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]

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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

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“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)

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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.

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Oneness in Creation: Macrocosm (Completely Closed System)

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Oneness in Creation: Man as Microcosm

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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

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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

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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

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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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Thank You

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