India Inc CEOs reach out to 'rank and file' to tackle slowdown better

In difficult times, such meetings with rank and file also have great signalling value, helping CEOs communicate strategy shifts or course corrections.

MUMBAI/KOLKATA: At least twice a month, Chanda Kochhar, managing director and chief executive officer of ICICI Bank BSE 1.26 % , the country's largest private lender, takes time out to engage with groups of 15-20 employees. The groups are made up of peers — a group of 15 general managers for instance or a group of 35 year olds. Whatever feedback she receives is carried back on a no-name basis.

"A leader should not sit in an ivory tower but be close to the reality on the ground...engaging with the teams is one of the most important ways of doing this," says Kochhar. And when the reality on the ground involves a crippling economic slowdown, CEOs can gain valuable insight by tapping those in the frontline.

Even in the throes of the country's worst slowdown ever, honchos like RPG Enterprises chairman Harsh Goenka, Nitin Paranjpe, till recently Hindustan Unilever BSE 2.22 % CEO, Saugata Gupta, CEO of Marico BSE 3.58 %, Rupa Kudva, MD and CEO of Crisil BSE 1.23 %, Richard Rekhy, CEO, KPMG India, are intentionally engaging with rank and file.

This may have started-off as yet another 'nice' thing for a CEO to do, but it is turning out to be a useful slowdown strategy. First, CEOs get a first-hand report from the trenches. Second, they get a decent shot at keeping employee morale up and an opportunity to identify problems, if any, early. Third, such regular interactions can also be a fountainhead of innovation.

"Strong connect between the CEO and employees is needed at all times, but when the going gets tough it is important for the leader to communicate and connect even more," says Saugata Gupta, CEO, Marico.

"It is in tough times like these, when markets are not doing well that you need more ideas," says Crisil's Kudva. "These initiatives become more relevant in a tough economic scenario."

In difficult times, such meetings with rank and file also have great signalling value, helping CEOs communicate strategy shifts or course corrections forcefully and quickly.

"It is important for the leader to have a regular engagement with the teams on the ground to communicate the vision and strategy down the line," says Kochhar. "This helps the team understand how what they are doing relates to the larger objectives of the organisation...itbuilds a shared sense of purpose." At the same time, this interaction acts as an important reality check and feedback mechanism for the leader, she adds.

RPG Enterprises chairman Harsh Goenka loves to engage with employees in an area in the office called Chill Zone, where people connect over indoor games, library and a cafeteria. He also engages with youngsters through the Young Executive Board (YEB), a shadow management board of 10 young high potentials.

"Subjects taken up by YEB are strategic in nature and related to 'big five' steps which are strategic to the company's future vision," says Goenka. KEC International's entry strategy for Solar and Wind SBU was chalked out by the YEB. He also conducts one-on-one meetings with top talent, spending more than 50% of his time on people.

"Higher engagement helps at all times. Especially during adverse economic climate when tough decisions have to be taken pertaining to increments or replacement of existing vacancies," says Goenka. "When we reach out to people and genuinely share our reasons, we have seen higher acceptability of decisions."

Crisil's Kudva conducts training sessions for middle and senior management employees on different functional areas. While employees get an opportunity to hear the CEO's perspective and raise questions, she gets people's feedback.