[Type the document title]

Management Lessons from Chanakya

[Type the document title]

Chnakya : Cakya (c. 370283 BCE) was a teacher to

the

first Maurya Emperor Chandragupta (c. 340293 BCE) - the first emperor in the archaeologically recorded history to rule the complete Indian Subcontinent. Chanakya is generally considered to be the architect of Chandragupta's rise to power at a young age. Traditionally, he is also identified by the names Kautilya and Vishnu Gupta, who authored the ancient Indian political treatise called Arthastra. Chanakya is considered as the pioneer of the field of economics and political science and his work is thought of as an important precursor to Classical Economics. In the Western world, he has been referred to as The Hindu Machiavelli, although Chanakya's works predate Machiavelli's by about 1,800 years. Chanakya was a teacher in Takaila, an ancient centre of learning, and was responsible for the creation of Mauryan Empire, the first of its kind on the Indian subcontinent. His works were lost near the end of the Gupta dynasty and not rediscovered until 1915 Chanakya's erudition and expertise in building Kingdoms and leadership is worth learning in these days of trials and tribulations of Corporate World. When Greeks invasion is fast pacing up towards India under the eminent leadership of Alexander, Takshasila is not in a position to stop the mighty Emperor. In fact, no other kingdom in and around Takshasila is not in a position to stop the enemy. There is no unity among Indian Rulers in those days. The feeling of 'Our Country; Our people' is not imbibed in the minds of people as well as Rulers. Chanakya is the first ancient Thinker who has created the uniting thought with the word 'Aryavartha' and roused the feelings of patriotism among the public. Chankya preached that Universities should not limit themselves to just teaching and research. Universities are part of the Society. They have to concentrate on the social problems also. If in need, Universities have to try to solve the problems. Chanakya has created a team of students, selected specially to face the mighty Greeks. Chandragupta was also among them. There are many stories spread about his strategic thinking, but one thing is true that he has discovered an uncut diamond called Chandragupta and created a name for him in the history of India. Eradication of Nanda dynasty, creating a great empire and whatever may be the task given by his Guru - Chandra Gupta obeyed and fulfilled the dreams and revenge of Chanakya. In this empirical task, Chanakya documented all his thoughts, strategies, experiences, lessons learnt in the form of the treatise titled 'Artha Sastra'. This is the story of 325 BC.

[Type the document title]

Chanakya on Leadership:

If you want to know about how a father, son, husband, sibling should be, you have to read Ramayana. If you want to know, how a Leader should be, you must read Chanakya's Artha Sastra. If Chanakya's ideal Leader becomes Prime Minister of a Country, that country will become the happiest in the World. If he becomes a Managing Director of a Company, it will gain global prominence and become one of the top companies in the world. If he becomes the head of a family, it will be the happiest. He is the leader with no bad habits and gives value to the values. Always encourages competence as well as talents. He is a war strategist. A leader has to work hard. He has to delegate work to his team, so that they will work hard like him. If a Leader himself lethargic and sleeping somewhere, what else can be done? 'If a leader is lazy, followers also will be lazy and ruling will be derailed. Targets will be missed'. Chanakya says that human resources must be managed well. A leader has to recruit people and place them in the department in which they got expertise and experience. He should not show bias towards relations and relatives while recruiting people with expertise. A leader must be highly accessible to the people and people like such Leader. A leader should not be slave to bad habits. A leader with bad habits will always become failure, though he achieves many successes. He has to face many insults. He will lose his position. We know many Corporate Leaders who are greedy have lost their companies to others and troubled thousands of families. Chanakya's teachings are relevant even today and got the potential of solving any critical problem faced by the Governments as well as Corporate World.

[Type the document title]

Relevance of Chanakya

The world of Management is full of different theories based on academic research and practical success achieved by various companies in the western world since 18 th century. With the changing context, post financial meltdown in the western part of the world, innovative approaches are being developed and practiced for sustainable and profitable growth. Basic principles remain at the core for any new practice. However, value and knowledge based management practices from the eastern part of the world are standing out. On going through the pages of historical references, we find that Arya Chanakya in his treatise on political economics. Kautilyas Arthashastra has unfolded pearls of wisdom about managing a kingdom. He was a mentor and a guide who had a very clear vision. He was a force who drove Mauryan Emperor to expand his empire to the breadth and width of pre47 India. If we change the context from King and his empire to CEO and global conglomerate of business in the flat world of today, the principles are directly applicable. Arya Chanakya was not only an Advisor to Chandragupta Maurya but he was a visionary leader responsible for developing Strategies that succeeded in terms of building a sustainable empire against the threats from foreign aggression. While developing concept of a village as the smallest unit for de-centralized control and empowerment, he has applied the basic principles of management and Inclusive Philosophy in the year 300 B.C.

When global economy is suffering due to major recession that was caused because of deviated priorities of developed economies, we find references in the political treatise of Arya Chanakya about principles of governance that have to be followed by the king and the team of his ministers that would help in sustainable growth. The principles are universal and are applicable even today in the field of management apart from politics. We find that Arya Chanakya was an apostle for management strategies. He has identified seven pillars for a stable kingdom. If we relate those seven pillars by translating them into seven elements that can strengthen the growth oriented sustainable organization, we have a treasure of management wisdom.

The applications of his principles and philosophy that we find amongst successful global companies, give us the confidence that a research based study supported with cases, can bring clarity on the subject of Indian Management.

[Type the document title]

Many attempts have been made to understand and share the basic principles elaborated in Political Economic and Chanakya Niti propounded by Arya Chanakya. However, there has not been an attempt to relate it to business world of today to bring clarity and help in application for business management.

After 2000 years, Arya Chanakya shines as a great management thinker and a strategist who practiced the principles and then wrote them in codified form. Political Economics present the essence for knowledge based successful management that is expected to prevail in 21st century.

[Type the document title]

Chanakya on Succession Planning

Recently, Mr.Ratan Tata announced in public that by next year, that is 2011, he will retire from active business. Prof. Narayan Murthy of INFOSYS has made similar announcement although he has been mentoring INFOSYS. Both the prestigious organizations are busy with exercise on Succession Planning. It is obvious that the process is not easy. It will be interesting to read the guidelines suggested by Arya Chanakya in his treatise on Political Economics Kautilyas Arthashastra. Arya Chanakya has dealt with the subject of succession planning for king. While referring to internal aspects of a stable and prosperous kingdom, Arya Chanakya has covered guidelines for selecting / developing and protecting the successor under the title Rajadharma in Chapter 17th and 18th of book 1 The eldest son/daughter of the king is a natural choice for succession provided he/she fulfills the criteria. However, there is a clear reference that succession need not be by inheritance. The elder son and rest of brothers have a natural right for succession, Arya Chanakya has advised that the activities of eldest son should be observed and closely watched right from birth. If king has only one son, he should be kept under observation all the time. If he has more than one son, all of them should be assigned tasks to prove credentials and capability.

Arya Chanakya has classified sons into three categories. The first category as intelligent, who are capable of learning the basic concepts of duties and responsibilities, logic economics etc. who can put those principles in practice. The second category consists of those who learn but cannot put learnings in practice. The third category is the one who hate the principles of governance and find themselves in difficult situations. If the king has only one son from the point of view of smooth succession, the king should convince his son for having a grandson to take care of eventuality, If a king has a daughter, king should convince her to have grandson from his daughter.

On analyzing dynasties that ruled various kingdoms on continents including Indian subcontinent, we find several examples of smooth succession that resulted in rule of those dynasties over a long period of time. Mauryan empire that was led by Chandragupta Maurya under the advice of Arya Chanakya, ruled Indian sub-continent for three generations upto King Ashoka. (Moghul emperors, Nehru dynasties, House of Tatas, Birlas, Mafatlals)

[Type the document title]

While describing behaviour of the successor, Arya Chanakya has given certain guidelines for the nominated prince or successor. Even if the king asks the prince or successor to take up the task that may not be worthy of his status, the prince should accept the task and ensure success. However, the task where life is in danger or where there is possibility of revolt from the constituency, the prince could make an exception and resist the appointment. If he is appointed on meaningful task, the prince should accept the challenges, fulfill the task with assistance from able hands and pass on the benefits to the king. In case prince is not able to get an able assistant, he should try and show results by various means to prove his capability.

Arya Chanakya has also discussed at length the issue of announcement of a successor that is critical in Succession Planning for smooth transition. There are specific guidelines about the announcement where the king is sick. He mentions when the news should be made public and how the news about sickness should be conveyed amongst the members. While discussing Succession Planning, Arya Chanakya has given a warning that some of the disgruntle of elements of kingdom in the empire could rise and revolt to take advantage of opportunity. Kautilya says that in order to have smooth transition, the Ministers should choose a Prince who is not just senior but the one who is capable of handling the responsibility of stability and growth in the long-term interest of the kingdom.

[Type the document title]

Chanakyas vis-a-vis Jim Collins Philosophies in Modern day Management:

Separated by time and culture, Chanakya and Jim Collins espouse astonishingly similar management philosophies. Chanakya helped build a great empire, and Collins helps build great organizations, but their principles know no boundaries of time, geography, or discipline. Modern-day management begins with a leadership team committed to the organizations core values, purpose, mission, and vision. The same was true 2,400 years ago when Chanakya proceeded to help build an empire. He put vision, mission, and motivation ahead of everything else. He then identified the need to focus on leadership requirements, organizational strategies, and human dimensions. According to Chanakya, the essence of leadership lies in justice and ethics. According to Collins, it lies in Level 5 leadership where leaders channel their energies away from their own egos and focus on the good of their organizations. Both exhort leaders to concern themselves less with power, rewards, and recognition and more on serving the needs of the people they lead. Chanakya placed great emphasis on human resource development. He identified the basic non-technical qualities required for every effective executive: character, ability to concentrate, ability to think, ability to communicate, and ability to observe. He insisted that the king surround himself with people who possess these skills. Similarly, Collins emphasizes having the right people on the bus as the top priority for any executive. He summarizes the non-technical qualities required for leadership as attitude, knowledge, and skill.

[Type the document title]

The similarities between Chanakya and Collins continue in four key areasLeadership

Chanakya saw self-discipline, integrity, courage, decisiveness, sensitivity towards others, humility, and selflessness in great leaders. He said that great leaders are sensitive to the needs, feelings, and motivation of the people they lead. Today, we call this servant leadership. Intense will and humility are the most important characteristics of leaders in the 21st century, writes Collins; [Level 5 leaders] strive to build enduring greatness through a paradoxical blend of personal humility and professional will. He says that until todays leaders make the transition to develop intense will and humility, their ethic deficiencies will negatively affect the performance and sustainability of their organizations. Planning Chanakya stressed the need for planning, saying that a failure to plan is a plan to fail. He also said that people should be firm about the goal but flexible with the process of achieving it. Likewise, Collins claims organizations are in desperate need of greater discipline: disciplined planning, disciplined people, disciplined governance, and disciplined allocation of resources. Preserve the core, but stimulate progress, he writes. Knowledge Chanakya taught that knowledge is important and cumulative, and that small differences in ability can lead to enormous differences in results. Therefore, he encouraged people to focus on acquiring knowledge in their pursuit of superior results. Similarly, Collins claims the barrier to growth is not ignorance, but the illusion of knowledge. Level 5 leaders have the humility to admit what they dont know, and they do something about it. Recognizing the need for and diligently pursuing knowledge is supreme. Results & Success Chanakya says that success is no accident; it results from well thought actions aligned with focused vision. To sustain success, he says, organizations must implement a reliable system to collect real feedback and put corrective actions into place. Likewise, Collins writes that success comes through focus on the Hedgehog Concept, the intersection of each organizations unique passion, best-in-the-world ability, and economic engine. Organizations that know their Hedgehog and operate within it are far more successful than those that dont. Two great thought leaders, separated by 2,400 years and 10,000 miles, teach virtually the same management methodologies, even though their platforms are also quite different. What does this mean? It means these principles are timeless and universal. They apply to all organizations, regardless of industry, geographic location, or any other distinction.

[Type the document title]

References:
http://indian-management.blogspot.in/search?q=chanakya http://www.pandeassociates.com/pande/news/mantra-113.pdf http://www.freewebs.com/balakrishnanmuniapan/Microsoft%20PowerPoint%20%20Kautilya%20&%20Hermeuni.pdf

10