Ram Charan is a highly sought-after business advisor famous among executives for his uncanny ability to solve their toughest business problems. He has authored 15 books since 1998 that have sold over 2 million copies in more than a dozen languages. One of his more notable works was the New York Times best seller, Execution: The Discipline of Getting Things Done. Dr. Charan’s articles have been published in Fortune, Harvard Business Review and Strategy+Business. Ram was elected a Distinguished Fellow of the National Academy of Human Resources and has served on the Blue Ribbon Commission on Corporate Governance. He has served on the boards of Hindalco in India, Emaar, Austin Industries, Tyco Electronics, and Fischer and Porter. His latest book is called Global Tilt: Leading Your Business Through the Great Economic Power Shift. In this interview, he talks about the global tilt, which companies are succeeding and failing right now, America’s economic recovery, his recent conversations with CEO’s and more. What is the global tilt? Economic opportunity has shifted in a major way from countries like Europe, Japan, Western Europe, and America, to countries like China, India, Indonesia, and parts of Africa. It is where the major industries are going. It is where the major population is. It is where the trade among these countries is now exceeding their trade with the countries in the North. So if you draw a line at approximately the 31st parallel, you see that the global tilt is from North to South. Which countries are blooming right now, and which ones are flopping? Growth in the North is low. America’s growth rate is two to three percent; Europe and Japan are growing at less than one percent. These advanced countries are very low growth, whereas in the South, the growth rate is much higher. India’s growth rate is between five and six percent; China’s growth rate is about seven percent; and Indonesia is about six percent. Both growth rates and future outlook are very positive for the South, and that is why we have a tilt. What are your impressions of the economic recovery for America? My impression is that there are many good things in America. It is an innovative society; despite government laws, innovation in America continues. The economy is recovering; people have initiative, and there is technological development going on. Given this, I am cautiously optimistic. If radical federal cuts do not take place, you can count on a three percent GDP on average per year for the next three years. What are some of the more interesting conversations you’ve recently had with CEOs about the workplace? If you’re talking to executives in America, the highest item on their agenda is finding profitable growth in the home market. At the same time, they want to relocate their resources and people to put their footprint in the South. They also need expert talent, which is in short supply in a number of areas. How did you originally earn the respect of CEOs, being able to co-author books with them, and just be in their inner circle? My motto in life has been that anything I do, or write, or speak, or teach must be usable. I don’t invent new theories; I look at the theories I personally observe in real life, and try to make them usable. That’s my mission in life. If you’re helping somebody and it’s important them, that’s what the executives value. What are your top three workplace trends for this year? 1. Collaboration in the workplace is central. Millennials are coming in with a different outlook, which is good news. Without collaboration, workplaces cannot succeed. 2. You’ve got to assign people to the task they love to do, rather than applying the old command-and-control. Leaders need to work with their people, watch their attitude, and put them on the right assignment. And rather than waiting until the end of the year for performance reviews, managers must coach people all along the way. People appreciate constructive coaching that expands their capacity. 3. Working remotely is on the rise, and contrary to some belief, it is not a threat to the success of the workplace. What would you recommend to people entering the workforce now? Three things. First, “expert workers,” which I formerly referred to as “knowledge workers,” need to seek out companies that know how to use their expertise, can quickly assimilate them, and give them the opportunity to continue to hone their expertise. Second, people interested in becoming a leader, supervisor, or manager need to go to those companies that have a clear pattern of identifying such people’s talent early, and giving them opportunity instead of keeping them for a long time in the individual contributor category. Third, people entering the workforce need to choose employers who will help them in never becoming obsolete.
Posted on: Sat, 03 Aug 2013 09:56:50 +0000
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