What we need is innovative board
The Pioneer, New Delhi {Tuesday, December 30th, 2003}
Dr Madhav Mehra is a unique management visionary with a strong passion for promoting Indian brand overseas. He is the founder of India's Institute of Directors and is currently Chairman of World Quality Council and President of UK based World Council for Corporate Governance.
What led you to start this Institute of Directors?
According to a Chinese proverb if you wish to clean a staircase, you have to begin at the top. Founding of IOD coincided with the beginning of India's economic reforms. We thought the only way to improve the competitiveness of India's companies is to upgrade professional skills of the directors. I believe the corporate leadership has a tremendous role to play in the economy of a nation. In today's economy it is the business that drives the government. Institute of Directors was founded fifteen years ago with the aim of improving competitiveness of Indian leadership. In 1990, we held the first World Congress on Total Quality and this created a platform that imparts leadership skills to our top management. We get experts from all across the globe to come and take up workshops on leading edge business topics which we call tutorials. Companies like ONGC, Reliance, Ranbaxy have all participated in our training programmes.
So far, what do you consider as your achievements?
This institute has helped in transforming the corporate landscape in India. It has helped in upgrading the quality of products of Indian companies and improve their competitiveness. We are now engaged in creating expertise on Six Sigma and an awareness of Corporate Social Responsibility. Corporate Social Responsibility is not philanthropy but something that is embedded in the company's strategie intent to uplift local communities and improve public perception of its social role. The heart of India lies in the villages and the companies should go and adopt the villages around them and live up to their social expectations. The World Congress that we hold every year too provides a platform to improve individual competitiveness. The Golden Peacock Awards that announced every year in this congress for quality and innovations etc. provide a huge incentive to Indian companies to become world class.
What do you hope to achieve with this year's World Congress on Total Quality?
The theme of this year's Congress is "Triple bottom line approaches for building the corporations that last". The concept of quality has moved from just products or services to new areas encapsulating people, society, environment and governance. Broadly the success of the company stems from focus on three things- profit, people and planet. This requires triple bottom line approach. Profit alone can not run the business unless human quality is improved. Similarly human quality cannot be improved if the natural environment is being degraded. They all have to go hand in hand.
What views do you hold on the national and international market scene?
The markets of today are driven by teenagers. There are 2 billion of them today-one third of world population. This calls for a change in board's composition which must have diversity in age, ethnic background and experience. Board's today are run by people nearing retirement leading to a chasm between board expectations and customer aspirations. 21st Century is a century of opportunity. The key to capitalize this opportunity is innovation. Companies have to enter new markets and tap new customers. Women, teenagers, villages and working class all offer new markets. What we need is a board who knows how to nurture innovation.
