Doing Businessin India For Dummies Chapter 19 Ten Tipsfrom Chan

Table of Contents
Chapter 19. Ten Tips from Chanakya, the World’s First Management Guru............................ 1
Strengthen the Seven Pillars of Your Business World.................................................................................................................................................................... 2
Understand the Importance of Stability......................................................................................................................................................................................... 3
Keep Employees Happy................................................................................................................................................................................................................... 3
Make the Right Hiring Choices....................................................................................................................................................................................................... 3
Mix the Old and the New................................................................................................................................................................................................................. 4
Stay in Contact................................................................................................................................................................................................................................. 4
Plan Your Travels Carefully............................................................................................................................................................................................................. 5
Manage Your Money........................................................................................................................................................................................................................ 5
Gather Information before Acting.................................................................................................................................................................................................. 6
Attack the Competition................................................................................................................................................................................................................... 6
Chapter 19. Ten Tips from Chanakya, the World’s First Management Guru. Doing Business in India For Dummies®, ISBN: 9780470127698
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Chapter 19
Ten Tips from Chanakya, the

World’s First Management Guru
In This Chapter
䊳 Considering the wisdom of Chanakya
䊳 Bettering your business through age-old advice
I ndia is a country steeped in spirituality, which has answers to all aspects

of life. Indians are resilient and have a “can do” attitude because they have
had inspiring leaders throughout the generations. One such leader lived from
350 to 275 B.C. and his teachings make sense for the business world today.
This person was Chanakya.
Chanakya wasn’t just the advisor to a king, he was actually a king maker. He
was a religious scholar, economics wizard, and military strategist, all rolled
into one. His military, political, and economic strategies succeeded in fash-
ioning the first nation in the world’s history, cobbling together many little
kingdoms under one powerful umbrella, thus laying the foundation for the
emerging India.
In keeping with the modern management trend of looking back to look for-
ward, Chanakya’s master work, the Arthasasthra (which can be translated
as the “science of material gain or profit”) is on par with The Art of War and
other such works of ancient military and political wisdom. Although cen-
turies old, the Arthasasthra can be adapted to offer insight on corporate
survival in the 21st century.
In this chapter, I share Chanakya’s wisdom on management matters with you.
316 Part V: The Part of Tens
Strengthen the Seven Pillars

of Your Business World
The building that houses your business in India is only as strong as the
materials you use in construction. Chanakya had a similar realization about
the governing of a nation. He came up with what he called the seven pillars,
which, if they were sound, would form the basis of a lasting and effective
regime. Although Chanakya was dealing with affairs of the state, the same
idea can be transposed to the corporate world. Take away the important
Licensed by
parts of the seven pillars of Chanakya:
⻬ The king: The business owner — it is your duty as the king (business
owner) to select strong and able men or women as your ministers.
Vikram Ramanath
⻬ Ministers: High-level managers. These people can both offer you advice
and also implement your instructions.
⻬ The country: Your market. Know your market as well as you can.
1049884
Discover its strengths and weaknesses, and understand where it can be
exploited and where it needs protection.
⻬ The fortified city: Your head office. Run your head office well, and see
that it has all that is required to keep those within its walls productive
as well as satisfied.
⻬ The treasury: Your finance department (whether it’s simply small busi-
ness accounting software on your computer or a massive accounting
department). Keep a close watch over your treasury, and budget for
future needs, as money underpins the whole operation.
⻬ The army: Your workforce or team. Handle your army (your Indian
team) wisely to win their loyalty and steer them in the right direction.
⻬ Allies: Consultants who work with you. Choose your consultants well,
making sure that they understand your needs and are committed to
keep you abreast on all important issues. See Chapter 7 for more infor-
mation on how to select your allies.
If these seven pillars of your business are strong, it can withstand any kind of
challenge, internal or external. Finally, as Chanakya says, make sure that your
seven pillars are firm and strong before the enemy (in this case, competition)
strikes at you.
Chapter 19: Ten Tips from Chanakya, the World’s First Management Guru 317
Understand the Importance of Stability
Growth and progress are the aims of all businesses. But before growth can
occur, stability within has to happen. Chanakya says, “The policy, following
which he were to see neither the advancement nor the decline of his own
undertakings, constitutes stable condition.”
As a progressive corporate head, you need to ensure that your organization

has financial stability and a focused mission before it can move on to the next
rung in the ladder of progress. Another area of concern is fast employee
turnover, especially in IT companies. This problem is a particular nuisance in
India today, with headhunters on the prowl and the young, upwardly mobile
Indian ever on the look out for bigger bucks and designations. You must estab-
lish a work atmosphere attractive enough to see that your staff stays with you.
There are various ways to do so, and you can find details in Chapter 7.
Keep Employees Happy

Chanakya knew what it took to build a powerful presence, be it military, politi-
cal, or economic. He emphasized the importance of workers, and of making
the most of their contributions. In Arthasasthra he states the following:
“In the happiness of the subjects lies the benefit of the King; and in what
is beneficial to the subject lies his own benefit.”
Even 2,000 years ago Chanakya realized that happy, motivated employees
were one of the most important keys to success. Keep this in mind as you
manage your Indian workers! Westerners tend to get excited about the
prospect of saving money by taking advantage of lower Indian salaries, but
remember that wages and other forms of compensation are just as useful a
tool for motivation in India as they are in the West.
In Chapter 7, I describe the various ways you can compensate your Indian
employees to keep them happy, motivated, and working extremely hard for you.
Make the Right Hiring Choices

If you want your employees to be happy, you need to be happy with them.
And that means you’ve got to make wise hires. I talk about recruitment issues
in Chapter 7, but Chanakya also has something to say on the topic.
He felt that a sound, trainable person is one with the following qualities: abil-
ity to listen, ability to think from all angles, ability to reject false views, desire
to learn, and intentness on truth, not on any person.
These pointers come to you from 2000 years ago to help you when you’re sit-
ting in the interviewer’s chair, quizzing prospective employees. You may be
inundated with résumés all citing lofty degrees and competencies each more
impressive than the last. So how do you select the right person? Frame your
questions so that the candidates’ potential (or lack of it) in these areas is
made crystal clear, and presto, your choice becomes easy.
Mix the Old and the New

You can hire the most able, talented employees in all of India, but even that
won’t ensure success if your team India is long on talent but short on train-
ing. That brings me to the next nugget of wisdom from Chanakya: “One con-
versant with the science, but not experienced in practical affairs, would come
to grief in carrying out undertakings.”
India is awash with B-Schools (as business schools are known in India), and
management degrees are in fashion. These schools have excellent curricula and
the caliber of students is outstanding, but make certain that you hire some
experienced staff, too. They can warn you of possible pitfalls and offer advice
on what works or doesn’t in India. Aim for a sensible mix of the old and the new
(particularly those who are eager to be trained) for best results. Good recruit-
ment agencies (look at Chapter 7 for details) should be able to help. And for
new recruits, organize mentoring programs to help them get on-the-job training.
Stay in Contact
Check out the day-to-day running of your organization. To do that, you need
to communicate with a variety of Indians to keep your business well posi-
tioned, supplied, and ahead of the pack. It’s all about networking.
The wily Chanakya realized this two millennia earlier. Referring to the role
of the king (or business owner in the extended comparison), he wrote in
the Arthasasthra that “He should establish contacts with forest chieftains,
frontier-chiefs, and chief officials in the cities and the countryside.” Apply
this dictum to the corporate jungle today — it’s just as relevant.
Regular contact with your staff is essential for maintaining control and being
on top of the important situations at all times. Have a look at Chapter 6, where
I talk of running your business from abroad. And also check out Chapter 16,
Chapter 19: Ten Tips from Chanakya, the World’s First Management Guru 319
where I discuss potential pitfalls. Both chapters should give you a clear idea of
the importance of staying in touch and reading your Indian employees.
Plan Your Travels Carefully

If you have multiple branches or if you’re managing your Indian business
from abroad, travel and logistics form an important part of your work. In
Chanakya’s view, it formed an integral part of the king’s role too, and he had
this advice to offer: “He should start after making proper arrangements for
vehicles, draught-animals, and retinue of servants.”
These words are valid in today’s Indian business context, because transport
and logistics hurdles are important ones to see and to clear. Sure, you won’t
need draught-animals or a retinue of servants, but you do have to plan for
your needs: look up plane and train timetables, budget for delays, book your
hotel rooms in advance (see Chapter 10), and double check your product dis-
tribution and transportation structure. If you don’t plan your comings and
goings (and those of your products) down to the last detail, you could have
to pay heavily in terms of time, money, and frustration.
Manage Your Money

Familiar with the importance of monitoring the financial aspects of an opera-
tion, Chanakya stressed the need for consistent accounting and frugality
with funds.
He also has this to say: “If the (officer) does not deliver the income that has
accrued (or) does not pay the expenses put down in writing (or) denies the
balance received, that is misappropriation.” That’s an important pointer for
you in India, because it’s related to the problem of hierarchy, something that
may seem strange and irksome to you.
Although educated, enlightened top-level management staff in India play fair,

you may find that your accountant or someone in the lower rungs of manage-
ment chooses to exercise power in petty ways like holding back legitimate
payment to staff and clients. They may employ delaying tactics, such as
saying that invoices haven’t been received or processed, sanctions are taking
excessive amounts of time, authorized signatories are away, and so on all to
keep people waiting. Explain, sometimes many times over, that such prac-
tices aren’t tolerated. The message will get across.
Gather Information before Acting

Based on the next nugget of wisdom from Chanakya, a version of the SWOT
(strengths, weaknesses, opportunities, threats) analysis existed way back in
the third century B.C. Chanakya has the following to say about the impor-
tance of carefully considering the business landscape before jumping into a
new venture:
“After ascertaining the relative strength or weakness of powers, place,

time, revolts in rear, losses, expenses, gains and troubles, of himself and
of the enemy, the leader should march.”
In today’s India, you — the Western businessperson looking to start up in

India — are the leader, so before you “march” into your Indian business ven-
ture, be sure you’ve done your research! Pay special attention to the strength
and quantity of competition and how your finances can cope with the curve-
balls that the Indian business environment is sure to throw your way. Check
out Chapter 9 on money, for more details on finances.
Attack the Competition

Chanakya knew that a king can’t be without enemies. At some point in his
reign, he must be prepared to meet the enemy, and his future depends on the
outcome of the meeting. Think about this in terms of business, with you —
the business owner — as the king. The corporate world is a veritable war
zone today, and Chanakya’s advice to the king who comes face-to-face with
the Shatru (enemy) in battle holds true in boardroom and market battles: “If
near him (the enemy), he should strike at his weak point.”
But how does one strategize and make this move against the enemy
(competitor) in today’s corporate world? Here are a few tips:
⻬ Study the competition.

⻬ Discover everything there is to know about your competitors.
⻬ Understand the rules of the market and practice well.
⻬ After you’re confident, go for the attack.

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Table of Contents

Ten Tips from Chanakya, the

I ndia is a country steeped in spirituality, which has answers to all aspects

In this chapter, I share Chanakya’s wisdom on management matters with you.

Strengthen the Seven Pillars

As a progressive corporate head, you need to ensure that your organization

Keep Employees Happy

Make the Right Hiring Choices

Mix the Old and the New

Plan Your Travels Carefully

Manage Your Money

Although educated, enlightened top-level management staff in India play fair,

Gather Information before Acting

“After ascertaining the relative strength or weakness of powers, place,

In today’s India, you — the Western businessperson looking to start up in

Attack the Competition

⻬ Study the competition.

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