution is required that be translated to real life situations
Indian Wisdom
‘The Indian philosophy’ viz. the oldest living tradition with a definite ethical
doctrine derived from its metaphysics, gives it the capacity to improve life - the
core test of any philosophical system (Radhakrishnan, 1914)
It has all the ingredients to pass the three tests that makes any transformational
process a success
It‟s scientific expositions about
1. „oneness in creation‟
2. „spiritual consciousness‟ and its role in the universe, and
3. the art of righteous (conscious) living
creates a comprehensive package for the global business community to think,
realize, apply and practice.
10
Do‟s & Don‟ts of „Conscious Living‟ Dr. Radhakrishnan, 1914
Respect human dignity and recognize man as man
Nothing human is alien
Do not isolate yourself from the life of the whole
Life is a trust for humanity, satisfaction of personal desires is secondary
Do your best to make your small corner beautiful, efficient and loving
Lead a life governed by the principle of ‘Dharma’ (righteousness) – i.e. not a life of
zero desires but a life of regulated desires
Reign your „Lust (Kama), anger (Krodha), greed (Lobh), attachment (Moha), pride
(Mada or Ahankar) and jealousy (Matsarya) „the six human weaknesses
otherwise the divine in you will be pushed back by the beast in you
Contemplation, control over senses, conscious decision making (think before you
act), selfless action are some of the action points for leading a rational life
13
Since business is integral part of human life, a social arrangement to create and
share wealth, the do‟s and don‟ts of moral and rational living are equally
applicable to businesses situations
M E M B E R S
The Transformational Model
14
Culture Officer
Contribution in resolution of
social, economic & environmental
challenges
Enhanced societal acceptance and
support
Enhanced brand value and prestige
Increased sustainability
quotient
Mission State in terms of commerce and finance
Vision Define in terms of Societal Wealth creation
Values: The 5 universal virtues Non-violence, Truthfulness, Not Stealing, Restraint
& Non-Possessiveness
Board of Directors To include spiritualists, economists & scientists
Strategy Driven by Co-creation & Co-evolution Philosophy
Operating & Management Environment (Change / include)
Management style • Participatory (brain storming sessions) Decision making paradigm • Does it confirm to organization’s values? • Will it add to the sustainability quotient? • Will it generate profits for the organization? Target Setting • A mix of financial & participation in CSR Incentives • Calculated on a mix of financial, community
participation & adherence to organizational values
Company becomes
attractive for investors
INCREASE IN SUSTAINABILITY
Revised Environment
Action Points
Helping leadership to become mindful
– Induct a spiritualist in the Board to help the leadership
Environment creation
– Adopt co-development & co-evolution strategy
– Restate „vision‟ in terms of social wealth creation & mission in „commercial terms‟
– Revise target fixation and incentive policies by including elements of CSR
– Implement a decision making paradigm across the responsibility levels
Help members to adjust to the new environment
– Appoint a „culture officer‟ to educate and handhold members
15
Members
resist
Comply out of
self interest Habit formed
Experiences
betterment of
personal &
professional
life Members
start
promoting
mindfulness
ORANIZATION CONSCIOUSNESS
STARTS EVOLVING
Conclusion
When the businesses will transform and become mindful
they will not only enhance their sustainability in the 21st
century but will also influence society to practice
mindfulness, as to follow the successful is a natural
instinct of man, and today every 2nd person idolizes and
wants to be a Bill Gates, Laxmi Mittal, Ratan Tata or
Steve Jobs
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