Featuring:
K V Rao, Resident Director – ASEAN, Tata Sons Pvt Ltd. Chairman & Board Member, Tata Group Regional Subsidiaries – ASEAN

Interviewed By: Sripriyaa Venkataraman
Curated By: Chandrani Datta

How can leaders develop this ability to see the future?

You see, everyone wants to know the future. That is why people seek responses and predictions about their personal futures. Even companies in India consult soothsayers to gain insights into future outcomes. Nowadays, large corporations organize trendsetting workshops, bringing together leaders from diverse companies to identify emerging trends. However, in the realm of leadership and management, we have become increasingly left-brained and data-centric. While data is important, it does not fully reveal what the future holds. Future trends, innovations, and disruptions are not easily predictable, and the mindset of leaders is often linear rather than holistic.

To truly understand the future, leaders must engage their right brains, embrace uncertainty, and explore the grey areas. They need to develop a sense, a gut feeling, by observing and perceiving carefully. Knowledge and intelligence are important, but experience and wisdom come from a journey through life’s challenges. Wisdom, in my view, involves widening intelligence by exploring diverse subjects, gaining experience, and learning from both success and defeat. It also requires embracing intuition, insight, and developing a keen perceptual ability.

A leader must rise above the narrow focus of data and tap into spatial awareness, like being atop a mountain to gain a broader perspective. This investment in perceptual ability, insight, and intuition can significantly enhance leadership effectiveness. As we navigate the future, it is crucial to embrace wisdom, balance data-driven insights with intuitive understanding, and have the courage to lead and shape a new future.

In your opinion, how would you describe the cycle of understanding, gaining wisdom, and leading fulfilling lives as human beings? As we progress into the future, what perspective should individuals adopt when contemplating this cycle?

Since you talked about water, let me provide you with an example from the realm of water. If we consider sea routes and how ships navigate, we can observe predictable conditions of the sea. There are maps that guide these journeys, aided by navigational tools on board the ship. These concepts have been innovated by humankind thousands of years ago, even before the advent of modern shipping startups. Interestingly, we still apply these navigational principles within corporate structures. However, when it comes to the future, we lack a map of the ocean, with its temperature, volatility, and how the sea moves.

As leaders, we find ourselves in a similar position to ship captains. There are three types of people who fall into different categories. Firstly, there are those who are least bothered. They feel comfortable and secure within their roles, believing that the ship is well-equipped to handle any weather conditions. They trust that everything is organized and operate with a false sense of security. However, this mindset can be deceptive, as it relies on the assumption that external factors will always work in their favor.

Secondly, there are leaders who acknowledge the rough sea ahead. They understand the challenges and uncertainties, but they are willing to jump in, keep themselves afloat, and navigate through the turbulent waters. They exemplify adaptability and are prepared to face changing circumstances.

The third category is comprised of a rare breed of leaders. They possess the ability to identify new waves and disturbances on the sea. They not only navigate through them but also leverage those waves to propel the ship to new heights. They actively shape the future and chart a course that takes their organization to uncharted territories. This level of leadership requires perceptive insight, intuition, and immense courage.

Becoming a leader of the third type is no small feat. It requires not only a deep understanding of the present and a clear vision for the future but also the bravery to take bold actions. While data can inform decision-making in our data-centric world, it may not always provide definitive support for the right course of action. Leaders must strike a balance between utilizing available data and trusting their ability to see beyond the numbers, relying on their instincts and foresight.

In summary, these three types of leadership demonstrate varying levels of engagement and forward-thinking. To be a leader who shapes the future, one must possess perceptiveness, insight, intuition, and the courage to go against the tide. Balancing data-driven insights with visionary thinking is crucial for success in navigating uncharted waters.

How can leaders navigate the balance between staying ahead of change and ensuring long-term success, considering the unpredictable nature of emerging organizations and the risks associated with being too far ahead of the curve?

It is again, three things which come to mind based on my own experience, practice, and observations of leaders.

First, let’s talk about fundamentals. Fundamentals here refer to the core beliefs and values of leadership, beyond just financial or operational aspects. It is important for leaders to establish a strong belief structure that guides their decisions and actions.

Next, we have disruption and destruction. These concepts go hand in hand. While it is necessary to embrace disruption and seek new opportunities, leaders must also carefully balance the risks involved to avoid causing destruction within the organization.

Lastly, it is crucial to have a strategy that preserves and enhances your existing value while also considering future possibilities. Just like cooking, where you have a beloved traditional dish that everyone enjoys, there is always room for improvement and innovation. By incorporating new ingredients or techniques while maintaining the dish’s essence, you can create progressive change that delivers value to both existing and new customers.

Whether it’s bringing new technology into an established industry or venturing into entirely new territories, leaders need to protect the core fundamentals of the business while occasionally disrupting it to drive growth and longevity. This is particularly relevant in today’s disruptive world, where startups are challenging established companies with their innovative approaches. While startups may lack the baggage of the past, they also face the challenge of building a track record and credibility. Eventually, all organizations must find their place and create value for themselves and their customers.

In summary, the leadership journey, whether in traditional or new companies, requires getting the fundamentals right and striking a balance between preserving the core and embracing change. This enables leaders to navigate the challenges and opportunities that come their way.

How does the development of cultivating collaboration with intuitive faculties occur?

First and foremost, I believe that our reliance on analytical abilities is valuable but often overemphasized, especially in the training of typical management professionals and MBA students who tend to focus more on analytical deductive reasoning. While there is some emphasis on arts, creative writing, imagination, creativity, and innovation in their coursework, it is not fully integrated with logical processes. As a result, individuals who possess intuitive or creative capabilities may not fit the mold of extreme logical thinking.

There is a quote from a Greek philosopher that reminds me of the true intelligence residing in a remote part of the brain or team. These individuals may not speak up often because they possess intuitive and insightful inputs that could potentially be dismissed by the prevailing logic in a meeting. Therefore, it is important to create a space that allows for these intuitive contributions. I will share three or four ways to experience and cultivate intuition.

Intuition can be seen as a guiding light that extends beyond the intelligence of the mind alone. Our bodies also possess intelligence, which becomes evident in certain situations. For example, we may feel fear without any logical explanation or feel drawn to a particular place based on our body’s response. Similarly, moments like witnessing a breathtaking sunrise or sunset on a beach evoke a sense of wonder and connection. These experiences tap into a bodily and memory-led intelligence. By quieting ourselves and being present, we can allow these intuitive signals to emerge. Additionally, much work occurs on a subconscious level, as our conscious and subconscious lives coexist. Many of us experience stress and dreams, which can offer valuable insights and guidance. I recall attending a dream workshop during my early years as a manager, where we spent a week exploring and interpreting our own dreams. This exercise provided valuable guidance for our day-to-day lives.

Developing intuition cannot happen overnight, but there are a couple of basic steps that can help. Firstly, we need to be receptive to everything happening around us, including the good, the bad, and everything in between. By paying attention to the emotions and dynamics present in meetings and conversations, we can perceive much more than what is explicitly stated. Assimilating all this information and allowing it to rest within our consciousness without immediate judgment is crucial. Rather than immediately questioning whether something is right or wrong, we can suspend judgment and let the insights settle within us. Then comes the next step: reflection.

Reflecting on our experiences, regardless of whether they are mental, emotional, logical, or illogical, allows us to gain deeper insights. This process is akin to looking at ourselves in a mirror, examining our experiences from various angles. During reflection, a sense of what is right or appropriate may emerge, leading to eureka moments. This integration of receptivity and reflection nurtures the development of intuition.

Intuition is not a linear process. It considers a wide range of factors, including what is happening in the world, within our teams, with our environment, and in competition with others. Such complexity makes it challenging to find solutions through straightforward, linear data processing. Intuition encompasses multiple variables and requires allowing them to settle and interconnect. It’s important to acknowledge that there may be times when intuition does not provide immediate answers. We cannot force intuition to come forth, but by developing the skills of receptivity and reflection, we increase the likelihood of accessing our intuitive insights.

Once intuition speaks to us, it delivers a clear message from within. This inner voice guides us towards what feels right. By acting on our intuition and witnessing positive outcomes, we develop confidence in its worth. It is crucial, however, to balance intuition with risk assessment and evaluation. Not every intuitive feeling should be followed without careful consideration.

As we continue to polish our intuitive skills, we can leverage intuition to make informed decisions. We must remain receptive, reflective, and open to risks and evaluations. In doing so, we unlock the power of intuition to navigate the complexities of the business world.

I often hear the terms correlation, causation, contradiction, and connection being thrown around. As leaders, how do we make sense of these elements and piece together a cogent strategy?

I think I perhaps mentioned this, you see, correlation and causation are interrelated. This is linear. Connection is also related because it’s like correlation. Contradiction is what arises from outside or in your mind, so it’s still a very linear set. So when you want to take a company or develop a strategy from point A to B, you need to consider what happens in the environment that you may not even identify or consider as a possible causal factor. You can only identify and find the cause if you are able to correlate and understand it. Contradiction is a logical process that is connected to this.

What I’m saying is that logic alone is not sufficient. You need to enrich it by incorporating unrelatable elements. For example, a pharmaceutical innovation may impact the telecom industry. In this larger world, seemingly unrelated things become connected. Therefore, leaders need to develop spatial thinking and engage with subjects they have never explored before. This teaches them valuable lessons and allows them to create correlations that lead to success. It’s important for organizations to embrace diverse perspectives, such as including artists or cultural leaders in boardrooms, as they bring unique insights and perceptions.

When the problem becomes too predictable and similar, it hinders future growth. To break through, leaders must provide space and access for new ideas. Additionally, leaders should learn to pause and create time for reflection, thinking, reading, observing, and engaging in various activities that expand their horizons. By doing so, they become more powerful and generate a wealth of ideas.

You might have seen decades of change, and you’re here today. How did you see around the corners and make the right shifts?

My personal journey consists of two parts. Firstly, it involves developing the mental management skills to see what others don’t see and to explore dimensions beyond the majority perspective. Secondly, it requires honing the senses of leadership: seeing, smelling opportunities and risks, hearing beyond the surface, tasting success and failure, and reaching out to touch and connect with others.

When you meet people, you’re building bonds, and you never do this journey alone as a leader. It is your teams. It is your partners. It is your customers. It’s your technology suppliers. It is your joint venture partners. How do you build a very powerful bond of trust through care, compassion, and ethics? It’s like touching somebody and getting more than 100% from them for the greater good. These five senses are simple to remember, and if you develop them, they will be very useful for leaders to become good futurists as well. Personally, I have had the privilege of working with great bosses who have been the masters in practice. It’s like learning classical music where you sit with a senior sitar player, and they perform. There is no greater learning than witnessing the maestro’s performance and absorbing the essence in those precious moments. I am grateful for the remarkable lessons I have learned from these masters, and I am fortunate to have maintained connections with some of them.

Three things that stand the test of time…

Building strong relationships and connections requires coordination, authenticity, and empathy. Be real and true to yourself, and let go of self-consciousness. Authenticity is also about being truthful and honest, even in moments of vulnerability. When you show your human side to your direct reports, it fosters honesty and openness. As leaders, we can learn a great deal from the younger generation and be open to reverse mentoring. Building bonds of trust involves empathy and authenticity as essential tools. Regarding planning for the future and making strategic decisions, the fundamentals of business guide us to protect the core and the base while experimenting and taking calculated risks.

Leaders should avoid going to such extremes that it becomes destructive and diminishes value. It takes time to develop insight and decision-making power, but with experience, leaders gain the ability to cut their losses wisely. Young entrepreneurs starting their own startups today have an accelerated learning curve and quickly learn from their experiences to position themselves smarter for success. They embrace the process of falling down, getting up, and placing their bets more effectively. The first startup may not always be successful, but they persist and learn from it, paving the way for future achievements.

What stage should leaders cut their losses?

When it comes to the fundamentals of business, one key aspect is to protect the code and safeguard the base. While it’s important to explore and experiment, we must be cautious not to venture into territory that could be destructive and erode value. This is a significant challenge that needs to be addressed.

Over time, you will develop the insight and ability to navigate these decisions. It may not happen immediately, but with perseverance, your decision-making skills will improve. Those of us who have been in the field for a while have learned these lessons through experience.

On the other hand, the young entrepreneurs of today’s startup ecosystem are experiencing an accelerated learning curve. Within just a few years, they are gaining valuable insights into what works and what doesn’t, and they are becoming smarter in their approach to positioning their ventures. I greatly admire their learning mindset. They may stumble and fall, but they possess the resilience to pick themselves up and learn from their experiences. This allows them to make better bets in subsequent ventures. It’s inspiring to witness their enthusiasm and determination. Often, they say that the first startup may not be successful, but they continue to persevere, leading to success with their second or third attempt, leveraging the lessons learned along the way.

What will make Tatas successful in the next 100 years or after 100 years?

I feel immensely fortunate to have been part of this organization for the past two decades. The values that have been ingrained since the time of the founders have remained unchanged, which is a testament to the authenticity and integrity of our institution. It is truly a unique organization in terms of its structure and its commitment to serving a larger purpose.

Speaking of the future, our diverse group has consistently demonstrated agility and the ability to reinvent itself multiple times. During the tenure of GRD, we witnessed the remarkable history of building this extraordinary enterprise. When Ratan Tata took over, he saw the global opportunities and encouraged our companies to expand internationally. We engaged in numerous acquisitions worldwide, which significantly boosted our global presence across sectors such as automotive, steel, chemicals, tea, beverages, and hotels.

Today, we are led by Mr. Chandrasekaran, a visionary leader with a brilliant mind and strong foundational principles. His tenure has brought about a massive transformation within a relatively short period. Last year, the group achieved its best-ever performance in terms of both top line and bottom line, a remarkable achievement for an organization of our size, which employs close to a million people across various technological domains.

Let me provide you with some insights into our strategic focus. India holds a central and core position within our group, especially considering the country’s current growth trajectory, which may be an unprecedented historical inflection point. Every sector in India presents immense growth potential, and our leader has encouraged us to think bigger, aspire higher, and adopt an out-of-the-box approach. This has propelled us to make significant progress.

Mr. Chandrasekaran outlined three key principles to guide our focus. First, he emphasized the importance of simplicity in navigating a complex organization. Second, he advocated for focusing on areas of true expertise rather than spreading ourselves too thin. And third, he highlighted the significance of synergy within our vast group.

Looking towards the future, our leader has made strategic bets that will have a substantial impact on our organization. The world has evolved, and we have responded accordingly. For instance, we have ventured into the electronics and semiconductor businesses, which are entirely new and transformative for us, requiring significant investments. Additionally, we have restructured our businesses around tourism, including hotels, associated smaller ventures, and airlines. Through mergers and a focus on transformation, we are on a journey to make a significant impact in the airline industry, both domestically and internationally. The transformation of our Motors division towards electrification of vehicles has already positioned us as a dominant player in the Indian market, with high demand for our cars. Furthermore, we have made substantial investments in renewable power, solidifying our presence in the sustainable energy sector.

These strategic initiatives propel our group into the future and establish a foundation for the next 30 to 50 years. Like Singapore, which constantly reinvents itself, we have undergone transformative changes every decade and continue to evolve. These recent years have been particularly transformative for us. Although I haven’t covered all areas, our investments in the aviation sector extend beyond airlines to include aircraft and helicopter manufacturing, as well as defense. These new business areas will significantly shape our future.

As I approach my retirement, it fills me with immense joy to see the organization poised for success in the coming decades and beyond. It is truly an exciting time, and I am confident in the future of our group.

What is the one story that has stood with you?

I have completed 43 years in the corporate world, and I am approaching the end of my career. Throughout this journey, I have experienced moments of happiness, distress, stress, depression, elation, achievement, and failure. It’s a culmination of various experiences that make up life.

However, there is one important realization that I have embraced, not only for myself but also for the younger generation in the outsourcing era. While we outsource many aspects of our lives, unfortunately, we have somehow outsourced our happiness to others. By relying on external factors such as the opinions of our boss, spouse, children, friends, or our perception of societal expectations, we place the responsibility of our happiness on them. This equation of subconscious perceptions and seeking joy from external sources is a recipe for pain and unhappiness. Happiness should not be dependent on something or someone else meeting our wants and needs.

As I enter the later stages of my corporate journey, I have come to realize that there is so much to be happy about every morning when I wake up. I can bring joy to others and myself. The more I spread happiness, the happier I become. I radiate positivity regardless of the challenges I face. Whether it’s a good or bad day, I wake up the next morning with a sense of excitement and readiness.

It takes time to cultivate this mindset, and it’s easier said than done. However, I always encourage people, regardless of their age, to take their happiness into their own hands. Find happiness from within, appreciate what you have achieved and the blessings you have received. There is no need to worry about missed promotions or the need to be somewhere else. These thoughts only lead to unhappiness. A contented and happy person not only benefits themselves but also spreads cheer to others. It’s a habit that should be nurtured. So, in essence, I believe there is no cause for worry when we realize that true happiness comes from within. Embrace gratitude, focus on the present, and make happiness a habit rather than relying on external circumstances.

K V Rao

Resident Director – ASEAN, Tata Sons Pvt Ltd. Chairman & Board Member, Tata Group Regional Subsidiaries – ASEAN

KV Rao is a Senior Business Leader and Resident Director – ASEAN at Tata Sons Pvt Ltd. He is a distinguished alumnus of the Indian Institute of Foreign Trade, specializing in International Business. With a wide-ranging career spanning diverse industries, including the Singapore Civil Service and running a successful Consulting Business, KV Rao brings extensive global experience, having worked in over 45 countries and across various cultures. Moreover, he serves as a prominent member of several prestigious organizations, including being a Board Member of Tata Group Regional Subsidiaries – ASEAN, Member of the Board of Advisors at SICCI, Chairman of CII – India Business Forum in Singapore, Vice President of SINDA, Vice Chairman of the South Asia Business Council of Singapore Business Federation, and President of SIFAS.