Indian Diaspora Being Chosen to Lead Global Companies is No Accident

Mr. Laxman Narasimhan, former CEO of Reckitt Benckiser, was recently appointed CEO of Starbucks Inc. A few days later, advertising and PR giant Ogilvy (part of WPP, the global marketing and communications group) announced the appointment of Ms. Devika Bulchandani as its global CEO. These two are only the latest additions to an already impressive list of Indian-origin CEOs of global business organizations. This list includes blue chip names like Microsoft, Alphabet/Google, Adobe, Deloitte, IBM, Twitter, Bata, FedEx, Arista Networks, Vertex Pharma, Chanel and many more. Leading global VC firms including Masayoshi San’s Softbank have a number of Indians at the helm.

Ms. Indira Nooyi became Pepsico’s CEO in 2006 (and remained in that powerful position till 2018). However, it’s fair to say that the currently visible trend of Indian-origin leaders being appointed CEOs of global enterprises with headquarters outside India began about a decade ago, with the appointment of Mr. Ajay Banga as CEO of Mastercard. Since then, a number of other leaders who were born/raised and studied in India (at least their undergraduate degrees) have been chosen to lead global organizations across industries. All of them qualified with advanced degrees abroad and have spent a significant chunk of time working in overseas markets; most of them are no longer Indian citizens. Nonetheless, it is a matter of pride that no other non-G7 country has contributed as many executives to C-suites across the globe. Admittedly, the technology sector has the highest number of such leaders as CEOs, but companies from other sectors too are following suit.

To me, this trend is not a fad. It is also testament to more than just the intellectual capabilities, global experience or proficiency in English that these Indian-origin executives offer. I believe this phenomenon is also an acknowledgement of the innate ability and willingness of Indians (I use the word loosely because many of these business leaders are no longer Indian citizens) to deal with adversity, crises and rapid changes- all of which are dominant characteristics of our emerging world. These are the very same elements that have shaped the first 25 years of their lives, and taught them to adapt. This point was made more than two decades ago by the late Dr. C. K. Prahalad, who pointed out that those growing up in India quickly learn to be “natural managers” because they have to deal with infrastructural inadequacies, insufficient capacities and other constraints. This helps them develop a solution mindset and think outside the box.  

Given India’s inherent cultural diversity, Indians are more used to coping with diversity in multiple spheres; this helps leaders work in multi-cultural organizations and environments. Such a complex, competitive environment imbues individuals with a certain level of humility- something that probably also has a cultural dimension. Add to all this the fact that Indians working abroad have to work extra hard to prove themselves at every step- and you have a near-perfect recipe for leadership success. Of course, I must also acknowledge the critical role played by the US and other western nations in allowing Indian-origin talent to evolve, mature and shine. Although no society has as yet achieved the perfect balance, these countries are more proactive in promoting merit and providing equal opportunities.

But it would be unfair if I paint a universally rosy picture. Not every Indian leader who has become a CEO has been successful. There will naturally be variations based on a host of factors including the company, industry, external events, timing of becoming the CEO etc. For example, Vishal Garg, CEO of Better.com did not exactly cover himself in glory when he fired 900 employees on a Zoom call. He is back in the saddle of the company he founded. A couple of months ago, Ms. Sonia Syngal resigned as the CEO of Gap Inc. But there have been claims (supposedly backed by studies) that in corporate America, women leaders typically have shorter tenures and are more likely to be forced out when things start going wrong- irrespective of what causes the unravelling and to what extent the CEO could control those factors. But that’s another topic and I must not digress.

New sectors are emerging, driven by scientific and technological innovation. Combined with India’s burgeoning ecosystem and large talent pool, and changes to our education system and shifts in operational models and organizational development paradigms, we as a nation stand at the cusp of a huge opportunity to accelerate our socio-economic progress. It is time for organizations across sectors to rethink how they engage with talent in order to create enriching work environments that remain productive and mutually beneficial at a time when mindsets and aspirations are shifting more rapidly than ever before. Only then can we ensure that home-grown enterprises too are led by committed, dynamic and visionary leaders who can propel India to the US$5 Trillion league at the earliest.

Given India’s inherent cultural diversity, Indians are more used to coping with diversity in multiple spheres; this helps leaders work in multi-cultural organizations and environments.

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Are Reservations Adequate to Foster Diversity & Inclusion?

                                                   Non-inclusion and lack of diversity are a painful reality that needs to be urgently addressed. 

It is beyond dispute that in different parts of the world – India included – discrimination continues to exist, although constitutional provisions and a number of other laws explicitly prohibit such actions. Several factors such as race, caste, gender, economic status, religion, complexion and other aspects of physical appearance, mental abilities, sexual identity, education, linguistic skills, etc., are used to make distinctions between people that lead to various decisions. Sometimes, the inferences made are limited to an individual’s mind, but often they influence decisions that impact someone else’s life. 

In India, this challenge is visible right from the primary school level and continues till the individual’s retirement and perhaps death. Educational institutions have been directed to ensure affirmative actions to reduce the inequalities in access to and the right to education. This takes the form of reservations of seats based on specific criteria. The government as well as public and private sector organisations have reservations based on various considerations. Certain constituencies too have been identified as “reserved”, which means candidates must come from a specified caste/tribe, etc.

There is no doubt that families, organisations and countries can progress on all fronts only if there is broad societal representation. Countries that are able to achieve this will develop faster- not just in terms of economic indicators, but also in equally critical areas such as health, education, justice, environment, women’s safety, child welfare, etc. But are reservations sufficient to achieve this lofty objective?

Reservations do not Account for “Intersectionalities”

 

I believe that our experience so far in India does not support the notion that reservations are adequate or even the best option. They may be necessary, but are far from being an effective solution in practise because of the reality of “intersectionality”. An individual may not qualify for a reservation based on caste, but what if s/he comes from an Economically Weaker Section of society? Which criterion gets primacy between caste and gender? Unless a priority is determined, it is likely that caste-based reservations will benefit men more than women (from the same caste).

Even in the corporate context, reservations largely manifest during the intake of talent at the entry-level. At more senior levels, the talent pool is largely skewed towards males, who benefit from privilege in various forms (including not being impacted to the same extent by parenting responsibilities). In turn, this reduces the likelihood that women will be able to break the glass ceiling. There are shining exceptions of women who have overcome all odds, but that is more due to their individual abilities, hard work and possibly the good fortune of having excellent mentors and visionary leaders than to an environment that consciously recognises and empowers merit, irrespective of other criteria.

Fostering Diversity and Inclusion Needs More Than Just Reservations

 

A multi-pronged approach is needed to address the issue of diversity and inclusion. The central government (and state governments as necessary) needs to formulate national or state policies across sectors in order to consciously recognise and address the realities of the multiple intersectionalities that prevail in our society. While some of these elements may be conscious individual choices, most of them are “historical” or the result of factors outside an individual’s control. This means reservations must account for various elements that can co-exist and not treat them as discrete. This is easier said than done and may require experiments to figure out what works best. But, in order to reap the benefits of our demographic dividends, we must act now!

However, formulating policies is not enough, as is evident from so many other facets of our society. The key lies in ensuring that the policies are complied with not just in letter, but also in spirit. Multiple stakeholders need to be consulted, so that different views are factored in. Indeed, this is where diversity and inclusion must begin.

Private and public-sector organisations are key stakeholders in an attempt to raise diversity and inclusion in India. These organisations must consciously train their people at all levels to value diversity of thought, opinion and lived experiences. This means changing how meetings are conducted (e.g., by giving everyone the opportunity to speak and not pushing the leader’s views and opinions down everyone’s throats). It means coaching leaders to encourage diverse talent pools to make decisions around promotions, key projects etc. It means walking the talk and rejigging the organization’s rewards systems to recognise and reward diversity that translates to business value. 

“Diversity” should not be limited to gender; it must cover as many elements as possible, including, for example, generational differences. This will become an increasingly important area. It means ensuring that offices are built/modified to provide access to people with disabilities and appropriate amenities. Business/HR leaders must rethink their visions to consciously bring out elements of diversity and inclusion. Genuine efforts must be made to eliminate gender pay gaps, even if it means a hit to the P&L account. All this is not something that can be easily legislated, although some indicators can perhaps be brought under the ESG umbrella.

The problem is complex, and so it does not lend itself to simplistic, formula-based solutions. All stakeholders must have alignment in their thinking so that there is concerted action in various spheres. This alone will enable the world to ensure that diversity and inclusion moves from the ivory towers to the realm of daily life.

Image Credits: Photo by Andrew Moca on Unsplash

A multi-pronged approach is needed to address the issue of diversity and inclusion. The central government (and state governments as necessary) need to formulate national/state policies across sectors in order to consciously recognise and address the realities of the multiple intersectionalities that prevail in our society. While some of these elements may be conscious individual choices, most of them are “historical” or the result of factors outside an individual’s control. This means reservations must account for various elements that can co-exist and not treat them as discrete.

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