Time for a book report…actually, two….. by someone I admire a great deal in the Human Capital space: Peter Cappelli.  In the first of two posts this week, my thoughts on The India Way, written by Peter along with Wharton colleagues Harbir Singh, Jitendra Singh and Michael Useem. Published earlier this year by Harvard Business Press, it’s a great read on the ways in which leadership happens in Indian companies and the insights that we can glean from a different approach.

Despite infrastructure challenges, strict rules and guidelines to be maneuvered and the challenges of multiple cultures and religions, India has become a force to be reckoned with in recent decades; Cappelli and his colleagues capture this unique approach to doing business.   Based on their research and their interviews with more than one hundred executives, The India Way is a “must read” for leadership development professionals in particular.

While no country, culture, company or leadership style can be distilled into a single recipe, there are elements of the approach to leadership among Indian executives that can, generally, be thought of in these ways:

• These leaders truly believe that holistically engaged workers deliver creative value propositions, increased improvisation and adaptability/resiliency;
  • One of India’s largest information technology firms, HCL, has as its motto, “Employee First, Customer Second,” believing that valued and engaged workers deliver excellent work, increase customer satisfaction and drive higher profits
  • It’s not just about driving business results; it’s about serving a larger mission and purpose through the activities of the company;
    • Indian leaders believe that they must create at least 10 million jobs each year to absorb the new entrants into the workforce and they believe that they much act as role models for their workers
    • There is a stronger emphasis on setting strategy, maintaining company culture and fulfilling mission statements when compared to Western company emphasis on shareholder satisfaction;
    • There is a dedication of time and resources to human capital processes and are more likely to include human capital professionals in corporate strategy conversations; and
    • They understand the principle of jugaad, how to manage through a restrictions in resources and rules.

I found the discussion of the role of those in Human Capital particularly fascinating.   While outsourcing does occur, HR personnel and costs are not viewed in the same light as in the West.   In India, the role of HR is to:

• Manage and develop talent, predominantly from within;
• Shape employee attitudes and worker commitment;
• Manage organizational culture in partnership with executives; and
• Internationalization…preparing Indian companies to compete and win in a global marketplace.

It’s a great read…I recommend it highly.   Great leadership lessons…no matter where you are in the world.

To learn more, visit http://www.wharton.upenn.edu/faculty/cappelli.cfm

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