I.

POWER IN THE CORPORATE WORLD

Corporate world’s search for supremacy over competitors and players of other industries can be
summed in one phrase – the search for ‘power’. All CEOs refer to this struggle for power as a warfare
strategy. No wonder the book ‘The Art of War’ by Sun Tzu is often quoted by various CEOs in their
strategy plan.

Kautilya’s Arthashastra is India’s contribution on the subject of warfare strategy. Out of 15 books in
Arthashastra, six books are dedicated to the art of warfare. A deep study of these chapters will give us
an insight to the factors that contribute to making of a powerful organisation.

Kautilya, in the Arthashastra gives us various factors that make up true power.

1. INTELLECTUAL POWER

The power of knowledge. The corporate world is today led by knowledge workers. It’s an intangible
asset of any organisation. Management Gurus across the globe are talking about the knowledge
revolution that is happening in this century. The greatest commodity of the future is going to be
‘knowledge’. No wonder the richest man in the world Bill Gates, is part of the IT industry which is
nothing but knowledge oriented. Even the highest paid executives are evaluated on the basis of the
knowledge they have over the years of working experience.

2. MAN POWER

Men are assets of an organisation. They are of two types – internal and external. Internal manpower
compromises employees of the organisation, the board of directors and the share holders. External
manpower includes the customers and suppliers. It is because of them that we exist. We have to focus
on satisfying our customers. As Peter Drucker, the father of management points out, “The aim of
marketing is to know and understand our customers so well that the product or service fits them and
sells itself”.

3. FINANCIAL POWER

Financial success is the basis on which an organisation can progress. A sound balance sheet is the
parameter on which employees, shareholders and stake holders continue their support to the
organisation. As Jack Welch, the former Chairman of GE points out “Nothing succeeds like success”. To
be financially successful is very essential. It gives a lot of courage to the organisation, not only to share
its profit but also to reinvest in various productive areas like research and development, venturing into
new projects and ideas as well as contributing to many social causes.

4. POWER OF ENTHUSIASM AND MORALE

This is the most important factor of all. A leader who is charged with enthusiasm and high level of
morale can create the reaming three. Research has proved that the most productive organisations are
the ones that have a very high energy level in them. The drive to ‘get more’ is the true sign of progress.
Venturing into new markets, scaling high targets, working towards deadlines finds it roots in
enthusiasm. All great organizations have inspired leaders.
 II. POWER BRINGS RESPONSIBILITIES
All of us can recollect the ideas and ambitions we used to portray on being asked to write an essay, “If I
were the prime minister of India” in our school days. We all used to imagine the utopian society if we
were given an opportunity to run it. Smartly carving our solutions to socio-economic, political and
security related problems, we could write endlessly provided that if we had all the power of being the
leader.

But is it easy to come in and remain in the power? Is it secured and safe to remain at the top?

Chanakya says about what kind of dangers a king has to face,

“For the king, there is (danger of) revolt in the interior or in the outer regions” (8.2.2)

The greatest danger for a king is of the revolt. This is what he has to be aware of and protect himself
from. What does revolt mean to a leader in business? It means dissatisfaction of the employees,
shareholders and, stakeholders who are the integral parts of the organisation. There are also external
threats from suppliers, customers and clients.

Even politicians are aware that if they do not rule properly and people are dissatisfied then the voters
can over throw them.

How to keep everybody happy when you are in command of an organisation?

1. UNDERSTAND THE NEEDS OF MARKET

As a leader, it is important to understand the needs of the people in the organisation as well as of the
market and the industry. As long as you are fulfilling the needs of them, they will be loyal to you. But
while doing the need’s analysis one should also be able to differentiate between need and greed.

2. REMEMBER OLD CLIENTS WHILE MAKING NEW ONES

Business is not a one-time deal but a collection of deals over a period of time which makes it a
successful business. Hence, understanding the requirements of people around is a continuous process.
You should be always on the move. Keep meeting your old clients regularly even when you are in the
process of expanding client base.

3. SOLVE THE PROBLEM IMMEDIATELY

To curb any revolt, early action is must. Similarly, it is necessary to curb the dissatisfaction of the
employees and clients, the moment any such issue crops up. On sensing any threat in terms of market
or labour unrest, pay attention to it and resolve as soon as possible before it prolongs.

A good leader knows that only committed employees run an organisation. They also are aware of the
fact that only satisfied customers bring good business.
 III. THE ART OF PUNISHMENT
The CEO or the leader of any organisation has a tough role to play. In order to reach the target set to
him by the board of directors he has to tactfully get the work done by his team. Dealing with the
employees of the organisation is not very easy task. He has to consider their problems, look at the areas
in which they are getting held up and solve them immediately so that the work does not suffer.

At the same time, he has to be a disciplinarian. He should be very flexible with the employees but he
should not loose focus of goals and the priorities of the organisation – the reason for which he has been
appointed.

At times, he has to even use his rod (punishments) to discipline his employees. How much punishment
to be given, when to give it and why - is an art, by itself. This art is perfected by Kautilya in the
Arthashastra. This is one of the reasons that Kautilya’s Arthashastra is also called as Dandaniti - the art
or the strategy of punishments.

Is punishment required at all? Can an organisation or leader do without it? Punishments are frame work
set up by any society or organisation crossing which is harmful for every one. What if this framework is
not set?

“If the rod is not used at all the stronger swallows the weak in the absence of the wielder of the Rod”
(1.4.13-14)

The leader or the CEO is the final authority in the matter of punishments. In case he is not disciplining
his team from time to time, there is always a possibility of him being taken as a poor leader. More
important in his absence, the law of the jungle will take over and disturb the set up and structure of the
organisation. The ‘bully’ in the team will start over powering the weak ones as he would have no fear of
the boss, or his actions to be taken after his return.

However, the CEO should not get into the mode of punishing for the sake of showcasing his power and
position.

“The king severe with rod (punishment) becomes a terror. A king with mild rod is despised. The king
just with the rod is honored” (1.4.8-10)

He will become a Hitler if he is too severe with his punishments with unfair reasons. At the same time if
he is too soft, others will take him for granted. The leader who knows the right level of punishments, in
the right manner and at the right time is always respected. He is honored by one and all. Such a leader is
highly productive, that too in a disciplined manner.
 IV. STAYING AT THE TOP
It is easy to get to the top but very difficult to stay there. Once you are in the leader’s position the whole
dynamics of the game changes. It is a matter of maintaining your achievement.

Kautilya was aware of this fact and, hence, guides leaders in how to avoid his and his organisations
downfall.

He points out,

“Control over senses, which is motivated by training in the sciences, should be secured by giving up
lust (Kaam), anger (Krodha), greed (Lobha), pride (Mana), arrogance (Madh) and over excitement
(Harsha)” (1.6.1)

A leader is carefully watched by every person around him. Apart from the external observers like the
media and intelligence agencies, his team members are also watching every move he makes. All his
subordinates look upon him as a role model. Such a leader should be every careful in his private as well
as his Public life.

As Stephen Covey says in the book ‘Seven Habits of highly effective people’, “Private victory leads to
Public victory”.

A leader’s success is maintained by control over the senses. For this Kautilya pointed out the following
six negative aspects that need to be avoided:

LUST (KAAM)

Lust is the deep hunger for any object which comes from over attachment. People at the top level are
carried away by the lust for power. That is why it is recommended that they should be able to identify
the new leaders and train them. Leaders should slowly evolve into mentors guiding the new generation
to take over.

ANGER (KRODHA)

Maintaining a cool head is very essential. A short tempered leader is neither appreciated nor liked by his
team members. Such a person is very unpredictable. One should be able to control oneself in all
circumstances, mostly importantly in public.

GREED (LOBHA)

Gandhiji had rightly said, “There is enough in this world for every persons need but not enough for one
man’s greed”. Satisfaction does not mean complacency. He should be dynamic, yet not get carried away
by only material gains. He should also focus on the social and spiritual contributions he is making along
the way.
PRIDE (MANA)

Even at the top, a leader should be able to initiate more and more projects. However, a sense of “I am
the doer” should not be entertained. He should understand that, after all, his success is an effort of
teamwork. A highly egoist leader is sure to loose his team members in the long run.

ARROGANCE (MADH)

An arrogant leader will always take the credit for the successes, while he would blame failures on
others. Instead, he should share the benefit of the success with every one. His motto should be, “It is
‘we’ who succeed not ‘I’.”

OVER EXCITEMENT (HARSHA)

A leader should never get over excited. Too much expression of emotions like, sadness or happiness has
to be avoided. When the whole world is on fire, it is only the one with a balanced mind who comes
forward with a solution for putting it off.
 V. CREATE YOUR OWN LAW
In Sanskrit language, law is called ‘dharma’ – meaning that which holds. For example, what holds people
onto planet earth? It’s the ‘law’ of gravitation. If this was missing, then all beings would be out of
control.

Similarly – in every home, organisation and country – a certain law exists that holds everyone together.
In most cases, like in our houses, these laws are unwritten yet practised. While in organisations and
countries, they are documented as rules, regulations, constitutions, mission statements, etc.

Here, Chanakya suggests that if there is any organisation where these laws are missing, the king (the
leader) should take the lead in making it.

“When all laws are perishing, the king here is the promulgator of laws, by virtue of his guarding the
right conduct of the world consisting of the four varnas and four asramas” (3.1.38)

So, if you are the leader of an organisation, you have to take the lead in laying down the rules too. But,
before you do that, keep the following in mind:

1. A LAW FOR WHAT?

The first question one needs to ask himself is why do I require this new law? Until this is clear, we will be
just creating something mechanically without having any clarity of what we are doing. In some of the
companies where I did a ‘goal-setting’ workshop, I found that rule-setting was merely a formality, not
something that ‘they’ really wanted from the depth of their hearts. Compliances issues and government
rules are signed on the setting up of new companies without even knowing why these rules have to be
followed. As a leader, it is important to have a clear ‘vision’ for the organisation.

2. BENEFIT FOR ALL

Now, let us go back to the fundamental principle of Kautilya’s Arthashastra. What is the duty of a king?
“To consider the benefit of ALL his subjects and act accordingly”. Therefore, when you are making a
policy, take into consideration the benefit of all and not just oneself. Welfare of all is the foundation on
which we build a country, society and any institute. If this is missing, then subjects will get disappointed
and, in the long run, will either replace their leader or go in search of a new one.

3. A FIT FOR ALL

In the verse quoted here, Chanakya says that the king should make laws according to the four varnas
and asramas. This means that we are looking at various, deeper aspects of subjects and workers – such
as age, talents and natural qualities – while taking various decisions. For example, an economically poor
person stealing a piece of bread may be let off unpunished as it was a matter of survival rather than
stealing. This human angle is important.