EXPERIENCE Case Study Won ong ‘Abhishek Goel sn asistant pre ‘organizational ohana th Wa ot Manages Calcutta ata, | The regional head of business contemplates | the best way to handle the hotheaded but | highly effective leader of the India office. by Abhishek Goel The ee The Experts id you see thereportfrom the Ina joice? "Tm just opening it now Caro line said on the other end ofthe line Stefan Konrad and Caroline Dough erty went way back, They had started at Leman Highlander & Company together more than 20 yearsbefore as fresh I grt erst oh Noy | Stefan was the head ofthe consultancy's | South Asia and Middle East business, and Caroline was its global human resources director. Their ofices at Leman’s New York headquarters werejusta few doors away froin each other | Caroline continued, “Thenumbers | | look good. Three new accounts, including. | NMM Technology —impressive | working his magicas usual “For sure—keep reading,’ Stefan said He waited, and then Caroline's tone changed: “Again?” BES ftps ase ties preset a ‘hiemmas faced by leaders in resi companies and ofer solutions from experts This one is based on the case study “Superstar Leaders" by Abhishek Gool and Weharika Vora {(rdian iesitute of Management, 2007) Unmanageable Star Performer “That's right," he said. “Tumover went up again—fourth quarter in a row. We're hitting 32%, way over the industry average | And those employee survey results are abysmal” “He's never been one to care about the people side of things—much to my cha rin.” Caroline said Stefan had been worried about the Mumbai office for awhile. So fart had ‘grown faster than any of the others; busi Tess was booming. And yet every time he visited, he sensed that people weren't happy. Vijay Kumar, the managing partner in Mumbai, and Aparna Nayak, his second in command, always assured Stefan that things were fine and reminded him of their growth figures. Leman Highlander had aggressively ay eight years earlier to set up jon in Mumbai, He'd been a star at McKinsey, with per May 2013 Har‘credentials and a sharp business sense, ‘Everyone agreed he was the right person tobuild the firm's presence in India, and ‘woof the partners made it their mission {oget him to signi on. Three years later, Vijay had more than proved his worth. The numbers coming out of Mumbai were fantastic. and big clients flocked to him. Companies had deserted McKinsey, Bain, and BCG for Vijay. The partners were thrilled. Only Caroline and Stefan seemed tohaye taken notice of the ongoing per: sonnel troubles. “We need to do something.” Caroline said. “I'm going to be therenext week. Let me see what's going on?” “I guess you should havea conversation with Vijay” “I'm not sure “You. little scared of him? she teased. Stefan laughed. “Maybe, yes," he admitted, “A little” Out of the Question Stefan’s suitcase was open on the bed. "You always amaze me with how little you take**his wife, Clara, said, watching him lay twosuits neatly into the carry-on. He was on the road clase to 200 days of the year, so he had packing down toa science, “Where first this ime?” she asked. “Mumbai. ve got that meeting with Miiay” “Oh, right. What did his assistant sa “apara's not hisassistant, honey. Itold you that.” “From what you said, it sounds like he treats everybody like one” Yes, that may be part of the problem,” Stefan replied. Aparna had been pretty tight-lipped on the phone. She'd said that she and Vijay were concerned about the tumovertoo, but it was typical for the ‘industry ight now, and Stefan shouldn't beovtrly worried. She couldn't tell you what's wrong?" “No, but she said she'd set upa meeting _ with some of the consultants” That had ly been his suggestion, but Aparna Review May 2072 | heed becarefil hes “You p resgibe eta bape it th | -Twoyyearseartier, during one of Stefan el vst to Mumba, et [ks yu oe fd btu ds dali sy oes too difficult to work for Vijay had stormed out of the office and immediately sent a Aedes tl ernie eh Tieronterierrpai nie ara cat here Soares Cog (otal aah do | wisest tep yay India was now the brightest starin the region, and number twoin revenue for Le ‘man Highlander. Noone on the leadesship team wanted the man responsible for that togoanywhere. | *Pius:*stefan continued, “I don't tech, nically have authority over him, because \Wwe'reall equalas partners. 'd need to get approval to take any formal action * “Like fring him?” “That's completely out of the question.” | Not Everyone Is Dissatisfied ‘As Stefan walked into the office building on Nariman Point, his phone rang, Seeing Vijay's number, he took the call. “Twanted to welcome you,” Vijay said “Unfortunately, | won't see you until din- ner tonight. 'llbe with the team at NVM all day.” ‘Stefan couldn't say that he was disappointed “Thear you're checking up on me,” Vijay | said with a chuckle, but there was an edge | tohis voice. | “I'm here for the meeting with Kerimer Engineering tomorrow" Stefan replied “You said havinga non-Indian there would help.” Then, casually, he added, “And yes, I'll talk with your staff today. The usual skip-level.” Vijay was silent. “Youstillthere2” Stefan asked, “Yes, you goahead with the meeting. 1 just got to NM. Tilsee you at dinner” He hhungup before Stefan could say good-bye. | Aparna met Stefan at the elevator. They + stoppedtotalk witha few people in the of- alk Vijay down, but he gaveStefan | | fhee,and tien she led room at the back o the floor “set upa meeting at 3:00." she said Soine of orbest consultants, some new people, and some who havebeen around fora while “1ilove to hear what you think before L meet with them," he said “(think we're doing our best here” ‘Aparna said, “Results are even better than before. and the pipeline is very strong. We're thought of as the premier training round for new consultants in the indus try. Some people complain, yes. But not everyone. Anyway. will send the groupin when i's time." Stefan took out his laptop and looked atthe office floor beyond the large glass window. Everyone seemed busy but relaxed, It was different from the previous times he'd visited, sien ¢2ople had been rushing round, duickinginand out of boisterous mectings in conference rooms, obviously trying toanticipate the boss's ‘movernents, moods, and demands. He realized that he'd never before been in the office when Vijay wasnt there. “He's the Master” Stefan opened the meeting by saying, | “We're concerned at headquarters about | tumover. We can’t run this office without astrong team. Ineed tounderstand what we can do better” ‘When no one responded, he asked ‘Amal, the most junior guy in the room, for his opinion. Amal leaned forward and toid Stefan how happy he and his col- leagues were that he'd asked to see them. But then he looked around and didn’t say anything else. After a very long pause, a senior con- sultantnamed Rehan cleared his throat. He spoke with great deliberation: "We're all dedicated to Leman Highlander, But things have been alittle difficult here” He explained that Vijay had always been. a demanding boss, but Rehan and others hhad expected him to ease up some once the office was established. “Unfortu- nately” he said, “that hasn't happened.anything, t's gotten worse. He seems Impossible to please.” Then several others spoke. At first they were diplomatic, emphasizing how ‘much they loved their jobs and the firm. But then they launched into complaints thatall centered on Vijay: He was never satisfied. No one could workas hardas he did, His creative genius was intimidating People tried tobe like him, but there was only one Vijay.Itfeltas fhe didn’t trust or respect anyone but Apamaand the consul: tants who worked around the clock. “Don't get us wrong—we're learning, tons from him,” said a younger senior consultant. “There's no one in the whole industry who can develop and runa consulting business the way he does. He's The consuitants launched into complaints about Vijay: He was never satisfied. No one could work as hard as he did. His creative genius was intimidating. the master. But 'masking myself whether working for him is costing nse more than gain. Inever see my family anymore, espe- Cally if ry to keep up with his hours. 1'm answering e-mails at four in the moming.” “That's right” said a woman at the back of the room. “No one leaves the office if he's here, because they're afraid of retribu. tion. Ifhe sees you leave ‘early; he's on you thenext day, giving you more and more work todo.” People went on to explain that even the highest achievers felt inadequate next to Vijay, and many had left. Those who stayed wanted tobe part of the success story but were confused about how to contribute, Vijay made ll the decisions ‘As the grievances piled up, Stefan started to sweat. This was werse than he'd thought. He tried to move the conversa- tion ina more constructive direction: “What have you done so far? Has anyone spoken to him?” Everyone looked to Rehan. “Well, several of shave spoken to Aparna, | | | | | | pawn wnrone. Tellus what you'd do Goto hbrong. because she seems tobe close to him,” be said. “But we don't know. Maybe sheis alsoafraid for herjob. She doesn’t want to Upset him. And we don't blame her, He's made comments about how those who complain arejust not up tothe standards ofthe consulting industry” ‘Another woman spoke: "He says, ‘Consulting isall about hard work. First you have toget clients, and then you have togive results! We agree, but we can't be perfectall the time. You know, Stefan, this place is starting to get reputation” ourstrongestconsullants wllremain, and new bloc wll omen, He this thisis just typi pain ofa growing organ tion. twill soon subside “That seems rather optimistic of hin stefan said ‘Aparna shrugged. “You should also know that Vijay very sensitive about it he old Stefan that Vijay ha calle er at 11:00 one night after reading the employee | ‘survey results. The firm required each of- fie to conduct an annual survey, an the | fecaback ha included several negative This was what hehad feared. Notonly | comments about Vijay's management were they losing psople, but those people | style, parma sud that Vijay had gone on werebad-mouthing Leman Highlander, | a tirade about how he wasn’t appreciated imakingit more difficult toecruitreplace- | and there were other fms that would ments. ijy'srepuation had helped | value his talents “Ishetalkng with other firms?” Stefan od “I know he's had offers/* she replied. Stefan pursed hislips. That wasn't | what he wanted to hear. Aftera moment, Aparna spoke: “I know you didn’t ask formy advice, and | this maybe out of ine, but if were you, Iwouldn’tbring this up at dinner tonight. He will not like it. Focus on the client ‘meeting tomorrow. How can [not a mea report with some startling figures. I's my job to get answers and report back tothe leadership team.” “You've got your answers already, attract the best hiresin the past, but now it sounded likea hindrance. Growing Pains? res this? You sent Later that evening Stefan found Aparna in her office. “Was that meeting helpful, Thope?” she asked. He wasn't sure how toanswer “They must've said the usual shewent | though~nght on loweringhervoice."Buthe'sbiliant | Herphone aswellas tough. Andhe'stheheartand | number. soul ofthisplace. Without Vijay, thereis | “Ttlooksttike your cari here,” she sid no Mumbai office” ‘Are youready 1050?" Stefan knew she wasright.Vijayhad | “Actually” Stefan said, “I'm going to builtthe office, and he spent every waking | takes walk first be with the driver ina hour thinkingabouthow tomakeitbetter. | Does Vijay know how unhappy people are?” he asked. “He's seen the employee survey results,” ‘Apama said. “So of course he knows. But he thinks the consultan's nee to grow up and he has a point. I's become a pastime here to complain about him instead of just focusing on the work. He says hat ifwe siveittime, the real complainers wl leave, , and she glanced at the few minutes.” Varevarsiarelel Ce) Stefan say to NDE Ae Coline cits May 2013 Harvard Business Revi 143EXPERIENCE The Experts Respond {shan Raina isthe CEO of OOH Media, a leading outdoor advertising company in India and the chairman of ignites Digital Services, an Indion STEFAN AND Vijay's dinner can play out in ‘one of three ways, The best-case scenario fs that Stefan talks honestly yet carefully with vijay, and vijay gets the message and. decides to stay. That might sound far: fetched, but it's not impossible. Another possibility is that Vijay balks at any bint of criticism and quits, leaving Stefan to quickly map out a plan for retain: ing clients and keeping revenue up. That would be tough, but people often assume that a starlike Vijay is more important than. he really is. And it's not the worst-case scenario, The worst is that Stefan does noth: ing and lets the problem fester. In three or six months the office will be in deeper turmoil; Vijay will be losing customers, not just staff members; and Stefan will have to pick up the pieces. f stefan doesn't talk to Vilay now, he is simply postponing the inevitable Ideally, stefan could talk with Leman, Highlander, and the other senior partners, laying out the above scenarios and build- ing the firm's confidence in his ability to handle the situation and to grow a strong organization with or without Vijay. But he doesn't have time for that before his din WHAT WOULD You DO? Internet marketing solutions provider ner, and to ignore what he's just learned | from the Mumbai portunity lost. Stefan must do his job and who Is great for revenue but bad for your organization? Twice when I've given honest feedback to a star like Vijay, the person has left to start another frm. Fortunately, how: Jam would be an op: | manage vijay Of course, Stefan has to be careful. if ever, in each case | was able to retain my Vijay thinks the firm is going to constrain | company's clients, because | wont to them his growth by putting him on a leash, he | and explained that although the departing will leave. instead of tolling him what he's executive had been the face of h It’s critical that anything Stefan suggests is focused on what Vijay wants—not on what the partners or the complaining consultants expect. | doing wrong, Stefan should appeal to his there were very competent people behind | star's ego, He should start the conversation | him who could continue to do the work, by asking Vijay what his long-term goals | are and what he pictures himself doing in| Ina third case, after tad the candid conversation, the star decided to stay, was able to fix the five years, Once Vijay says that he wants to problem and also keop achieve X, ¥, and 2, Stefan can explain how | the guy. But he did't dt for me or for | he't need to change in order to reach those | anyone else at the company. He did it for goals, It’s critical that anything Stefan sug- | himself gests is focused on what Vijay wants—not ‘on what the partners or the complaining The conversation that Stefan is about to have is like any negotiation: i he's not wil consultants expect. I've been in this situation myself. t hhappens all the time in the advertising industry. What do you do with a highflier | ing to tose, he's not going to win. But i's | a risk worth taking. if someone is likely to ruin your organization, you need to address | the situation immediately SOME ADVICE FROM THE HBR.ORG COMMUNITY STEFAN SHOULD not discuss this issue at dinner; ‘only end poorly and negatively impact the business in the short term. The ~ issue should be addressed back at headquarters, with the senior partners, who can talk to Vijay once they've decided on a course of action. Gopatam Dokka, senior manager, ATT Global Business Services India ‘STEFAN CAN use the dinner to hear Vijay out on his dreams for the company and himself. This will give Vijay confidence that his growth and aspirations matter to Leman High- lander and that the other partners are listening. Then, when the time ‘comes to talk to Vijay, Stefan can link Vijay's ambitions to the need for a healthy and satisfied staff. Karthik Duraisamy, alliance marketing manager, [BM VIJAY HAS the traits of a true nar- cissist and is toxic to the company, He believes that others are there to support him and that their needs are less important than his. 1 would recommend that Stefan not even stay for dinner. Vijay would most likely use the opportunity to build a false, damaging picture that makes others the problem, meaning he does not have to change. Allegra Jordan, managing director, Innovation Abbey's the global manoging par HeR.oRG of nga seas ex STEFAN WASN'T had conversation wth Lemans Thomas Leman about Vijay's future, PIRES ee ther rere towoat can sy at | Sutanowtever nae ee Unless gos backup, he cart | has to tart bung ines aoe ane confront Vijay about his hip | Soult bc iba Teal ity tik lenderip aya at | York, Acro model righ toe prenke but oly ithe can stage a compre Va been in this very situation nindla | hens intervention that persue Uy and elsowher, in my experience tar Consultants don’t suddenly become team builders. t's clear that vijay would rather \eavo than change his behavior, and stefan should expect that oute it he ap: roaches him head-on at dinner. The firm's partners have a decision to make: Can they build on the existing hero: Centered business model, or do they need ‘Something different going forward? | use a framework developed by the comoany Service Performance Insight that describes five stages of growth for any professional services firm: heroic, functional excellence, project excellence, portfolio excellence, and collaborative. The Mumbai office is clearly in the first stage, which is highly effective for a new, small frm. But the high attrition rate makes it potentially unsustainable, To ask Vijay to switch models, and run the risk of losing him, is not a decision ste- fan can make on his own. In fact, thomas VIJAY IS not the problem. He is doing exactly what he is paid to do: bring in clients and revenue. The consultants need to adapt to his behavior. If they cannot handle a difficult boss, how are they going to handie an extremely aggressive or difficult client? Arthur Dent, chief visionary to adapt or ifthe partners can create a | Unless Stefan gets | backup, he can’t confront Vijay about his leadership style as if it | were a deal breaker. team capable of replacing the revenue th: ‘would be lost should Vijay walk. Stefan ‘can't do either of those things without buy in from the other partners. So what should Stefan say to Vijay at dinner? He needs to focus the conversation | on vijay’ goals for the office and how to achieve them. In India there is a strong cul: tural bias toward competing and winning ‘Stefan can appeal to this in Vijay. He can } applaud the growth they've seen so far and then describe the profile of firms that win over time. He might explain that those that reach the highest stage of maturity have lower attrition rates and higher BIOTA and that he's seen other stars ht a wall because they couldn't carry the business beyond a certain revenue point. He can tell Vijay that this is not what the firm wants for him. Instead of calling Vijay out for bad behavior, Stefan can present a challenge, He shouldn't ask Vijay to change, because fhe won't. But he may be able to get Vijay the opportunity to expand ble skills to match the next HF Stefan can't icult message to take 0 HBR Reprint 1305N Reprint case only 81305x {Commentary only f13052 GeO Harvard Business Review singapare sessi NS THE ASIA INNOVATION SERIES Singapore Sessions. What's next? When provocative ideas collide, they create formidable sparks. This is the premise behind Singapore Sessions, a thought leadership forum where experts from diverse back ‘grounds focus on tomorrow's business challenges to answer the question "What's next?” Past webinars include: * Does Asia have the talent to lead innovation in the 21st century? ‘+ How can businesses navigate Asia's increasingly complex supply cchain systems? + How can big data and analytics ‘spur innovation by spotting trends and patterns in the rapidly shiting economies of Asia? ‘To view these Singapore Sessions ‘webinars presented by Harvard Business Review, please visit: www SingaporeSessions.com