Anxiety - Hidden driver of business success

Just Enough Anxiety
26 May 2008

Putting Just Enough Anxiety (JEA) to work

The way to get started is to quit talking and begin doing.— Walt Disney, business innovator and founder of Disney entertainment
Kumar Mangalam Birla was only twenty-eight when he took the reins of the Aditya Birla Group in Mumbai, India, due to the untimely death of his father. Nobody expected him to lead the company into the ranks of the Global 500. But that's exactly what he did.

The young Birla infused the Birla Group with a passion for winning. He embraced Western management methods, placed young MBAs in senior positions, and abandoned his family's preference for hiring fellow members of their marwari business subcaste. In a culture committed to saving face, Kumar bucked social mores and began eliminating unprofitable businesses and balancing tough decisions with respectful benevolence. He shifted the company's focus from fibre-based to ferrous metals and consolidated each business. He institutionalised systems and processes that enabled high-potential managers to be entrepreneurs, and changed management systems to emphasise merit rather than seniority. He hired people he thought were brighter than he was. And through it all, Kumar balanced persistence with patience, self-assurance with the willingness to learn and today's reality with tomorrow's vision.

Through his JEA leadership, Kumar has c;reated a results-driven, decentralised, and networked group of independent companies, run by leaders he both trusts and holds accountable for results. The Birla Group employs 100,000 people worldwide and attracts the best talent from all over the globe. More than 50 per cent of its revenues come from operations around the world.

His transformation of the family company into a $24 billion conglomerate demonstrates Kumar's understanding of how to generate just enough anxiety to propel people forward. "Organisational longevity requires that there be some level of ferment and internal challenge, some level of constant boil," he says. Yet "the process is full of anxiety, uncertainty, and silent suffering," and "leaders need to be sensitised to these issues, to c;reate conditions that are conducive to continuous learning."

Kumar also knows that generating too much anxiety can be disastrous. You have to make a "conscious decision to pace the change," he advises. "Initially, there was the fear that if I rocked the boat too hard the outcome would be worse than what it is now." Today, however, adaptability is an inherent part of the Birla culture. "Change is in the organisational psyche, and it doesn't c;reate any disruptions anymore."

Despite his wealth, education, and power Kumar remains a humble Executive with great respect for others. He's a mature, modern, modest person with a sense of confidence and an unassuming nature, a man with extraordinary aspirations and self-awareness. He believes that when employees underperform, a part of the fault lies with their boss. "My leadership style differs from my father's, but if he were here today, I think he'd agree with everything I'm doing," he says.

It was with his father in mind that the young leader designed the Birla Group's first corporate logo: a rising sun. The image was both a literal translation of Aditya, his father's name, and a unifying symbol for the rapidly growing global organisation. According to Kumar, "The sun embodies the values we stand for: its journey is never ending, and we never stop in our own search for excellence."

Here's a leader who thrives in uncertainty. He lives comfortably in the present and the future. He stretches his organisation while creating an environment that is healthy and collaborative. And he develops and mentors others while continually learning himself. He is a JEA leader.

Kumar Birla's leadership challenges are universal. You may live in a different time zone, work in a different industry or sector, have responsibility for a larger or smaller organisation, or lead a different kind of team. But the issue is the same.

Your challenge is to build a winning JEA organisation. To do this, you need to get rid of the shackles forged by old mental models and outdated leadership methods. You need to understand how anxiety affects you and your organisation and develop new ways of thinking about uncertainty and change. You need to chart and navigate the gaps between where you are and where you want to be. To develop an open mind and open heart. To balance between too much and too little anxiety. To live in paradox. These actions will enable you to c;reate just enough anxiety and unleash the productive energy inside your organisation.

The JEA leader's lens: The new way of looking at leadership

• It's time to embrace change, uncertainty, and anxiety as facts of life.
• We can use our healthy anxiety as a positive force for growth.
• Just enough anxiety is the key to living and leading in our complex world.

The ability to live and lead with just enough anxiety is the great differentiator. You see the world through a fresh lens. This enables you to travel into the unknown (leadership) and manage change and uncertainty (strategy). It helps you inspire and challenge people to stretch into their discomfort zone and perform beyond their expectations (engagement). Just enough anxiety enables you to imagine possibilities and discover opportunities (innovation) to expand your business (growth). This translates into increased profitability and sustainable value creation. It is the proven formula for building a winning JEA organisation.