Celebrated CEO coach and author Ram Charan was the keynote speaker at the AdAsia 2011 inaugural session. Business advisor to some of the world's top CEOs, from Jack Welch to Jeff Immelt and in India to companies such as the Delhi-based Shriram group and to the Cognizant board, his was a keenly awaited session for delegates to understand the big global picture. Soon after his session, he spoke to BrandLine. Excerpts from his interview:

The world is moving through uncertain times, the financial problems on the one hand and movements such as ‘Occupy Wall Street' which has gone around the world on the other. What are the lessons corporate leaders need to keep in mind given the realities and ambiguities in today's world?

You've got to go segment by segment and country by country. Having said that, you've got to be connected to the information that has direct linkage to the decisions in the global financial systems because, as I mentioned, about MF Global, it had 40 times leverage and the CEO was a former CEO of Goldman Sachs, not some nincompoop. The second thing is that we are in this malaise for three-four years, so keep your balance sheets intact because people get caught in the shortage of liquidity and it hurts. So, he or she has to sacrifice growth but don't get caught (in a liquidity trap). And, you need focus. The global financial system is going to impact everyone, the connectivity of the nations is less through trade and more through the financial system, Take banking, for instance, the flows, how much money comes and goes through the stock markets and what happens.

Do emerging economies such as India and China, which are growing rapidly, need a different set of leadership skills than in the mature markets?

It is not so much that – first of all it is the mindset. Mindset for a two per cent growth is different from the mindset of a two-digit growth. Here in India, the promoters and industrialists will hire the best talent, but if their mindset is two per cent growth, they are not going to do it. If mindset is 50 per cent growth but if you don't do the processes, you are going to stumble.

So, in your experience, dealing with so many industry captains here, there is a change in mindset?

Mindset is very important, see how many business houses disappeared in India, they were (caught out) in a different environment and some of them will disappear again, it's just the way the law of life wins.

You always emphasise execution. Indian managers are very good at mapping out strategy and laying down plans but are they good at executing?

It's very hard to generalise, our people are very bright, no doubt about that. But, just like how they get developed in a company matters and some companies have a good culture of execution. If you look at the Birla-Novelis deal, it succeeded because of execution; the Jaguar takeover by the Tatas, it succeeded because of execution. They didn't integrate Jaguar, but somebody has to say you've go to do this and they're doing it, so we have some good people, but others have to come through.

Do you see Indian conglomerates becoming global players?

About being an MNC, you've got to have three things, in that order – if you don't you can still claim to be MNC, but you can't be a successful one. One of the three things is the mindset for decision-making – it's not to go to the whole world at the same time, it needs focus, second is people and third is you've to have the right pace, as profitability and liquidity are very critical. And, some very deliberately, as I gave the example of Marico, have done a good job. I personally believe the Bhartis have done a good job in Africa, it takes time. When I see their counterparts in New York and in Germany, and those guys have no clue how these guys work. It's deliberate and thoughtful and not in a hurry, doing the right things… that savvy we have.

You referred to Steve Jobs during your talk. In short, what can corporate leaders learn from him?

When he came back, he was extremely disciplined. In fact, I will not be able to name five CEOs around the world as disciplined as he was. His issue was before he was fired, after he came back after his exile, he was very disciplined. In fact, some of the CEOs, I tell them one or two things to do, and tell them they don't have the discipline to do it.

People forget that six of Jobs' direct reports remained with him all 12 years. They could have walked out. In fact, I will be hard put to tell you any CEO who has six of his direct reports with him for ten years.

You've been a legendary advisor to global companies, around the world. How do you develop your insights?

One is I don't give theories, I work backwards, to see what is the need and can I help. I do not invest any time in theories, but I do convert theories. If you're a CEO and I figure out you have a problem, I'll pick up the phone and call you. And if I got the problem right, I've got the time for you. And I can tell you, I'm not the man to solve it.

I consider myself pretty up to date on what's being discussed in the top B-schools. Most of the research is rear view mirror, and most of the problems are in the future. And, we need to find solutions to problems and there could be opportunities too.

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