How top class management gurus are different ?

Sometimes when top management gurus like Ram Charan, C K Prahlad, Jagdish Sheth, Michael Porter, Peter Drucker, Henry Mintzberg and others focus on basics, the audience may feel that they are not providing ready to deploy magic bullets. Hence, it is necessary to understand science behind this approach. According to Harvard professor Gerald Zaltman, 95% of thinking takes place at unconscious level. Nevertheless, it is 'thinking'. Hence, it is wrong to believe that thinking does not always precede actions. It does, but at most times we are not consciously aware of it. Researchers in Neuroscience, Behavioural Economics and Emotions highlight this fact. Hence, the practitioners need to stuff their mind with knowledge without worrying about its immediate application. But brain prefers less over more in order to optimise energy usage required for its functioning. This is where focus on basics comes into play. Basics are limited but applications can be varied and numerous. Once basics are grasped, the practitioner who is better conversant with his sectoral and organisational context can herself think the solution through.

This is a prime reason real top class management gurus focus on basics. For instance, if one is to be convinced of strategic role of human resource management (HR), Dr Ram Charan tries to link it to market capitalisation (M Cap). Then one can think in terms of basic building blocks of both the M Cap and HR. Basics of M Cap include ROI, Cash and Investor Perception of all this. Break it further and the list includes Revenues, Costs, Taxes, Investments, Cash Receivables & Payables, Number of Inventory (FG) Turns, Corporate Identity and Communication.

Building blocks of HR include number and talent mix, access to it, compensation, learning and development, retention etc. Now establish connection between the two sets of building blocks. Who brings in revenue? who manages cost? who deals with taxation? who optimises investments? who manages cost receivables and payables? who can increase number of turns? who defines corporate identity and who communicates it. Who else but People. It is HR which through its various building blocks facilitates use of market capitalisation levers. Once this point is seen it becomes easy to change perspective of HR as a cost centre to HR as investment. Management guru like Ram Charan uses aforementioned approach to convince top management about strategic role of HR. Of course he cites several real life examples to create buy-in.

Hence, while seeking advice or attending workshops of top class management gurus one needs to be clear that their role is to underscore basics and subtly but powerfully change the mindsets. Another unique trait of these top class gurus is that they never over sell. They understand limitations of various ideas. They use their words very carefully. For instance, when they say people investments are a great way to build market capitalisation, they do not say that it is the only way or it alone will do it. Management requires a complete ecosystem of which people is one, probably most important, ingredient. McKinsey 7-S is one framework for thinking about such an ecosystem. Many motivational and some other speakers on the other hand sound charismatic through their style but more often than not do not create much learning. It is worth reminding ourselves that learning is relatively permanent change in thinking and behaviour. Something which sounds euphoric for a few hours, inside an action packed auditorium with cheering crowds, wears off quickly if it does not provide the brain with basic building blocks.