India’s top managers are top-notch, says Goldratt

Do you have a mafia offer? Business guru Eli Goldratt, 59, throws that question at a gathering of CXOs in Mumbai, who have all come to savour his insights. “It’s an offer that your customer can’t refuse,” clarifies Goldratt. Such an offer helps create competitive edge—and value. “But your edge can vanish in no time since competitive advantage is just a window of time,” he warns, with an air of suspense you often encounter in his best-selling business thriller Goal. Even as he pats India for having the best top managers in the world, he points to tomorrow’s challenge: two paradigm shifts instead of one. Goldratt spoke to DNA’s Vinay Kamat about his experiences as a consultant and teacher.

Q: You speak of two simultaneous paradigm shifts to create a competitive edge? How do you do that?

A: One paradigm shift is not enough. A paradigm change in sales must be matched by one in operations. Both have to be in synch, and deliver, to create viable vision.

Q: You have labeled strategy as “long-term bullshit” and have counselled managers to chuck strategy books into the ditch. Is strategy a self-realization that comes from full knowledge of organizational constraints?

A: Yes, that’s true. I find people building plants without (properly) assessing market opportunities. When I see what people are doing, I am reminded of gambling in Las Vegas. They [CEOs] call it strategy and continue to do so.

Q: India’s real infrastructure, as you say, is not ports, roads, and airports. It happens to be top management, and you rate India higher than the US and Europe on talent? Why?

A: That’s true. We have had to hold back managers during our management programmes in Indian companies. Elsewhere, we have to push managers. The time we require to train people here is half the time it takes us in other countries. In India, the level of intelligence is higher on average; the openness is higher; the ability to critique is higher. Indian managers should have a superiority complex instead of an inferiority complex.

Q: In your book, the best leaders are those that provoke, not provide, solutions. Have you come across such leaders?

A: The best example of such leadership is Warren Buffet. He does that beautifully. Of course, the other example is me. What defines such leaders? It’s their ability to figure out the solution but exercise enough self-control not to reveal it. Indeed, it’s their ability to remove the stumbling block rather than provide the solution.