New Delhi, India -- (SBWire) -- 12/12/2011 --Arindam Chaudhuri’s latest book Cult takes the ideas in his previous ones a step further. Primarily meant for CEOs, the management guru tells Rahul Devrani that it isn’t theoretical but practical, research-based and questions a-priori notions
How different is this book from your previous ones?
We have picked up 36 key issues which people have to typically work around to run an organisation. These issues or principles are followed almost everywhere but we have redefined them entirely. It isn’t one of those goody-goody books. It isn’t the one which would talk about all the nice things because you want to sell more.
Besides, this hasn’t been written by a teacher who feels anything that theoretically sounds good on paper is true. For example, they will try to prove that a democratic style of thinking is the best an organisation can work. We, however, have proven that an authoritative style of working is something that has led to maximum success in organisations worldwide.
Steve Jobs is one of the biggest examples. Ford’s Allen Mulally is another. These are people who have believed in something and carried them out on their own. Although when we say Steve Jobs was authoritative, it doesn’t mean he was like that with everybody. There were mature people in his organisation whom he gave all the liberty. He knew these are people who will work on their own. We have shown how mergers and acquisitions don’t lead to additional value. We have shown how core competency is a risky proposition. You’ve got to diversify. A lot of companies have got carried away with core competency philosophy and run into trouble. Similarly, we have taken issues around CSR. The Government says corporates should indulge in CSR.
We say the Government should never try to interfere in corporate working and tell them what to do.
Corporates’ job is to make profits. By making profits, they generate employment and increase shareholders’ value. By doing that the shareholders who become rich tomorrow generate more employment. My biggest contribution, as Warren Buffet says, is generating employment.
Is the book one of the sorts that give ‘guidelines’?
No. We haven’t made statements. We have only included research-driven material. When one picks up the book, he realises the words written are extremely logical. I avoided autobiographical examples but the principles are autobiographical. CEOs would pick it up and think, ‘Yes! This is right. But if this is right then why was I trying to do something else which sounded good but wasn’t worth it?’
Is this book only for the CEOs or can others pick it up too?
If you pick it up and use a little brain, you’ll be able to understand. It doesn’t require too much of intellect. I have always believed management to be something very logical. Anyone can pick up the book and read. But how relevant will it be for you? Primarily, it’s about the decisions typically taken by CEOs. But it’s definitely a fabulous addition to knowledge base because nobody works in an organisation to remain at a junior or middle level. Everybody aims to one day reach the top. And reaching there requires a certain amount of knowledge and experience. While the latter takes time, the former can be acquired through this book. Besides for a layman, it’s a great tool to get inspired. Count Your Chickens Before They Hatch was for everybody as it applied at an individual level. My second management book, Thorns To Competition, was for middle-level people in marketing and advertising. This one is for the CEO level. It’s kind of a step-by-step package.
How relevant is this book for CEOs in India?
For every five global examples in the book, there is one Indian. I think that’s the truth for business too. For every five big companies, we talk about one big Indian company. There are things mentioned that aren’t used by Indians but are relevant nonetheless. In India, the share prices don’t reflect the company’s efficiency, they reflect the manipulative ability and that’s the problem. A day will soon come when we will require transparency. So the things mentioned in the book might not sound relevant now but we’ll need them later.
The book’s co-author A Sandeep has been your long-time friend. What does he bring to it?
When he took over the editorship of our magazines, I told him that we’ll write a book together one day. I’d say over the last four or five years, every discussion we’ve had together, Sandeep went home and compiled it. Every thought process that we evolved, he found research to back it. We then got it all together. It’s been a fabulous joint effort. We were batchmates at IIPM ’89-92 after which he went on IIM. Without his insight, this book would never have seen the light of the day. He is a master in business strategy.
Why do you plan to launch the book in London and not Delhi?
We are doing it because it is very global in context and has many international examples. Everything we have written in it is from the perspective of how do we maximise the wealth of the shareholder. In India, the concept of the shareholder’s wealth maximisation is the last thing in the minds of CEOs or business heads. In America, when any decision is taken by a CEO, the first perspective in mind is whether it will maximise the shareholder’s wealth? Besides, Silicon Valley venture capitalist, bestselling author and Apple Fellow Guy Kawasaki will release the book. A book called the Indian Power Brands edition is also being launched.
It’s a collection of Indian brands which have become the biggest names over the years.
Arindam Chaudhuri Aims to Generate More Employment in the Country