1 September 2024
Ten Lessons for the Leaders of the New Era from Uday Kotak, Founder and Director of Kotak Mahindra Bank
From a 200-square-foot basement office at Mumbai's Flora Fountain to building a financial empire, Uday Kotak, Founder and Director of Kotak Mahindra Bank, has created an extraordinary legacy. Along this journey, what lessons did he gather from his experiences? Uday Kotak, one of the most respected and successful leaders in the financial sector, shared personal anecdotes and ten essential lessons that the leaders of the new era must learn and embody in today's complex world during his lecture at Ahmedabad University.
History: A Lesson or Baggage
Leaders must develop the insight to determine which lessons are worth carrying forward and which should be left behind. Leadership is not just about celebrating successes but also about admitting mistakes. True leaders have the courage to admit when they have made wrong decisions and take responsibility for correcting those mistakes.
Seeking the Truth
A leader must be able to differentiate between narrative and truth, cutting through the noise to understand the crux of the story. A true leader should be like a sponge, absorbing all information but sifting through it to uncover the truth.
Acting in Time
In today’s 24/7 world, leaders have much less response time. The real test of leadership lies in the ability to remain calm and maintain posture while staying alert and agile. It is imperative to be aware of changes, listen, and respond.
Going Beyond Short-termism and Opportunitism
A nation's true leadership potential is rooted in two of the most noble professions—Law and Academia. When the finest lawyers become judges who serve the greater good, and the brightest academics are given the freedom to flourish as educators, earning the highest respect in society, a new breed of future leaders will emerge, becoming true determinants of the country's future. This is the source of ultimate leadership, which can be employed in public policy and the political arena, going beyond short-termism and opportunism and building social consciousness.
Thinking Sustainability
The world has evolved without consideration for the planet, making it imperative for leaders in the new era to prioritise sustainability. The current business model of planet Earth is so weak that it cannot ensure its survival. Leaders benefitting from the planet must collaborate with institutions to safeguard its future.
Regulation, Governance, and Ethics
A disregard for regulations, miscalculation of risks, and lack of compliance can bring even the most powerful institutions to their knees. The collapse of IL&FS serves as a stark reminder of this, as it failed across all six foundational pillars: management, board, institutional shareholders, auditors, rating agencies, and regulatory oversight. This highlights the need for conscious and compliant leaders, both in letter and spirit.
Humans vs. Machines
Machines have taken over human jobs and have proven to be smarter than humans, posing challenges for leaders. This requires leaders in the new era to either harness machines to their advantage or think creatively beyond them. Today, being logically correct is not enough—high creativity is essential.
Preparing for the Shocks
India has seen two financial models: the traditional saver-borrower model and the more sophisticated investor-issuer market model. The country is seeing a massive shift towards the latter, which is more nuanced and complex. The real challenge lies in whether India can absorb the inevitable shocks that come with this transition. For India to become a developed nation, it must develop the sophistication and maturity of its investors and political economy to embrace the market model with all its consequences. The future of India’s financial sector leadership will be determined by the maturity of the country’s people, intermediaries, and the leadership to absorb the shocks.
The Succession Dilemma
Organisations, whether in the old, present, or new era, find it challenging to handle succession. True leadership is to build institutions that are beyond individuals. To become a true leader, one must invest in building the foundations and the structure that outlives themselves.
Entitlement
Society is moving toward a mindset where people feel entitled. As machines and automation take over many jobs, the economic and political landscape will face several challenges. Leaders must be prepared to address these emerging challenges and explore Universal Basic Income as a probable solution, especially when automation makes jobs scarcer.
Uday Kotak delivered the insightful lecture on "Leadership for a New Era" at the varsity campus on August 31, 2024, where he discussed the essential traits future leaders must possess to successfully run profitable businesses while maintaining social responsibility. This lecture was part of the Pinnacle Voices series, a programme conducted by the School of Ultimate Leadership (SOUL).
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