Abstract
Abstract
In this article, I draw on the wisdom from Kautilya’s Arthashastra to understand the volatile, uncertain, complex and ambiguous context. I focus on the sutras pertaining to controllable and uncontrollable situations, the four principles of execution, the Chatumandal framework of making the uncertain visible, and finally the 11 questions that capture the wisdom on success. Drawing on my experience in consulting for organisations, I have attempted to provide a formula that can help HR leaders to navigate their roles with this background.
Radhika Gupta, CEO, Edelweiss Asset Management Limited, in her message to investors and advisors recently wrote the following:
Timeless advice is focused on a vision and executing it. The Maurya Empire occupies a place of pride in India’s history, and while it was formed under the leadership of Chandragupta Maurya, his advisor (Guru) Chanakya is widely credited with its establishment. Not only did Chanakya groom the emperor into a good leader and commander, but he was the first to see the vision of a unified India and not just a large India. He wanted Chandragupta to not just be remembered as a conqueror and in fact even after his death, he documented many of his principles and vision in the book Arthashastra, which India’s former NSA advisor, Shiv Shankar Menon states, is relevant even today. In the matters of money too, good advisors will have a vision for their investors financial journey—one that will start from their early 20s ideally when they just start earning, grow into the 30s and 40s as both earnings and responsibilities grow, and then sunset into retirement. A good advisor will map out a financial journey and execute it completely and relentlessly, going the extra mile beyond the portfolio when required including even resolving a family dispute. I’ll end by saying that we at Edelweiss AMC truly do believe that #AdviceZarooriHai—ten years ago, it is today, and it will be ten years from now. Behind many success stories of great individuals—whether in film, cricket, business, and in fact behind the creation of India, are the stories of great advisors and great advice.
Radhika Gupta’s words are as relevant to HR today as they are to advisory services. In this article, I plan to draw up on the wisdom of Kautilya, also known as Chanakya, to examine the role of HR professionals in a world characterised by volatile, uncertain, complex and ambiguous (VUCA). Sometimes, I find that Kautilya is (mis)understood as a Machiavellian character—someone who is cunning, and for whom the end justified seemingly ruthless means. He is estimated to have lived from 350 bc to 283 bc and is credited with having written the most complete leadership, strategy and governance treatise through his works Chanakya Neeti, Arthashastra and Neetishastra. The Arthashastra is about the science of prosperity covering diverse topics such as leadership, statecraft, foreign policy, strategy and warfare, law, economics, etc. Chanakya was a kingmaker, advisor and prime minister to Emperor Chandragupta. Prior to this, he was a professor at the University of Takshashila (located in the present day Pakistan). He was a polymath as his expertise covered a vast range of sciences and arts. Kautilya’s wisdom has outlasted his context. Here are some sutras from the Arthashastra that I feel will provide insight for management in a VUCA world.
Acts of human agency are good policy and bad policy; of divine agency—good fortune and misfortune. For, it is acts of human and divine agency that make the world go. That caused by an unseen agency is the divine act … (and is incalculable). (6.2.6–8)
In the above sutra, Kautilya reminds us that events that happen in our life may not always be to our liking. They are uncertain and even complex, but human (and thus, professional) action is essential at all times. That said, we must contend with the fact that the outcome of our actions depends on:
To Kautilya, policy can be thought about and planned for. Policy refers to those guideposts which a leader creates, applicable in the long run. Policies will guide actions. They provide a framework for decision-making for any individual involved. Here divine can be thought of as ‘acts of nature’ or ‘completely unforeseen unconnected incidents’. We can exercise no direct control here though sometimes we may minimise damage through readiness. Some examples are earthquakes, terrorist attacks or even sudden market meltdowns.
In recent years, the two terms risk and uncertainty have become a part of organisational vocabulary. A simple definition of risk is that you can predict the possibility of a future outcome, whereas in uncertainty you cannot predict the possibility of future outcomes. We could argue that risk refers to the controllables, and therefore human agency is critical in such contexts. The qualities of being proactive and anticipation are key to managing controllables.
Kautilya on Quality of Execution
Building on the previous sutra, in case of controllables, which by definition fall within an individual’s scope of action, what must one do?
And they should bring about the commencement of what’s not done, the carrying out of what’s commenced, the improvement of what is carried out, and the excellence of execution of orders,
In case of works. (1.15.52)
Applying these ideas in the context of organisations, perhaps we may first encounter a large number of promising initiatives, which have been initiated but not finished. HR is a witness to many of these, even a champion for several of them. Worse still, many potentially great ideas remained at the drawing table. This sutra captures the essence of ‘execution excellence’. In recent years, there has been a great emphasis in management literature on execution, and Kautilya too has advice on execution, which easily applies here.
In my experience, the impact of procrastination at work can lead to higher stress, greater errors being committed due to last minute pressure, poor reviews, delay in project schedules and extreme dysfunctional issues such as negative mental health and social relationships. It is important to be aware of the reasons for the tendency to procrastinate and give oneself a higher purpose that motivates one to be productive. Reframing perspectives and focusing on goals are critical to overcome procrastination. An example often seen is organisations that set goals annually and form councils, or governance to institutionalise activities that need mobilisation of resources. The planning is done with a lot of sound and fury, but over time, the initiative loses steam or direction and one sets new goals the next year. The cycle of failure continues. To state another oft-observed example, surveys and dipsticks have been the trends for a while in organisations to gauge employee engagement but how effectively do we communicate the results or measure the progress through transparent channels of communication? For an employee, the loop is not closed if he/she does not get feedback on the progress made after the voice or opinion was solicited. The engagement intervention ends up creating further disengagement and the survey ends up being a transactional mundane chore to be completed every year. The cycle of failure continues. Therefore, carrying out what we have commenced and bringing it to a closure is a key attribute of effective execution.
Management literature has tended to focus extensively on the link between strategy and results. Kautilya is considered the mastermind who brought about the retreat of the mighty Greeks from India—a feat considered impossible to achieve, without impeccable execution. The downfall of organisations becomes imminent when they embark on action very late. One may realise that a person with the ability to start well is appreciated, the one who finishes what is initiated is much respected, the one who combines completion with improvement over last time is honoured, but the person who elevates standards to a new level of excellence each time is celebrated.
Making the Uncertain Visible
What can businesses do to handle volatility and ambiguity? Does Kautilya offer any counsel for this? Let us consider:
There are twelve constituents who are kings, sixty material constituents, a total of seventy-two in all. Each of these has its own peculiar excellences. (6.2.28–29)
This sutra appears in book six which is titled as ‘The Circle of the Kings as the Basis’. This forms the bible of strategy, for both peacetime and wartime. A very broad overview of Kaultilyan thought in this sutra is provided here for the reader to appreciate the depth of information and insights that are available in the works of the author. The strategies of the master strategist Kautilya are encapsulated in nearly 200 sutras on foreign policy and war strategies.
Kautilya’s strategy took into consideration not just 1 or even a few other kings but a total of 12 kings (including himself) with the constituents of their kingdoms which included 6 other elements besides king—the ministerial cabinet, citizens, forts, treasury, army and allies. Each of these elements mattered and needed study. Thus, 12 kings, multiplied by 6 elements each meant 72 elements for consideration of strategy. Each of these 72 were mapped for the formulation of strategy—in preparation for war, or other kinds of circumstances, of which there are 5.
Why 12 kings, one may ask? Is it not that one too many and what would be its relevance to business? Actually, Kautilya provides insights into the questions that have to be answered by managers today based on the above mapping:
Who are the king’s adversaries? (Who are our direct competitors in business today?) Who are the king’s allies? (Who are the partnering organisations in our business today?) Who are the middle kings? (Who are those players who are not a direct threat to our business presently, but have a significant presence in our broad domain?) Who are the neutral kings? (Which are those businesses which may emerge as competition at a future point in time?) Who are the adversaries’ allies? (Who are the competitor’s allies?) Who are the allies’ allies? (Which organisations do our allies partner with?) Who do the middle or neutral kings like to ally with? (How may I convert a future challenger into an ally?) How strong is the adversary on the basis of the six elements and the king himself? (How does the competition stack up as compared to my organisation?) Likewise for the allies, neutral king, allies’ allies and adversaries’ allies—how strong are they? (How do I fare as opposed to all other players, element to element?) What are the positions of these kings with respect to circumstance, geography and natural strengths? (How do the other businesses compare in terms of life cycle maturity, locational spread and other aspects) Which aspects are within my control and which are not? (How may I strategise against most or all visualised scenarios?)
The questions in parenthesis represent the modern adaptations of the questions raised by Kautilya. These considerations pertain to dynamically monitoring our entire competitive landscape/ecosystem, including those who are neutral or those who may emerge in the future. This mapping is called the Chatumandal. Four sets of concentric circles consisting of 3 kings each totalling to 12.
Recent literature on competencies need in the VUCA context, provided by the Institute for the Future in 2011, has four competencies which appear to be different facets of this sutra, namely sense-making, trans-disciplinarity, novel and adaptive thinking, and design mindset. What is becoming evident is the need for a more holistic, systemic and integrated thinking which can capture the complexity of the environment.
Kautilya on Success
One of the key concept that Kautilya introduces in the chapter mentioned earlier is Vijigishu. Vijigishu is one ‘with a growth mindset, at all times’ who is continually expanding himself/herself as a person, enhancing benefits to the stakeholders, and growing the organisation. Vijigishu is a multiplier, a conqueror of minds and hearts.
According to Kautilya, the Vijigishu has a dual purpose—Shakti & Siddhi. Shakti is possession of strength, while Siddhi is the obtaining of happiness which is real success.
Shakti is threefold: Utsah shakti—that of energy Mantrashakti—that of counsel or knowledge or strategy Prabhushakti—that of clout or dominance. (6.2.30 – 33)
Kautilya considers energy as a quintessential component of strength. Further, he adds
Shakti and Siddhi determine which king is superior, equal or inferior. (6.3.35)
The role of any king is continuous endeavour in enhancing shakti and thus siddhi. The ways of doing this depend on the other kings with whom we are engaging in the war strategy. In order to have shakti and siddhi, a king has to continuously monitor the entire ecosystem, as mentioned in the earlier section.
Strategy, as we know, is never stand-alone. It is always in relation to the adversary or adversaries. This can be done through close understanding of the ecosystem and mapping the same, says Kautilya. Translating this to the current context, the ecosystems of different industry segments are unique and often dynamic, with no precedent. Therein lies the opportunity to shape the market. Kautilya states in the same book that the ‘happiness’ of sustained business success rests on the following:
Siddhi = Vyaayam + Focus on Controllables + Chatumandal + Building Shakti
If simplified, this becomes
Success = Meaningful Activity + Focus on Controllables + Mapping of Ecosystem + Building Capacity.
Or when expanded
Success with Happiness = Meaningful Activity (Through Chatushtayam & Dincharya) + Focus on Controllables (Panchaang) + Mapping of Ecosystem (Chatumandal) + Building Capacity (Saptaang)
I attempt to provide a brief explanation of each of the components:
Vyaayaam refers to engagement in meaningful activity. Vyaayaam is that effort which brings about accomplishment of objectives. Vyaayaam is undertaken in the quest of getting sham. Sham is the sense of (temporary) enjoyment of that accomplishment. Sham is transient. Vyaayaam is permanent and ongoing. The framework for Vyaayaam is
Chatushtayam: Cycle of leadership—the four stages of creation, consolidation, expansion and renewal or giving back; Dincharya is a well-designed daily schedule to act and review through self-reflection. Panchaang is a framework for flawless execution—setting objectives, planning resources, determining suitable place and time for action, foreseeing impediments and solutions, accomplishment of stated objectives through action. Chatumandal is a framework to strategically map the environment in a way that takes into consideration present, near future and distant future, as discussed earlier. Saptaang, as mentioned earlier, is the seven-division lens of operations, that is, the leader, manager, customer, infrastructure, treasury, workforce and allies. Imagine the vast range of imperatives for the business to succeed.
Lessons
I would like to illustrate this entire process with an example. An organisation which had a set of six stand-alone restaurants serving South Asian cuisine just two years ago has now transformed into a ‘hospitality group’ comprising of seven business verticals. This, despite the fact that just six months into the intended transformation, there was a significant dip in revenues, shut down outlets and danger to its brand.
What caused this metamorphosis? The consistent usage of the aforementioned five steps—1(a), 1(b), 2, 3 and 4. On applying 1(a), they realised that they had moved into the expansion mode for high street restaurants, before having consolidated. Once they noticed that this was causing challenges, which included challenges to their basic values, they pulled back the expansion. Instead they went back to the drawing board to re-orient themselves. They examined and challenged their ways of working. One of the simplest yet most important actions was to plan their own days better with Dincharya. A well-designed daily schedule was executed, starting with the MD as well as the CEO. A lot of resistance and even pushback was visible, but the leaders persisted. The Dincharya was then cascaded down to the next line, the heads of departments. Gradually, the discipline seeped into the entire system.
Next came the Panchaang, with which execution became much more impactful, since all managers were now disciplined in their management of time. Objectives were stated more clearly. Stated objectives became visibly more achievable with time. Impediments were surmounted and future barriers were envisioned. But the biggest change emerged from the next two components. Chatumandal helped this organisation look around the corner and identify the fact that imminent threat was not from lack of expansion of restaurants but from other emerging concepts in the food industry, concepts they could not have envisioned without systematically thinking about competition. This realisation helped them to create new verticals, which were
Farm hospitality Cloud kitchens (multi cuisine home delivery and outdoor catering experience) Consulting other restaurants for best practices Training academy for other restaurants
Further, a totally different vertical appeared on the scene, from their own experiences—a suite of wellness offerings for whoever needs it.
In addition, there was a renewed focus on giving back to society, green initiatives and agriculture and nutrition.
Last but not the least, the Saptang view for each of these new verticals necessitated the identification of a swami (leader) for each one who would own and grow that vertical. They were selected, coached, supported, challenged and encouraged.
All of these efforts resulted in the transformation and growth of the organisation. For many of us who have a formal training in management, this resembles the organisational change management framework. What is important to understand, however, is the extraordinary emphasis the Kautilyan wisdom places on understanding of the ecosystem and environment more holistically.
Relevance of Kautilya to the HR Professional
As is now clear, Kaultiyan concepts provide direction to business in VUCA times, not just to survive but also to thrive. HR has to be the enabler for organisations, so that they can begin with self-knowledge. First, we need a sound knowledge of oneself, as humans, and then of our own organisation. Next, we shall have to map the ecosystem and acknowledge that the ecosystem is real, dynamic and ever-changing and in VUCA.
HR leaders need to be Vijigishu. In the Kautilyan wisdom, becoming a self-conquered leader (swami) is most essential. Becoming a Vijigishu is the next level. Only the swami with excellent organisational strengths can aim to be Vijigishu, says Kautilya. The journey is from within, to without, to the world. The conquest is never-ending.
The Vijigishu knows that Vyaayam is permanent. Vyaayam or meaningful activity can lead to three possibilities:
Decline Equilibrium Advancement
The goal of Vijigishu is always vruddhi or advancement. In the quest of advancement, the actions for HR leaders in a VUCA world are as follows:
To enable development of a comprehensive people strategy. To create organisational capability through understanding controllables. To be part of the discussions on strategy, especially to help create capacity for medium and long term. To map talent across the ecosystem and create talent roadmap based on the same. HR has to say what it can do and do whatever it says—execute meticulously and measure ceaselessly. HR has to help institutionalise the above knowledge for present needs as well as the future, by becoming an internal consultant to businesses as well as through training. HR can well become the revenue earner through knowledge generation and expert services. To incessantly bring in innovation, especially in employee wellness and productivity. To work towards becoming a champion of organisational advancement and success. To create good for all organisational stakeholders.
Conclusion
In a world characterised by VUCA, learning has to happen from every source. Traditional wisdom that exists in books needs to be made more accessible to professionals for them to build their personal effectiveness. Leadership development experts have long recognised that growth and development occurs in the realm of experiences that people have exposure to. One of the experiences for individuals is the wisdom from traditional texts that are local. The familiarity of the texts in a cultural context allows for assimilation of insights more deeply, and as HR professionals we need to do more of this in our learning and development efforts.
Declaration of Conflicting Interests
The author declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.
Funding
The author received no financial support for the research, authorship and/or publication of this article.