Professional Documents
Culture Documents
CBR-Leadership-W3-L11 To L15
CBR-Leadership-W3-L11 To L15
CBR-Leadership-W3-L11 To L15
Week 3 – Lecture 11
Technology Leadership
Technology Climate
Crisis Resources
Globalism
Of the five, technology, climate, globalism and resources are factors that are understood and predictable in various
degrees but events of crisis are completely unpredictable and unanticipated. Leadership needs to ensure
sustainability and growth of enterprises leveraging technology and facing the balance four challenges at all times.
Technology as a Growth Enabler
Technology (including science) has been the prime driver of development. Human innovation drives continuous
scientific and technological development. Those who recognize the criticality of technology and deploy it prudently
would benefit while those ignoring the importance of technology could lose out.
Technology
Enhances Consumption by
Improves Productivity of
fuelling demand from well
manufacturing, service and
to do while also meeting
business processes
basic needs
It is easy to see how technology continuously elevates quality of life with better products and services. Not only that,
it improves productivity of processes. It drives demand growth and enables creation of wealth for all. Digitization has
sharpened technology. However, technology can also distort demand, increase inequities and deplete resources.
Consumption as a Boon, and as a Bane
Technological developments have accelerated product developments. Product lifecycles have dramatically shrunk to a
few months, from a few years. “Produce more and sell more” has become the business mantra. The results are:
Adverse Impact
of Technology
While technology is fundamentally for the good, the bad part arises when technology is used indiscriminately for short
run results, with adverse impact on a host of economic, natural, environmental and social resources.
Non-linearity in Product Technologies
Technological developments are both linear and non-linear. The pace of development is both incremental and
exponential. Technology-driven products can create new markets, and even industries. Some examples are:
By the same token, technology-driven products can challenge existing firms and industries which are slow or
reluctant to explore new technologies to update or reinvent themselves.
Non-linearity in Process Technologies
Technology creates not only new products but also changes the way the new products are produced or the way the
new products serve the humanity. Some examples are:
Body scanning Image capture and desk analysis Direct viewing and analysis
Drug delivery Multiple cells and pathways Directed cells and pathways
Technology-driven process and service developments enhance productivity and change the way businesses are
conducted.
Non-linearity in Service Technologies
Technology creates not only new products and processes but also services. Such services, substantially digital driven in
recent times, have threatened established services, and transformed the services.
Book publishing and reading Printed books and Physical stores Digital publishing and e-readers
All of the above services are based on use of electronic devices, network connectivity, cloud and digital services.
Technology Pyramid
There are three aspects of technology – innovation, differentiation, and followership – which constitute a pyramid of
technology as below. Innovators are few, differentiators are some, and followers are many in any industry.
Innovators
Differentiators
Followers
With new products, innovators create new businesses and even industries. Differentiators expand the industry.
Followers take the industry to the masses, literally to the bottom of the social pyramid.
The Three Facets of Innovation
Innovation, as a process, has three important facets; imagination, visualization, and disruption. Though appearing to
be independent, they are interconnected.
Most innovation is
Seeing a space
triggered by
assessment of 1 that others do
nature and life not see
Imagination and Imagination Imagining life
discovery of and living
immense hitherto condition in an
unknown unknown space
possibilities
Visualizing a device or
equipment to convert
Valve to Diode the natural or human
Diode to Chip phenomena
Manual coding to Three Types Re-visualizing
Machine Learning mechanical, electrical,
Mainframe to of Innovation electro-mechanical,
Desktop hydraulic or digital
Desktop to Laptop operations to mimic
Devise Storage to natural phenomena
Cloud Storage
Applying concepts
and technologies Developing reality
native to or from
other industries
3 2 out of abstract
Serious application of
Making breakthrough Transformation Visualization knowledge
and transformative Convergent or
changes to products Divergent thinking
and services
Innovation is also about a facilitative ecosystem that supports generation and acceptance of innovative ideas and
facilitates the means to convert the innovative ideas into actual products or services.
The Three Horizons of Innovation
Established firms tend to work in silos preferring to maximizing efficiency within the operating business construct,
rather than disrupting the hitherto successful business construct through voluntary self-mediated disruptive action.
Disruptive
Innovation
Breakthrough
Innovation
Incremental
Innovation Eliminating existing
Level-up In product anchors by
Scale of Complete completely new ones
Innovation redefinition of Example:
Performance and product through Autonomous Electric
specification convergence or Automobile
improvement divergence
Example: Euro VI Example: Hybrid
Automobile Automobile
Step-up in
Characteristics
Start-up firms, on the other hand, leverage innovation in seemingly peripheral segments (low-end or high-end) with
new products, hoping to eventually overwhelm the mainstream businesses once the products gain acceptance.
The Three Horizons of Imitation
As a high-level philosophy, any synthetic development that mimics nature, however innovative, is also a form of
imitation. Imitation is an integral part of industrial structure and process.
New Salt
Form Drug
Generic
Combination
Drug
Generic
Copy Drug
Creative
Imitation
Improving
Imitation
Replicative Ability to create
Imitation a new sub-
Level-up in segment in a
Notable
Creativity known segment
improvements
Some level of
‘Spec to spec’ A discrete
differentiation,
copying product/brand
within the
Price identity even
imitative
competitiveness within generics
framework
Step-up in
Improvement
Creativity by a few innovators and embracing of such creativity by several imitators is a fundamental requirement
of distributed and equitable socio-economic development.
The Principle of Technological Balance
The Principle of Technological Balance is a principle that balances the three horizons of innovation, the three
horizons of imitation and the three pivot points for their application.
Disruptive
Creative
Innovation
Imitation
Breakthrough Improving
Innovation Imitation
Incremental Replicative
Innovation Imitation
The Fourth Wave of Technology is marked by digital technological developments taking huge strides in artificial
intelligence. Digital technologies transform all products, services and processes.
Expectations from Wave 4 Technologies
Wave 4 Technologies can fundamentally transform the way products are developed, manufactured and sold, how
businesses are run, and how life and environment are protected. Leadership lies in reaching the full potential.
Food Security
Electric vehicles
Renewable energy
Clean Energy
Mobility Security
The Fourth
Wave of
Conserving, Recycling, Technology
Water Health Novel diagnostics, Novel
Regenerating Security Security vaccines, Personal medicine
Business Climate
Security Security
Self-reliance, Business Circular economy, Optimized
continuity, Digital consumption
connectivity
Leaders committed to Wave 4 Technologies are also driven by strong social and environmental purpose as these
technologies have the potential to transform human life and living as illustrated above.
Five Typologies of Innovation
Innovation at product level can be conceptualized to occur in five distinctive manners, with examples as below:
Substitutes synthetic by natural (or Renewable energy sources powering automobiles. Plants
Substitutive vice versa) and food providing medicines. Days powering the nights.
Innovation Dismantles borders between
industries
Combines multiple technologies A futuristic glucose device that may measure glucose just
into a single product based on touch, and also dispense an appropriate dose
Integrative
of insulin (that too with needleless technology), based
Innovation Integrates both fundamental and
on the measurement of glucose level. Similarly, self-
analogue invention technologies learning robotics in engineering and medicine.
The framework of five types of innovation is helpful for leaders in setting innovation goals at product level. 16
Human Expectations and Technological Enhancements
Human Expectations and Technological Enhancements move with leads and lags. At times, technology is ahead of
human expectations, and at other times mankind wants more than what technology can offer. A healthcare example:
Human psychology
and behaviour lead or
lag science and
technology
Leadership has a major responsibility in innovating ahead of human expectations. The reason for start-ups taking
technology leadership lies in their ability to provide innovative technology solutions for problems, known and unknown.
Tata LCV and Total LCV – Leader’s Technology Foresight
The ability to go far beyond prevailing industry structure, technology limitations and regulatory constraints, and lay the
foundations for technology that would provide competitiveness decades later is visionary technological leadership.
Leaders need to imagine and visualize technology to support transformative developments far ahead. In doing so,
leaders will need to cut across immediate hype that envelops new technologies, and root for the transformative core.
Concepts and Designs from the Past – Now Fast Forwarded
It is interesting that several of the technology concepts that are being put into practice as transformative
technologies owe their origins to developments undertaken decades ago, even nearly a century earlier.
The above illustrates that it is not merely product technology but the entire technology ecosystem (for example, in
the case of electric vehicles the battery, electrical, electronics, charging and other technologies) that needs to be
developed for any innovative product to become technologically and commercially successful.
The Making of a Blockbuster Product
Leadership for a product organization has to span the entire product and customer value chain, touch every point and
integrate all of them for holistic impact. The making of a blockbuster product is an example of the leadership challenge.
Effective customer
connectivity
Flawless
performance
Panache for
perfection; from
product to Unmatched
packaging, and to quality
delivery
Reliable Exceptional
service price/value
assurance advantage
No blockbuster product may score 10 over 10 on all the parameters. Each blockbuster has certain core anchors which
vest them with industry-leading status on certain features (As examples, Toyota on performance and quality; Apple on
elegant design and perfect manufacture). Leadership for blockbuster products has to be value-accretive.
The Making of a Blockbuster Service/Consultancy
Leadership for a consulting organization rests on intellectual creativity, customer-centricity and global delivery. This
requires a capability to help companies with constructs that the clients would be unable to imagine or execute.
Thorough Tools of
understanding of technology and
business and process
operations engineering
Effective customer
connectivity; even
with reluctant Contextually
sponsors creative problem
solving
Panache for
perfection; from
problem definition Personal
to solution delivery humility and
integrity
Clear
Reliable
price/value
service
advantage
assurance
Blockbuster consultancy may not score 10 over 10 on all the parameters. Each blockbuster service organization has
certain core anchors which vest them with industry-leading status on certain factors. Leadership should not only
pivot around key strengths but also extend into multiple domains. Leaders need to win over skeptics with results.
Perfect Innovation as an Ultimate Leadership Goal
Perfection
Perfection as End-
Materials Components Sub-systems Systems as the
the goal Product
result
Design Thinking
Innovation is of two types as broadly discussed in the Week 1 lecture: Sustainable Innovation and
Disruptive Innovation. Regardless of the type of innovation, perfect innovation remains a goal
Perfect Innovation represents the epitome of technology leadership – however, is also a continuous
quest. This is because even if innovation happens at every point of a product value chain, innovation
does not stand still
That said, it is feasible to aim at perfection innovation as a time-still concept, focusing on a combination
of precision and innovation in materials, manufacture and delivery
Leader as a Product and Network Optimizer
Leadership for technology does not imply unleashing of more products with shorter product lifecycles. It also requires
providing products with longer relevance periods and hence longer product lifecycles, with lower resource use.
A high-technology corporation also tends to be a globally networked
corporation. Major global corporations concentrate their innovative R&D
and product development in just a few countries (including primarily the
parent country) but spread manufacturing across many more countries
Tomorrow’s (usually countries of large market potential) to serve local or regional
designs today markets. The maps illustrate Apple and Toyota footprints.
Create Value
Features and
Exchange
functionalities
between the
that are long-
Company and
lasting
customers
Less
Products,
Technology More Value
Competing on
Bank that is
Product
far broader
Quality than
than
on Product
commercial
Count
intent The more
precious a
material, the
more intense
its recovery
What is advocated here is the original Steve Jobs philosophy of iPhone – products that are common for all customer
segments, products which are fewer in count but relevant to all customers, and changes that are not resource
profligate. It also implies a global supply chain model that is united by common technological standards.
Leader as a Technology Optimizer
Digital technologies, including artificial intelligence, machine learning, deep learning, augmented reality, virtual reality
and blockchain are versatile. Leadership of technology must direct these technologies to explore the unexplored.
No-loss manufacturing
Material Materials
(Additive manufacturing) of
substitution Machine tool makers, capital companies
components and No-loss
(rare to goods and utilities (metals and
generation and transmission
common) non-metals )
of energy
Leaders need not wait for public policy to direct technologies based on incentives that may be provided by the
governments. Every company has the ability and responsibility to channel technology to enrich its domain.
Leadership and the Principle of Technological Balance
Technology needs to be deployed in such a manner that all sections of the society are well served. In such a
paradigm, innovation and imitation are equally important. Leadership needs to find the right balance. Six principles:
Consumers benefit when a fair and judicious balance of innovation and imitation is offered.
Innovation transforms the way we live. imitation stretches innovation to its limits.
Innovation lays a new development path for the society. Imitation brings development to the
doorsteps of common citizens.
Leaders have to develop an ecosystem wherein both innovation and imitation coexist
symbiotically because that is the way the society gets benefitted the most.
Development is optimized when both innovation and imitation are leveraged to serve the society
The brilliant mind of an artful imitator is no less important to this world than the exceptional mind of a creative
innovator, and vice versa, in a philosophical sense!
Technology Leadership
Technology leadership requires an outstanding level of leadership that maximizes the beneficial aspects of technology
and minimizes any hurtful aspects of technology. It requires a synergy of technological innovation and business acumen.
The leader must deploy technology for optimized, rather than maximized, product flow
(or service flow).
The leader must direct technology for resource optimization and serve all sections
of the society.
The leader must aim for perfect innovation as the epitome of technology
leadership, combining technical and business acumen.
Leadership in technology is a requirement for business competitiveness. Its import is much wider and the requirements
for technology leadership are much deeper. Leadership theory has to accord a prime place for technology.
Leadership Needs to Avoid Inequities of Technology
Technology is a key driver of business competitiveness. In an anxiety to be competitive, there could be incremental
and hasty deployments of technology, leading to product proliferation, and consequent diseconomies of scale.
Leadership needs to come up with solutions for technology that could stay advanced and relevant for a few years so
that technology does not lead to profligacy and depletion of resources in an accelerated and excessive fashion.
Leader as Environment-friendly/User-friendly Developer
The fundamental driver of technology is improvement. Whether it is a thermal power plant or an automobile, the
newer technologies are less pollutant. However, the cumulative impact of rapidly expanding coal production, thermal
power generation and automobile on roads, and HVAC and refrigeration systems led to environmental warming.
Automobile with IC Electric vehicle Non-polluting battery manufacture, recycling and disposal
engine Non-polluting power plants
Digitization of Business 5G Internet connectivity Data-friendly networks
Cloud and App solutions Hack-proof solutions
Body imaging with Real-time body reading Non-radiating, non-interventional scanning
deferred image capture Real-time diagnosis with artificial intelligence (AI)
Automation Robots with AI Image recognizing & multi-faculty robots capable of
human-like thinking and execution
Additive manufacturing Additive manufacturing for Low-waste material manufacturing processes (metal and
for prototyping mass production non-metal materials, bonding agents)
Laptop and smartphone More functionalities in each One universal device platform and one universal operating
as two devices with some divergence system with multiple device sizes
Health tracking Smart wearables of different Smartwatch with smart band, comprising diagnostic smart
types links
Leadership needs to come up with solutions for technology that would stay advanced and relevant for a few years so
that technology does not lead to profligacy and depletion of resources in an accelerated and excessive fashion.
Leadership in Innovation, and Innovation in Leadership
An article by Ron Ritter and Ed Ruggero in McKinsey Quarterly, October 2017 avers that “Leadership in Innovation
needs innovation in leadership”. The article lists four dimensions of such leadership. Source: Claudio Feser, Femanda
Mayol, and Ramesh Srinivasan, Decoding leadership: What really matters,” McKinsey Quarterly, January 2015.
The above 20 leadership traits may be seen as distilling of traits and behavioral anchors described in the five leadership
theories discussed earlier (trait theory, behavioral theory, situational theory, path-goal theory and leader-member
exchange), contemporaneously positioned for a technology-driven world.
Conventional Indian Automobile Industry Paradigm
That said, the industry, and the established model, is likely to be disrupted soon with
advent of electric vehicles. Individual firms and the industry itself may believe that this
could be a substitutional or a supplemental model on similar lines. The transformed
model will not be as simple as that, however. There would be global scale
transformations and local level barriers. The industry and the government must work on
models that will ensure seamless and effective transition.
Electric Vehicle Ecosystem: Networking for Transformation
Automobile &
Component
Firms
Automobile &
Law Makers Component
New/ Industry
Changed
Dealer
Infrastructure
New/ Vehicle
Changed Design and
Component
Regulatory Manufacture
Infrastructure
Bodies;
Governments
Testing
Agencies
Power
Customers Producers/
Distributors
Battery
Battery
Swapping
Materials
Stations
Charging
Stations
Global Academic
Collaborators Institutions
Research
Laboratories
Every industry will have a vast ecosystem that needs to be addressed comprehensively with both technology and
management when the industry is in the throes of transformation.
The New Indian Electric Automobile Industry Paradigm: Transformative Leadership
Financial and Regulatory Environment
Indigenization
Suspension & Electricals & Cooling Indigenous
Braking Electronics System Components
Drive
Interiors (Non- All Other
Transmission Imported
Electronic) Components
and Steering Components
Conventional IC Engine Vehicle Technology
The synergistic interplay between technology and business, strategy and execution, innovation and inventiveness, enterprise and regulation, indigenization and globalization,
structure and process, resourcing and spend, and leadership and management, would determine India’s ability to become a major global player in this transformation.
Thank you!
33
NPTEL COURSE
Week 3 – Lecture 12
Climate Leadership
Crisis Resources
The increase in global temperatures is
directly linked to the increase of GHGs in
the atmosphere
Globalism
Climate change has been on the top of agenda for nations and multilateral agencies. As industrialization is the prime
cause, it behoves the governments, industries and firms to reduce GHG emissions and global warming.
Limiting Temperature Increase to 1.5°C
The Intergovernmental Panel on Climate Change (IPCC) determined that any increase in global temperatures above
1.5°C is wrought with grave consequences for human civilization. Hence the focus on limiting increase to 1.5°C.
Increase by 2°C could cause increased mean temperature in most land and
ocean regions, hot extremes in most inhabited regions, heavy precipitation in
several regions, and drought and precipitation deficits in some regions.
Sustainable development supports, and often enables, the fundamental societal and systems transitions and transformations that help
limit global warming to 1.5°C. Such changes facilitate the pursuit of climate-resilient development pathways that achieve ambitious
mitigation and adaptation in conjunction with poverty eradication and efforts to reduce inequalities.
Countries Compared in GHG
Given below is the comparison of historical and projected GHG emissions of leading nations, including EU 28.
Clearly, India also has a challenge in terms of controlling the GHG emissions that are expected to go up sharply.
China
USA
India
EU 28
Russia
Brazil
Japan
Leadership for positive climate change cannot remain pious and pontificating. It needs to drill deep down to the
technical essentials to initiate the change that is required based on hard science and technology as well as behaviours.
The Leadership Challenge
The emissions that occur due to varied industrial and economic activities are many. Some of the critical emissions are
presented below.
Leadership challenge lies in balancing the economic, industrial and social growth needs in an equitable manner
along with the need to protect the climate. Individual and collective leadership actions hold the key.
Industry Risk Profile
Industry can no longer think that it is insulated from the aspects of climate change. While industry is a contributor to
the global warming problem with a low level of accountability hitherto, the pressures could build up soon.
External
Modified from: How companies can adapt to climate change, A paper by Hauke Engel, Per-Anders Enkvist, and Kimberly Henderson, McKinsey & Company, July 2015
Leadership for halting climate warming cannot be done independent of governmental actions and social norms. A 24x7
work norm has made the world buzz with perpetual activity. Public policy restrictions may be unavoidable.
Fourteen Strategic Industrial Actions
It is possible for leaders to limit global warming increase to 1.5°C through the following fourteen strategic industrial
actions. These are components of strategic and operational industrial, infrastructural and economic management.
Dovetail with
Review HVAC Involve in Drive Green
local emission
Systems Facility Design Mobility
goals
Reduce
Optimize Push Up Own
Greenhouse
Transportation Renewables Accountability
Gases
Industrial and business leaders must proactively act to halt climate warming before global warming becomes a crisis of
great public harm and social setback by incorporating the above as guiding principles of leadership for sustainability.
Dovetail with Emission Goals
It is important for leaders to connect the industrial and business actions with the emission goals. The way this is done
depends on whether the firm runs an industrial complex, office complex or a total township, for example.
Create a climate
Optimize all
action
heat sinks
committee
Zero
Temperature
Increase Goal
Replace or
Shift to modernize all
renewable power
power consuming
units
Make buildings
green
Many of these are seen to be within functional decision making; the leader needs to bring such functional
approaches within the overall positive climate control action, without being seen to be micromanaging.
Optimization in HVAC
Amongst all such technical/functional decisions, Heating, Ventilating and Air Conditioning (HVAC) systems top the
agenda, for leadership attention and self-regulatory action.
Air conditioners have a high impact on the climate, both in the energy and refrigerants they
use — super greenhouse gases called hydrofluorocarbons.
HFCs are short-lived pollutants, but they have an impact on global warming that’s
hundreds to thousands of times more potent than that of carbon dioxide by mass.
Yet as the world gets hotter, air-conditioner demand is growing, with experts projecting
that we will have 4.5 billion units by 2050, up from about 1.2 billion today.
Globally, a phasedown of HFC refrigerants could avoid up to 0.5 degree Celsius of warming by
2100; the Montreal Protocol now requires countries to reduce the use of these chemicals
starting immediately.
It is easy to see how focusing on HVAC systems, leaders can straightaway leave a big impact on the global warming
scenario. As will be seen, HVAC systems are crucial to safety of various products and essentiality of processes.
Climate Foresight in Facility Design
Moderation of GHG from HVAC requires both technical solutions (HFC-free systems) and architectural solutions
(minimizing the need for and maximizing efficiency of HVAC solutions).
Once a facility is established and operated sub-optimally, it starts making a snowballing contribution to global
warming. It is important for leaders to establish climate-friendly assets and operating them efficiently.
Green Mobility
Considering that transportation is the single largest contributor to atmospheric pollution and GHG emissions,
electric vehicles constitute the single most powerful and structured leadership instrument to control GHG.
China
USA
India
EU 28
Russia
Brazil
Japan
Leadership for positive climate change cannot remain pious and pontificating. It needs to drill deep down to the
technical essentials and industrial transformation to drive the required change based on hard science and technology.
Nations Assume Leadership in Green Mobility
Several nations have been taking leadership to encourage electric vehicles. The Table below illustrates. India is still
tentative on electric vehicle transformation. India with its leading position has a great opportunity for leadership.
Country Target
The Government of India did formulate a scheme titled Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India
(FAME India) in February 2016 under the National Electric Mobility Mission Plan 2020. In September 2017, Union Minister for Transport,
Nitin Gadkari said that the industry must switch to an all-electric vehicle fleet by 2030 but the Government itself did not come out with
any strategic policy mandate in that direction. The Government followed up with FAME 2 Scheme in February 2019. These schemes
envisage incentives to manufacturers and buyers of electric vehicles. Proactive industry and Government alignment should help.
Leadership in Green Mobility
Leadership in Green Mobility requires industrial and business leaders as well as public administrators consider creating
an electric vehicle ecosystem, almost from a zero base. Below is a simple ecosystem.
Vehicle
Manufacturers
Investors Dealers
Power Component
Suppliers Manufacturers
Invest Develop
Banks Owners
Transform
Testing Material
Agencies Manufacturers
Financial
Users
Institutions Machine Tool
Manufacturers
The Indian Government and the Indian automobile industry should look at electric transformation as a strategy to gain global leadership.
While a couple of manufacturers have undertaken electric car production, it has been on a low scale and only to government agencies.
India has some of the highest levels of pollution, including carbon dioxide emissions, an aggressive policy on electric vehicles is overdue.
Primary Energy: Consumption by Fuel, 2018 (Million Tonnes of Oil Equivalent)
Leadership for renewable energy is easier said than done. Renewables as of end-2018 contributed only 4%.
Of Which:
Concerted actions could, however, see a progressive increase in the share of renewables, which is a desirable need.
Top Global Emitters of Greenhouse Gas Emissions
The top 7 emitters are responsible for nearly two-thirds of global greenhouse gas emissions. India ranks fourth.
Source: CO2 Highlights (International Energy Agency, 2019), International Non CO2 Projections (Environmental Protection Agency, 2012)
Corporate leadership is not merely about India moving up on the global economic indicators and corporate social responsibility (CSR) is not
merely about spending up to 2 percent of profits on CSR. Both these also should mean reducing GHG emissions from India significantly.
Breakup of GHG Emissions
Leadership for renewable energy is easier said than done. Renewables as of end-2018 contributed only 4%.
India has the potential to play a global leadership role in renewable energy; leaders need to seize this opportunity.
Global Emissions by Economic Sector
All major economic sectors contribute to greenhouse gas emissions in significant measures.
Global greenhouse gas emissions can also be broken down by the
economic activities that lead to their production.
Electricity and Heat Production: (25% of 2010 global greenhouse gas
emissions): The burning of coal, natural gas, and oil for electricity and
heat is the largest single source of global greenhouse gas emissions.
Industry: (21% of 2010 global greenhouse gas emissions): Greenhouse
gas emissions from industry primarily involve fossil fuels burned on site
at facilities for energy. This sector also includes emissions from chemical,
metallurgical, and mineral transformation processes not associated with
energy consumption and emissions from waste management activities.
(Note: Emissions from industrial electricity use are excluded and are
instead covered in the Electricity and Heat Production sector.)
Agriculture, Forestry, and Other Land Use: (24% of 2010 global
greenhouse gas emissions): Greenhouse gas emissions from this sector
come mostly from agriculture (cultivation of crops and livestock) and
deforestation. This estimate does not include the CO2 that ecosystems
remove from the atmosphere by sequestering carbon in biomass, dead
organic matter, and soils, which offset approximately 20% of emissions
from this sector.
Transportation: (14% of 2010 global greenhouse gas emissions):
Greenhouse gas emissions from this sector primarily involve fossil fuels
burned for road, rail, air, and marine transportation. Almost all (95%) of
the world's transportation energy comes from petroleum-based fuels,
largely gasoline and diesel.
Buildings: (6% of 2010 global greenhouse gas emissions): Greenhouse
gas emissions from this sector arise from onsite energy generation and
burning fuels for heat in buildings or cooking in homes. (Note: Emissions
from electricity use in buildings are excluded and are instead covered in
the Electricity and Heat Production sector.)
Other Energy (10% of 2010 global greenhouse gas emissions): This
source of greenhouse gas emissions refers to all emissions from the
Energy sector which are not directly associated with electricity or heat
production, such as fuel extraction, refining, processing, and
Source: IPCC (2014) based on global emissions from 2010. transportation.
The need is evident for leadership in all sectors to down-regulate emissions through specific actions.
Leadership for Renewables
Leadership for renewable energy is not merely for energy companies; every industrial and official establishment can
do its bit to harness solar and wind energy.
Renewables is another area in which top leadership has to establish the technological guidance charter for divisional
executives to channel their R&D and Manufacturing orientations and capabilities.
Overcoming Limitation of Renewals
Despite the essentiality and desirability of renewables, there are certain limitations on renewables, and certain
continued relevancies of the established energy sources. The unique features of renewable and non-renewables are:
Leadership’s challenge lies in understanding the techno-commercial and supply chain dynamics and foster innovation
in such a manner that the cleaner form of energy has higher generation and deployment.
Leading Innovative Solutions – Ownership Dilemma
However appropriate and relevant GHG reduction is, leaderships will be beset with who should have the ultimate
accountability and responsibility (call it “ownership”) for GHG reduction. Many dilemmas arise.
• Facilities and equipment for GHG control are pricey, and divert my
Leaders need to have a broad statement of purpose with regard to climate change to be able to address the
dilemmas of technology, business and investments that arise at senior leadership and management levels.
Behaviour Change as Pivot
Global climate change can be reduced not only by technology but even more so by behaviour. Many of the measures
listed below are behavioural measures that would go a long way in slowing down global warming.
Setting the thermostat just two degrees lower in winter and two degrees higher in summer, for example, would save huge
amounts of carbon dioxide emissions each year per facility
Starting every leadership and town hall meeting with the company’s climate agenda (just as safety and quality are
taken up) would align the organization towards climate change
Encouraging employees to switch to public transportation, carpooling, biking, telecommuting, and other
environmentally-friendly commutes can add up and have tremendous positive effects
Measurement systems for carbon footprint, having incentive schemes for designs with low carbon footprint, carbon
credits in operation, and having environmental monitoring vehicles ensure positive compliance.
Adding climate action as part of learning & development programmes, performance appraisals or balanced scorecard
exercises would be a great way to make positive climate action a part of organizational DNA.
Introducing a company-wide climate action audit as an annual process will underscore the leadership commitment to subject
itself to examination and compliance
Leadership is all about developing an organizational culture that distinguishes and differentiates the company
through certain capabilities and accomplishments that are beyond the ordinary course of business.
Leading by Example – Thermal Power Plant
Coal-fired thermal power plants are the major source of pollutants such as sulfur oxides (SOx), carbon dioxide (CO2),
heavy metals such as mercury, and particulate matter (PM), which includes acids (such as nitrates and sulfates),
organic chemicals, metals, and soil or dust particles. Leadership by thermal power plants serves as a role model.
Selective • A dual-function selective catalytic reduction (SCR) catalyst reduces NOx and oxidizes carbon monoxide
more cost-effectively than the unit’s originally designed control technology. Wet scrubber technology
Catalytic helps achieve reductions in SO2, along with dry flue gas desulfurization systems for controlling acid gases.
Reduction + Other advanced technologies help in controlling emissions of mercury.
• A pilot project, bioenergy carbon capture and storage (BECCS), is designed to show that the proprietary
Carbon solvent developed by C-Capture—part of the chemistry department at the University of Leeds—can be
Capture used to isolate the carbon dioxide from the flue gases released when biomass is used to generate
electricity. The goal is to make Drax, the world’s first negative emissions power station.
• The Allam cycle “uses a high-pressure, highly recuperative, oxyfuel, supercritical CO2 cycle that makes
emission capture a part of the core power generation process, rather than an afterthought. The result is
Allam Cycle high-efficiency power generation that inherently produces a pipeline-quality CO2 byproduct at no
additional cost to the system’s performance.”
Several simpler technology options exist for controlling pollutants, including such things as rebuilding or replacing boiler
feed pumps, steam turbine blade path upgrades, and utilizing industry-best operations and maintenance practices.
Downstream SCR to
Detune low- Reduce LOI [loss on improve boiler Integrate hardware
control Improve ash quality
NOx burners ignition] maintenance and software
NOx emissions
Source: https://www.powermag.com/using-technology-to-tackle-power-plant-emissions/
Leaders need to understand the right combination of technological power, process improvements, data analytics and
behavioural initiatives that will reduce the greenhouse gases in a thermal power plant.
Leading by Example – Commercial Vehicle Manufacture
It is regular knowledge that electric vehicles would work well when considered in the personal transportation
category (two-wheelers and passenger cars). Leadership occurs when contrarian views are taken to extend
electrification to trucks and buses as well aggressively. Leadership by Daimler AG illustrates.
• Ambition: New trucks and buses in the triad markets of Europe, Japan and NAFTA in CO2-neutral driving operation by 2039 (“tank-to-wheel”)
• Battery-electric series-production vehicles by 2022 in all core regions
• Daimler Trucks already a pioneer in electric trucks, Daimler Buses with electric city bus in series-production since 2018
• World premiere of FUSO fuel-cell prototype “Vision F-Cell” at Tokyo Motor Show in Japan – increased activity in hydrogen field
• Hydrogen-based series-production vehicles by the end of the 2020s
• CO2-neutral production plants in Europe by 2022 - all other plants to follow
Martin Daum, Member of the Board of Management of Daimler AG, responsible for Trucks & Buses: “At Daimler Trucks & Buses we are clearly
committed to the goals of the Paris Climate Protection Agreement and thus to the decarbonization of our industry. Having CO2-neutral transport on
the road by 2050 is our ultimate goal. This can only be achieved if competitive conditions for CO2-neutral transport are created for our customers in
terms of costs and infrastructure. Truly CO2-neutral transport only works with battery-electric or hydrogen-based drive.”
Source: https://www.daimler.com/investors/reports-news/financial-news/20191025-co2-neutral-fleet-of-new-vehicles.html
Leading Innovative Solutions – Facility Developers
The building industry now has multiple energy efficiency certifications. The standards help set measurable and
achievable goals, reducing the amount of energy used from 10 percent all the way to nearly 100 percent of typical
building energy use.
Regulatory
Trees for Life
Compliance Site and
Structural
Efficiency
Waste Energy
Reduction Efficiency
Green
Buildings
Water
Maintenance
Efficiency
Efficiency
Materials
Efficiency
Indoor Air
Seismic Safety Quality
Many leaders do not recognize that their decisions on site location and facility design determine the long term carbon
footprint of the company. Green-proactive leaders spend adequate time on these foundational aspects early on.
Leading Innovative Solutions – Carbon Measurement
By assessing how much pollution an organization's actions generate, the leadership can begin to see how minor
policy changes can significantly reduce a company's overall carbon footprint.
Green Public Or
Private Procurement
(GPP)
Technology
Carbon Capture
Product and Process
Management Consumption
GHG Emissions
Strategies
Assessment
Emissions assessment may include not only GHG but also non-carbon pollutants to get a holistic assessment. The former
requires both technical and behavioural modifications while the latter may gain merely from behavioural leadership.
Leading Innovative Solutions – Carbon Capping and Carbon Trading
Some organizations may be subject to carbon caps while some may not even be able to control carbon footprints.
Both have some options to consider.
Regardless of the size of the business, there are several options for leadership to demonstrate commitment to climate
change and take impactful leadership actions with transparency and inclusiveness.
Leadership in Agro-Food Chain
Agriculture along with food processing constitutes over 33 percent of India’s GDP. It is also the sector that is subject
the most to indigence, vagaries of nature, supply and market imperfections, and even exploitations. A solution:
Banks, FIs,
RRBs, SFBs, Metrics
MFIs Prediction Variety Fertility Security Yield
Adequacy Hybrid Suitability Productivity Quality
Farmers
Technology
Consumers Weather Models
Artificial
Biotechnology
Tractors
Sensors
Drones Nutrition
Carbon Farming Biology Food Chain
Intelligence Robots
Leadership for agriculture must bring together multiple technologies under one canopy to deliver maximum value to
the farming community and the broader society.
Leadership in Precision Agriculture
Application of technology for agricultural productivity and security offers immense benefits. The multiple streams of
technology include agricultural technology, robotic technology, device technology and information technology.
Communicators Drones
Decreased use of Reduced impact
GPS IT water, fertilizers, on natural
pesticides ecosystems
Basic
AI
R&D
Safer growing
Device Applied Increased farmer
R&D R&D conditions/ Safer
safety
crops, products
Computers Tractors
Greater Reduced
Robots
efficiencies and environmental and
lower costs/prices ecological impact
The technological intensity of precision agriculture can bring multiple benefits to agricultural sector and social
community. It would lead to more consistent and sustainable economic growth in the overall.
Leading Innovative Solutions – Changing Agro-Food Patterns
A combination of technology and lifestyle modifications can help in reducing GHG emissions from agriculture while
also raising food sufficiency and human nutrition levels simultaneously.
Food is critical for human survival and wellness. Right food in right quantities builds immunity and protects the
human race against ordinary and extraordinary infections. This is reinforced even more in the tough pandemic times.
Global Problems Require Global Coalitions
Climate change is such an immense global problem that it requires coalitions of global stakeholders, from
governments to companies. Seven coalitions are summarized below.
The 2015 Paris Agreement between 196 countries, committed to limit increase in
Agreement global warming to 1.5 degrees C by 2030
A group of 370+ investors with USD 35+ trillion, set up in 2017, working
Climate Action 100+
with companies for controlling significant emissions
EP100 Set up by The Climate Group of the ‘We Mean Business’ group to
double energy productivity, and related goals
Multi-Industry
Apex Coalition
Industry-wise
Cross-Industry Investor-Industry
Firm Level
Coalitions Coalitions
Coalitions
Leadership tasks such as these are complex and easy to get stymied in bureaucratic structures and processes.
Execution at each level as above would serve to reinforce Indian leadership role models for the world stage.
Thank you!
66
NPTEL COURSE
Week 3 – Lecture 13
Resource Leadership
Crisis Resources
Industrial-natural resources include oil
and gas, metal ores, metals, rare earth
materials and minerals
Globalism
Industrial and business leaders can no longer consider the shrinkage of global resource base as a problem for the
future. The reserves, production and consumption factors will need to be considered from different perspectives.
Resource Balance is a Complex Subject - 1
While agro-civilizations grew on the nearness and suitability of natural resources, the industrial-natural resources
began to be exploited in a different patterns. While clustered value chains did develop, industrial-natural resources
began to be exploited by non-proximate companies, providing monetary resources for underdeveloped countries.
World Map of Land Extent World Map of Agri Production World Map of Caloric Supply P.C.
World Map of Iron Ore Production World Map of Steel Production World Map of Steel Consumption
The agricultural land and output may be widely distributed but per capita caloric availability is skewed. Iron ore and
steel production may be aligned but steel consumption is substantially skewed. Development has many facets.
Resource Balance is a Complex Subject - 2
Industrialization necessitated a quest for more evolved inventions which led to a concomitant need for a diverse range
of natural resources. Rare earth materials that are required for smart devices illustrate the new skew. Development
and production of higher technology products began leading to the need for more exotic materials.
India has only 2.5 percent of India has the second largest
India is the second largest
the rare earth materials manufacturing base but
smartphone manufacturer
required for smartphone quite a lagging component
in the world
manufacture base for smartphones
Industrial and business leaders can no longer consider the shrinkage of global resource base as a problem for the
future. The reserves, production and consumption factors will need to be considered from different perspectives.
Industry Transformations
Technology leads to industry transformations. Transformation of internal combustion engine based automobile
industry into electric vehicle industry is a case in point. However, at its extreme it could have multiple repercussions.
Electric
Vehicles
Increase of Higher
Greater power Use of Lighter
generation Electric aluminium,
Materials lower steel
Charging
Every industrial transformation would bring in its wake structural transformations in many hitherto related and
unrelated material industries. Some would be unstructured and pressured trying to meet galloping growth needs.
Impact Analysis on Resources
Given below is a simple matrix to analyze the impact on resources of various activities, recognizing that different parts
of value chain will have different levels of impact on the resources.
Energy
Materials
Land
Water
Air
Importantly, each of the resource factors and each of the user factors stay interlinked invariably. Leaders need to take
a holistic view of resource optimization.
Battery Materials
To support the transformation of internal combustion engine based automobile industry into electric vehicle industry,
a detailed examination of battery development and manufacturing would be in order. Given below is a template.
Nickel
Cobalt
Lithium
Aluminium
Manganese
Copper
Magnesium
Iron
Vanadium
Use and substitution of materials is a complex matter, with several availability, mining, extraction, refining and other
techno-commercial factors being at play. Leadership involves a keen sense of techno-economic appreciation.
Different Materials - 1`
Product design requirements dictate choice of materials. However, each material will entail certain economic
significance as well as carry environmental impact. Given below is a typical illustration in respect of three materials.
Resource leadership must aim at choice of materials that can be environmentally friendly in terms of both extraction
and recycling without focusing only on immediate economic costs or benefits of materials.
Different Materials - 2`
As leaders start examining the material resource implications of product development, some materials (for example,
rare earth elements) pose particularly difficult challenges.
Rare Earth • Used in clean energy and energy • Used in wide range of high-tech
Elements efficiency technologies electronics
• Recycling extremely challenging • Lack of substitutes
Chemically-intensive processing • Increasing global demand, recent
• E-waste supply chain issues
• Price volatility
Phosphorous • Eutrophication • Food security
• Waste (phosphogypsum) and • Supports agricultural production
emissions (fluorine)
• Recyclable (with losses)
Paper • Renewable / recyclable (with losses) • Demand growing esp. in emerging
Carbon sequestration, habitat economies
(forests) Potential source of energy • Wide variety of products
(wood biomass)
• Energy- and water-intensive
production
Source: Material Resources, Productivity and the Environment, OECD, 2010
Leaders must focus on material linkages of product design all the time, and should never leave it to vendor
development as discontinuous engagement with the materials industry.
Systems Thinking on Resources
Leaders must adopt systems thinking as a comprehensive approach to optimizing use of resources in the industry while
serving customers with products and services, stakeholders with economic returns, and society with sustainability.
Waste Material
Disposal or recovery
Systems thinking brings out how every industrial transformation requires in its wake structural transformations in
many related and unrelated material industries, based on innovative science and technology.
Why Natural Resources Efficiency?
Natural resources are fundamental to human life and economic development. They provide essential food products
but also serve industries which develop and produce a host of consumer and industrial products.
Underlying every product value chain are multiple value chains relating to materials. A socially responsible leader has
the accountability to ensure that usage of materials, and the underlying usage of natural resources, occurs responsibly.
Material Consumption Has Reached Alarming Proportions
The amount of materials extracted from natural resources and consumed worldwide has shown an exponential growth
since the 1980s. It is expected to reach 100 billion metric tonnes (Gt) by 2030.
Materials extracted
from natural
resources and
consumed worldwide
Some Consumption
46 kg of
per person per day in
statistics materials a developed country
Doubled since 1980
72 Gt by 2010
5 kg of of construction and
18 kg industrial minerals
metals
100 Gt by 2030
Countries which have understood the importance began generating more economic value from materials. By 2015, OECD
countries generated 50% more economic value from materials used, compared to 1900s and 30% more than in 2000.
Policy Actions
The increase in economic value of material usage arises from three types of targeted policy actions.
More
• Decrease material Output
Absolute consumption
Decoupling
• Increase economic
Less
growth
Input
• Well-functioning
Specific waste management
Accountability
• Extended producer
responsibility
Reduce Reuse
Resource • Well-developed 3R
Efficiency
• Value extraction
Recycle
Some countries succeed in demonstrating the above relationships by greater offshoring and outsourcing. As India
attracts greater attention as a manufacturing hub, there is a greater need to focus on material efficiency as a key
driver of such increased economic activity.
Primary Attention on Secondary Raw Materials
Secondary raw materials are those that are either available in the industrial economy unused or re-extracted from
products that are no longer used. New technologies or removal of constraints can help revitalize “urban mines”.
Products Strategy
Smart devices Extract metals and rare earth materials
Use recyclable materials in products and packaging
Automobile components Replace metal cutting, metal casting, metal forming and metal joining by
additive manufacturing
Use of plastics Eliminate use in all packaging materials
Replace plastics by biodegradable materials
Bulk drugs Reduce purification steps by initial molecular efficiency
Reuse purified solvents
Replace batch processing by continuous processing with AI and sensors
Batteries Replace rare earth materials by common metals
A recirculating economy will be the way to go for firms seeking to assume leadership in materials sustainability.
Global Growth Imperatives
Global population is projected to grow by 25% by 2050 from the current levels. To meet the growth needs, especially
of emerging and underdeveloped countries, the global economy is expected to quadruple during the same period.
Increase –
2019 2050
Parameter 2050 over
Estimated Projected
2019
Global
Population 7.6 9.5 1.25 times
(billion)
Global
Economy 90 360 4 times
(USD trillion)
Global reserves of materials will be under severe pressure even as extraction and conversion of materials into
products and the use as well as discarding of materials and products will lead to significant impact on global
planetary environment.
OECD Books on Green Growth
Organisation of Economic Cooperation and Development (OECD) has published several works on materials domain.
Those with respect and passion for materials leadership will benefit from these books. This discussion contains many
inputs from the OECD works.
These books provide valuable insights into product-material linkages, material extraction, and material usage as
well as the overall material resource availability levels.
Distribution of Natural Resources is Geographically Determined
Many of the naturally resources are unevenly distributed across the globe. The geographic determination of the natural
resources, coupled with the fact that production is mobile across the world, makes for complex paradigms.
Over 75% of the world’s Nearly 95% of the reserves Extraction and refining
Around 50% of global rare
phosphate rock reserves of the platinum group technologies determine
earth elements are found
are found in Morocco and metals are found in South the efficiency of material
in China.
the Western Sahara. Africa. sustainability.
India's arable land area of 159.7 million hectares (394.6 million acres) is the second largest in the world, after the
United States. Its gross irrigated crop area of 82.6 million hectares (215.6 million acres) is the largest in the world.
India also ranks second worldwide in farm outputs. Around 24% of India’s land is forest area.
India's major mineral resources include Coal (4th largest reserves in the world), Iron ore, Manganese ore (7th largest
reserve in the world as in 2013), Mica, Bauxite (5th largest reserve in the world), Chromite, Natural gas, Diamonds,
Limestone and Thorium. India’s oil reserves meet 25% of the country’s demand.
India can assume leadership in resource sustainability by focusing on preserving natural resources and revitalizing the
exploited land and forest resources.
Economy-wide Material Balance and Flow Scheme
Extraction and conversion of resources as well as utilization and discarding of products within production and
consumption frameworks, domestic and larger international, is depicted below.
Rest of the world environment and economy
Domestic
Recycle Re-use
Used Domestic outputs to Products
materials Extraction – Used nature -
Materials Substitute
Re-
manufacture
Pollutants,
Waste
Unused Materials
materials
and consumption processes
Leadership needs to have an appreciation of the total materials cycle to contribute to the global ecosystem beyond
firm-level domestic consumption of materials and turnout of products for domestic and export needs.
India’s Water Stress
India accounts for 18% of the world population and about 4% of the world’s water resources. Vast area of India is under
tropical climate which is conducive throughout the year for agriculture due to favourable warm and sunny conditions
provided perennial water supply is available to cater to the high rate of evapotranspiration from the cultivated land.
Usage Pattern
Irrigation 543 (78.2) 561 (71.6) 628 (64.5) India has
many rivers
The acute dependence of rivers and surface water as well as groundwater replenishment on monsoons is a major risk factor for
India. Capturing of river water through dams, inter-linking of river water systems and judicious use of water are called for.
Flows of Materials through the Commercial Cycle
A product industry may, on the face of it, consider the material value chain as the subject matter of the material
industry. However, the cost and price structure of a product industry is determined by the material industry majorly.
Reduce
Resource Final
Processing Manufacture Use
Extraction Disposal
Universal electrification is required to eliminate automobile pollution and protect environment. The electric vehicle industry requires electric
battery as the key enabler. Electric battery, in turn, requires a new generation of materials, essentially rare earths whose supply is controlled.
The electric vehicle industry needs to delve into the basic material industry to get battery solutions that would enable universal electrification.
Phosphorous, Agriculture and Life
Phosphorous is one of the three micronutrients essential for plant growth. It is also fundamental to sustaining human
life. As a component of every living cell, phosphorous plays a vital role in the physiological and biochemical processes of
Plants, animals and humans. Although it is quite abundant, its concentration in soil and rocks is very small.
Around 90% of phosphorous is used for food. Around 80% is used for fertilizers. It also has use in
industrial products.
Most countries are completely dependent on imports from six countries which have
phosphate reserves
Industrial production of phosphorous has also to be done efficiently and with the least possible
use of chemicals. Ultimately, biotechnological processes for bio-fertilizers have to be innovated.
The case of phosphorous and agriculture indicates how the decades of movement of local production and consumption
of food to highly distanced production and consumption can impact a vital micronutrient of food chain and human life.
Rare Earths, Barely Understood
Rare earth elements have occupied the centre-stage of ongoing revolution in consumer electronics and the much
sought-after electric vehicle revolution, among others. The essentiality of rare earths for these is a major risk factor.
Rare earth Elements (REEs) are a group of 17 chemically similar metallic elements in the lanthanides series
China has 50% of global REE reserves, but controls almost 100% of REE production; China is also a global leader in
REE processing technology
Cannot be easily They themselves are Products without RREs Critical importance to From smart devices to
Cannot be easily
substituted by other substitutes for more need complex and costly several strategic and electric vehicles and
extracted and refined
compounds toxic metals redesign transforming industries from motors to turbines
RREs are characterized by almost Zero recycling; If at all, magnets and batteries offer some recycling possibility
Behind the glamour and glitz of futuristic electronic and electric products, considered a panacea for green future, lies an RRE
material industry that is supply-controlled and characterized by chemically toxic and environmentally polluting processes.
Leadership for Rare Earth Elements (RREs)
Leadership for RREs requires a technological and business appreciation from earth to element, and design to delivery of
not merely the futuristic end-products but the entire spectrum of key metals (cobalt, lithium etc.,) and RREs.
Product strategy is critical to corporate strategy. Materials strategy is key to product strategy. Leaders should look
beyond procurement or supply chain as being reflective of materials strategy. The technical and leadership challenges
for sustainable management for the complete hierarchy of materials need to be appreciated and resolved.
Sustainable Materials Management (SMM)
Sustainable Materials Management (SMM) is a comprehensive policy that aims at preservation of natural capital while
supporting economic development and social equity, with a range of policy instruments and multi-stakeholder approach.
Increase resource productivity
Reduce material throughputs
Informing and educating members of the Reuse/recycle materials
society on responsible materials management Preserve Attempt regeneration
and making them partners in information flow Natural Objective:
and ideation and feedback mechanisms Capital Minimize resource depletion
Minimize environmental damage
Objective:
Create an overwhelming ownership and
favorable bias in the society in favour of
responsible material production, conversion
Ensure sustainability and safety
and consumption
all through the material, product
Safe and and recycling value chain
Sustainable Sustainable Objective:
Social
Engagement
Materials Materials, Maximize positive (minimize
Management Products, negative) environmental,
Processes economic and social outcomes at
every stage of lifecycle
Sustainable materials management is a framework of holistic and unrelenting actions that aim at preserving natural
capital through sustainable materials management approach. Preservation and productivity along with policy and
society are the four pillars of a sustainable material management framework.
Green Chemistry
Chemistry has been the foundation of material sciences. While chemicals and chemistry brought a wonderful series of
products, the toxicity on the environment also increased. Green chemistry is an essential remedial strategy.
“Green chemistry is a pre-emptive strategy that reduces the use of toxic substances before they
contaminate the environment and bodies. It is a marked departure from the past where the society
managed industrial and municipal wastes by disposal or incineration. Green chemistry seeks to
dramatically reduce the toxicity of chemicals in the first place, rather than merely manage their
toxic waste after use and disposal” (California Green Chemistry Initiative, 2009)
Multi-
Standards,
Use of non-toxic stakeholder
Green design testing
starting inputs,
processes in procedures and
materials and regulatory and
chemical testing agencies
intermediates compliance
processes and for global green
for developing programmes,
products chemistry
final products and
certifications
collaborations
While green chemistry may have a prime and visible place in pharmaceutical, chemical and food chain industries, the
range of everyday consumer and industrial products that can benefit from green chemistry touches every part of
human life.
SMM Policy Instruments
Sustainable Materials Management requires policy instruments that direct business, commercial and administrative
actions in a manner that materials cycles are made technologically productive and environmentally friendly.
Extended Materials Value Chain
Public policy instruments have in the past helped industry and society by phasing out harmful chemicals and compounds while
industrial actions improved processes and materials. Collaboration between public policy and business policy is necessary.
The Promise of Additive Manufacturing
Spare Parts
Lighter
Micro Parts Parts
This represents the
Indian automobile weight of machined
industry produced 3 Aerospace parts in the aggregate,
million cars, 1 million with the gross weight of
utility vehicles, 0.9 Complex
Stem Cells un-machined parts
Consumer Parts
million commercial Defense being 14 million tonnes.
Goods
vehicles, 1 million The loss in metal
three wheelers and 23 removal of the order of
million two wheelers in 3 million tonnes,
2017-18 (totaling 29 Additive therefore accounts for
million automobiles of Manufacturing Multi- Rs 135 billion, annually.
Human Material This is accompanied by
all kinds). Based on Organic
certain assumptions on Automotive Parts enormous operating
Substitutes Medical
curb weights of the costs in running
major types of machining centers,
vehicles, the total iron scrap removal, coolants,
cutting and forming
and steel consumption Construction
Energy tools, transport of
by the Indian Rotors,
Implants, materials and so on.
automobile industry is Stators, Etc.
Prosthetics Additive manufacturing
over 11 million tonnes, has the potential to
annually save costs of this huge
Models, magnitude.
Rapid
Molds,
Prototypes
Dyes, Sets
What is characterized as value addition in automobile manufacturing and other component plants is, in fact, value erosion. If only
there is a universal methodology to produce a part without loss of any material, the savings would be immense. That is where
additive manufacturing comes up as an exciting new frontier of automobile manufacture in the digital age.
Apple Technology - Environment Policy
Apple Inc, the global leader in smart devices has made environmental responsibility, a major component of its
sustainable materials management framework. A few quotes from Apple leaders follow:
“People said you couldn’t use recycled rare earth materials – our new iPhones
prove you can.”
Reuse Recycle
“Our charge is to do what Apple does with every innovation which is to do things
that have never been done before and then use in scale in the marketplace and
relationships with suppliers to bring it forward for the world. We are innovating Recovery
down to the details.” – Lisa Jackson, VP of Environment, Policy and Social
Environments
Apple’s new product innovations will avoid mining more than 280,000 metric
tonnes of aluminium-bearing bauxite and more than 34,000 tonnes of tin ore
over the next year, according to the company.
Business leaders have a great responsibility to weave in environmental responsibility as an integral part of their
technology and growth strategies. As Apple demonstrates, such an approach works as a few more examples show.
Technology Can Be Environment-Sensitive
Recovery of costly and environmentally-scarce metals used in smart devices and electric vehicles is essential to
bring to fruition the full benefits of these new-technology connectivity and mobility options.
New Apple iPhones 11, 11 Pro and 11 Pro Max demonstrate that
new technologies can be protective of environment
Apart from choice of appropriate materials, strategies for recovery, recycling and reuse of materials need to be
incorporated from the first design stage itself. In fact, that is the foundation of a green circular economy.
Leadership Role
The typical industrial organization and its leadership has a great role to play in nurturing resource sustainability. This
requires overturning the conventional incremental ways of developing science and technology with only business
implications in mind. This requires the leaders to think beyond business and profits and innovate for the planet.
The CEO who has the strategic and operational responsibility for
the firm, and the Board of Directors, should emerge as the
primal drivers of sustainability approaches
Sustainability Reporting
The Senior Leadership Sustainability must be
The thinkers and the must be a part of the
Team (SLT) or the CXO incorporated as an
executors on the annual shareholder
team should be important cultural
ground must be trained reporting. Investing
accountable for anchor of the
to base their decisions community must make
integrating organization, much the
on their contributions their preference and
sustainability into their same way as quality
to the green agenda of support for companies
functional or business safety and ethics are
the company. with sustainability
leadership approaches. considered.
agenda well known.
The ultimate objective of businesses and societies, duly supported by the governments and markets, should be to
ensure growth and prosperity through resource-protective circular economy than resource-profligate consumption
economy.
Circular Economy
A circular economy is an economic system aimed at eliminating waste and the moderated use of resources. It creates a
close-loop system, minimizing (i) the use of resource inputs and (ii) the creation of waste, pollution and carbon emissions.
Make
Self-sufficient Rural
Village
Nanotechnology
Regenerate Use
Hogenakkal
Waterfalls
Solar Farms
Recycle Reuse
Remake
The ultimate challenge for policy makers and business leaders lies in creating a circular economy that does not compromise
the quality of life in any manner but at the same time ensures sustainable growth and preserves natural capital.
Thank you!
99
NPTEL COURSE
Week 4 – Lecture 14
Global Leadership
Globalism
On the other hand, technologies, financial
resources and means of production are
concentrated in certain developed
counties.
In this paradigm of uneven distribution of factor inputs, production outputs and consumption markets, globalization
is an essential part of global economy. If at all, globalization will be based less only on cost arbitrage and more on
logical flow of materials and products with high quality standards, and appropriate risk mitigating methodologies.
Over-simplification
Until a few years ago, global leadership has been seen as an extension of leadership with stronger emphasis on team
motivation because of the global leaders’ requirements to lead people of diverse nationalities. This and other myths:
Basing parts of value chain in a foreign country makes the firm global
Certain observations that are illustratively drawn from global research studies reflect the heavy reliance on soft-skill
theory of global leadership, without recognizing the structural and economic drivers of globalization.
Generic Global leadership Skills Important but not Sufficient
Harvard Business Review identified top leadership competencies based on a survey of 195 global leaders in 15 countries
over 30 global organizations. It short-listed 10 top requirements based on a set of 74 generic leadership competencies.
Source: Sunnie Giles. The Most Important Leadership Competencies, According to Leaders Around the World, Harvard Business Review, March 15, 2016
These ten competencies are further organized into five buckets based on proximate nature of certain factors. The
focus of the respondents is as much on developing leaders as on contributing individually as leaders.
Global Generic leadership Skills Grouped
The earlier cited global leadership competencies are brought together in five key themes as follows. All the five reflect the
softer sides of leadership, essentially dealing with people relationships and individual development (more like LMX theory!).
Source: Sunnie Giles. The Most Important Leadership Competencies, According to Leaders Around the World, Harvard Business Review, March 15, 2016
While global leadership is challenging, given the multitude of diverse factors and spread of teams, and elevated risks,
the above five themes, though very helpful and necessary, do not describe global leadership in its totality.
Activity Based Global Leadership Approach
Spencer-Oatey Helen, a researcher on global leadership identifies ten things global leaders do as follows. She also cautions
that ‘national difference’ alone does not constitute leadership. The activities identified by her are:
SN Global leaders…
1 Work with colleagues from other countries
2 Interact with external clients from other countries
3 Interact with internal clients from other countries
4 May need to speak in a language other than their mother tongue at work
5 Supervise employees who are of different nationalities
6 Develop a strategic business plan on a worldwide basis for their unit
7 Manage a budget on a worldwide basis for their unit
8 Negotiate in other countries or with people from other countries
9 Manage foreign suppliers or vendors
10 Manage risk on a worldwide basis for their unit
Source: Spencer-Oatey, Helen (2020) Global Leadership: Key Concepts and Frameworks, in E.Jordans, B. Ng’weno and H. Spencer-Oatey, Developing
Global Leaders: Insights from African Case Studies, Palgrave. ttps://warwick.ac.uk/fac/cross_fac/globalpeople2/companies/gpatwork/globalleadership/
While global leaders may be doing activities such as the above, even collectively the suggested 10 activities do not
constitute global leadership. It is far more than regular leadership competencies or cross-border activities.
Global Industry Types
Globally organized industries display multiple features when assessed in terms of key factors that dominate the industry
structure. No industry is completely global or narrowly regional in the current times.
The above listing, classified by McKinsey Global Institute, is only indicative but reflects the string of factors that
influence the establishment, growth and transformation of firms and industries involved. Globalization is a multi-
factorial challenge and opportunity, and so is global leadership.
Globalization is Driven by Six Economic Factors
A quest for access to various factors of socio-economic growth has been a prime driving force for countries seeking
globalization. Globalization has been an evolved form of international trade, except that the commodity to commodity or
commodity to cash exchanges got substituted by multiple factorial combinations, making globalization very complex.
Companies enter into cross-border
Access to technical collaborations to enable a
Technologies strong product-market platform
In this paradigm of uneven distribution of economic factors across the globe covering production and consumption,
globalization is an essential part of global economy. Enabling access is one of the policy instruments the governments do
have to promote mutual exchanges between nations – for example, opening up of markets for investments.
Globalization Has Non-Economic Factors Too
Beyond production and consumption factors, there have been (and will continue to be) several other factors influencing
globalization. These are not necessarily economic factors. In fact, Pankaj Ghemawat’s CAGE framework considers some of these.
A broader Proximate-Distance Framework explains the concept further.
The six economic factors considered earlier (technologies, natural resources, finance, markets, labor and factories)
and these six non-economic factors (ideological, governmental, political, geographic, cultural and social) constitute a
complex paradigm of globalization. Which of these act as enablers and which as disruptors is not easily understood.
What Constitutes Global Leadership
Against the backdrop of the twelve factors defining globalization individually and collectively, global leadership may be
defined as leadership that helps firms achieve or respond to globalization, dealing with global corporations and agencies.
Technology Pragmatic
Savvy
Value Resource
Additive Sensitive
Business Socio-Cultural
Relational
Compliant
Acumen Acumen
People Financially
Oriented Agile
Customer
Apolitical
Driven
Global leadership requires not only a set of generic industry- and firm- level leadership skills but more importantly a
whole set of ten very important globally relevant leadership attributes as above. The expectations on a truly effective
global leader are indeed very high although the leader may fulfill some through his or her leadership team.
Global Leadership – Being Technology Savvy
Being technology savvy is one of the important requirements for a leader to establish and lead a globally competitive and
globally sustainable firm. Technology provides the foundation for global leadership. The case of NVIDIA illustrates.
While video games drove growth relentlessly, Jensen Huang began investing
billions of dollars in R&D for high-performance computer chips.
Jensen Huang was voted to the top spot in HBR’s list of best-performing CEOs in
2019, not only for financial performance but also for corporate responsibility.
Jensen Huang’s leadership trajectory brings forth the whole set of twelve very important globally relevant leadership
attributes, led by technological foresight. The truly effective global leader is also a technology leader.
Global Leadership – Lessons from Global Technology Leaders
NVIDIA’s example illustrates that global dominance in high-end products and services arises from leadership that recognizes
technology as a growth driver. Several global firms owe their ascendance to similar emphasis on technology.
Identify
Technology-
Business Nexus
Identify the
Invest in
Next Technology
Technology for
and Business
Technology Mega Trends
Mega Trends
+
Business
Invest in Collaborate
Manufacturing upstream and
Infrastructure downstream
Global leadership requires fundamental innovations that not only meet the needs of the emerging horizon but also
create completely new horizons. Google’s parent Alphabet, Amazon’s Blue Origin and Tesla’s SpaceX reflect similar
pursuit of technological and business mega trends.
Global Leadership – Being Resource Sensitive
GE is a leader in industrial products globally. GE’s leadership took the lead a few years ago to begin embedding the concepts
of circular economy not only in its operations but also how its equipment can be operated with sustainability by its users.
Source: https://www.ge.com/digital/blog/industry-40-changing-world-could-circular-economy-save-it
The above graphic demonstrates how hardware and software can be combined in engineering industry to support
sustainable materials management throughout the product lifecycle, from design to final disposal.
Global Leadership – Lessons from Global Resource Leaders
Apple has set up for itself a comprehensive resource-sensitive agenda which can serve as a role model for any firm
developing, manufacturing and marketing consumer and industrial products.
Transition to recycled or renewable materials in Apple
Apple Environmental Strategy products and maximize
material efficiency, product longevity, and recovery
Smarter
Create a comprehensive Chemistry Reduce energy use
inventory of chemicals Mapping and Energy
Engagement Efficiency at corporate and
used by suppliers to
supplier facilities
make Apple products
Assessment
Assess and manage chemicals and Innovation Transition to safer chemistries
for risks to human health and Management through chemical innovations,
the environment beyond what is required
Source: https://www.apple.com/environment/pdf/Apple_Environmental_Responsibility_Report_2019.pdf
The company began publishing ‘Environmental Responsibility Report’ from 2019 giving product-wise the
environmental responsibility performance. The Report provides specific metrics of performance and future targets.
Global Leadership – Being Financially Agile and Fit
Ranking of global companies (Forbes or Fortune) lead to different interpretations on the financial criteria to rank global
corporations; typically different firms rank higher on different criteria. Even the Top 3 vary in terms of constitution.
Jeff
Bezos Ben van
Beurden
Source: https://www.gfmag.com/global-data/economic-data/largest-companies
The CEOs who led the market capitalization rankings have been in HBR rankings of the Best CEOs in 2018 and 2019.
Providing financial fitness and agility to the global corporations is a big task of global leaders.
Global Leadership – Lessons from Global Financial Leaders
Financial agility is a characteristic that defines global leadership because of the multiple jurisdictions the global organization
operates with cross-movement of materials, products, financial resources in an environment of volatile exchange rates.
• Risk management, including cross-border
regulatory compliance
• Currency expression and hedging for
Financial international transactions
• Strengthening finance talent Resilience • System efficiency integrating diverse countries
with digital, business and and work practices
analytics edge
• Fusing rigorous transaction
accounting with development
finance
• Deep knowledge of global • Integrating financial and non-
financial markets financial data
Global • Deploying advanced data
Agile Analytical
Talent Finance Intelligence
analytics
• Harnessing digital innovation
Leadership for capital productivity and
efficiency
Global financial leadership requires global leaders who possess a wide spectrum of new-generation deep-finance skills.
Being financially agile while being financially fit is a paramount consideration.
Global Leadership – Being Customer-Centric Leaders
Customer-centric leaders develop models which appeal to customers globally, enabling them build their firms into global
corporations. This is a concept that is much broader than fulfilling the demand requirements of customers. It involves
understanding the unknown, unexpressed and/or unresolved issues of customers and providing novel solutions for them.
“People don’t
know what they
want until you
show it to
them.”
Steve Jobs
N R Narayana Murthy
Global leaders such as Steve Jobs at Apple, Satya Nadella at Microsoft and N R Narayana Murthy at Infosys made
their companies more global by adopting customer-centric product and service models.
Global Leadership – Lessons from Customer-Centric Leaders
Customer-centric leaders have multiple ways in which they develop unique solutions for customers; they are highly
imaginative (as Steve Jobs was), and are not constrained by the legacy (as Satya Nadella has not been) and made life easier,
simpler and more productive or the customers. The model of customer-centricity can be further expressed.
Experiencing
customer’s Life
From mimicking the nature to synthesizing novel, customer-centricity offers a whole spectrum of solutions. The more
universal the solution is, the more global the sponsoring company would become.
Global Leadership – Being People Oriented
The Business Roundtable issued a statement on August 19, 2019, “the purpose of a corporation,” arguing that
companies should no longer advance only the interests of shareholders. Instead, the group said, they must also invest
in their employees, protect the environment and deal fairly and ethically with their suppliers.
Chief executives who are members of the Business Roundtable, include, left to right, front row: Julie Sweet of Accenture North America, Brian Moynihan of Bank of America, Tim
Cook of Apple, Robert F. Smith of Vista Equity Partners of Austin. Back row: Jeff Bezos of Amazon, Mary Barra of General Motors and Larry Fink of BlackRock.
Source: https://www.nytimes.com/2019/08/19/business/business-roundtable-ceos-corporations.html
Global corporations which emphasize innovation and markets are crucially dependent on people to reach their global scale
and scope. This statement reflects the engagement of global leaders with employees to press on with global aspirations.
Global Leadership – Lessons from People Oriented Leaders
People oriented corporations aim at making the people self-reliant and self-assured. People oriented leaders have a sharper
appreciation of what needs to be done for security, learning, and skill-development of the employees.
• Supporting communities
• Focused development of STEM where employees live
competencies in students Encouraging Critical Building Communities • Creating a positive community
• Encouraging critical thinking
• Driving innovation through
Skills in Students of Employee Habitats ecosystem
• Supporting broader economic
STEM and critical skills development
Source: https://opportunity.businessroundtable.org/
Global corporations aim at developing the employee to the fullest extent so that the companies can serve customers
better, generate wealth and share prosperity internally and externally.
Global Leadership – Being Value Accretive
Companies become global by not only international trade and overseas joint ventures/subsidiaries but also by mergers and
acquisitions. Many global leaders build scale and scope both organically and inorganically. The litmus test is whether such
initiatives are value accretive or value dilutive. This is particularly relevant for mergers and acquisitions (M&A).
The strategic synergy came because each company independently recognized that it had the permission to expand what it was offering
to its core customers and that the capabilities to deliver on this potential resided in the other company.
Deciding to do an M&A deal for global growth is only one aspect of global leader’s responsibility. The real value
accretion comes with the choice of an M&A target with the right strategic fit and deriving product-market synergies.
Global Leadership – Lessons from Value-Accretive Leaders
Value accretion is more than EPS (earnings per share) accretion. A study of successful and not-so-successful (and even
the many failed) mergers and acquisitions points to certain core principles for value-accretive global leadership.
M&A must provide complementarity (product, market, talent) and also gain from mutual leveraging
M&A must provide scalability in size and expandability in scope to create new growth horizons
Financial superstructure of M&A must rest on strong strategic and operational foundations
The acquiring company must preserve and grow the value of the acquired company, rather than lose
the assets (including people assets) in the name of cost savings
Supplement with organic capabilities to manage the exponential growth that M&A can provide
Companies such as IBM, Cisco, Pfizer and Gilead, regardless of the domain and prior core strengths added great value
by a series of acquisitions, particularly in their transformative periods. IT and pharmaceuticals emerge as industries
whose structural factors offer a great play for value-accretive global leadership, organic and inorganic.
Global Leadership – Being Pragmatic
Pragmatism is defined as the approach of evaluating anything based on practical realities and conducting oneself
accordingly. Pragmatism is a good leadership factor but becomes a greater virtue in the global leadership context.
Pragmatism in strategy and execution involves reappraising these vital components of growth based on practical
realities and without getting burdened by dogmas and constraints of the past.
Global Leadership – Lessons from Pragmatic Leaders
Pragmatic leaders have a seamless way of bridging the past, present and future. They also have a knack of overcoming
the vicissitudes of global operations, with adaptive leadership without compromise to core purpose and values.
Several Japanese companies in India exhibited remarkable patience and understanding to develop businesses in
India, meeting the above criteria. Global leaders at helm in those countries made the difference.
Global Leadership – Being Compliant
Global compliance requires a leadership that ensures the quality of a global ethics and compliance programme, appropriate
organizational culture, corporate citizenship and responsibility, robust governance, and clean reputation. Tata Steel and
Wipro are two Indian companies that find a place in Ethisphere’s ranking of the World’s Most Ethical Companies.
Industrial Manufacturing Steel Manufacturing Ethisphere’s proprietary Ethics Quotient®, the World’s Most
Ethical Companies assessment process, includes more than
200 questions on culture, environmental and social
practices, ethics and compliance activities, governance,
diversity and initiatives to support a strong value chain.
“Leading CEOs and organizations continue to prove our long-held hypothesis that conducting ethical business is the
key to maximizing profits,” explained Ethisphere CEO, Timothy Erblich. Ethisphere’s annual practice of tracking how
the stock prices of publicly traded honorees compare to the Large Cap Index found that listed 2020 World’s Most
Ethical Companies outperformed the large cap sector over five years by 13.5 percent.
Global Leadership – Lessons from Compliant Companies
Highest standards in ethics and compliance management represents an ultimate benchmark for global leadership, that
cannot be easily attained. Yet, Tata Steel featured in the rankings for the ninth time, underlining ‘Ethical Synergy’
Sustainability Green
Leadership Leadership
Risk
Management
Entry of a mining corporation into the list seconds the above. “Operating with ethics and integrity is at the heart of Fresnillo plc
purpose: ‘To contribute to the wellbeing of people through the sustainable mining of silver and gold,’ which is why we are proud to
be named for the first time as one of the 2020 World’s Most Ethical Companies,” said Fresnillo CEO, Octavio Alvídrez.
Global Leadership – Being Apolitical
Globalization cannot happen without being present in multiple countries which have multiple political systems. The
bigger the corporation, the greater the likelihood of interface between the corporation and the governments. A Thesis:
Global corporations control rather than compete in markets. Their control of their markets is
salient to how they express their economic interests, as opposed to having these constrained or
dictated by market forces. This is a key reason why they should be viewed, first and foremost, as
political actors. Their home states and regions are the geographical source of their political
power, just as their market control is its economic source. This suggests three key implications.
Source: http://www.internationalaffairs.org.au/australianoutlook/the-political-power-of-global-corporations/
The thesis of the book “The Political Power of Global Corporations” as above is that it is important to re-embody
them as such to understand their power. John Mikler, the author states “it is also important to re-territorialise them
as national in their identities and regional in their operations, as opposed to global in their interests.”
Global Leadership – Lessons from Apolitical Corporation
The thesis of corporate political power expressed by John Mikler (captured in the previous slide) is so powerful that
global leadership has a challenging responsibility to ensure that global corporations do not politically control markets.
Equidistance: Ability to be
unbiased and remain unattached
with any political thought or
Apolitical control of market factors
Equiponderant Equidistance
State
Equipoised: Ability to be open to
all relevant ideas irrespective of the
origins
It would be appropriate for corporations to limit themselves to open, transparent funding of political institutions (if
they must) through legal instruments such as electoral bonds.
Global Leadership – Being a Socio-Cultural Corporation
Global corporations may legally be in different national jurisdictions but they are parts of different societies and diverse
cultures. Social behaviors, linguistic and non-linguistic communication and cultural approaches will radically vary. Hindustan
Unilever represents a shining example of a multinational corporation becoming a part of Indian socio-cultural phenomenon.
Local
Local Supply
Local Talent Marketing
Chain
Mix
Hindustan Unilever is a perfect example of a global corporation understanding the indigenous socio-cultural factors
not merely at a national level but in terms of every state and every region, segmented from rural and urban
perspectives too. From the early 1950s itself, the company became an Indian corporate citizen.
Global Leadership – Lessons from a Socio-Cultural Corporation
Socio-cultural factors include a host of community factors as well – the ties between rural and urban areas, the family
systems, the educational background, the level of general discipline, attention to detail, and others.
Social •Standards
Regional •Empowered
Mores •Expectations •Autonomy
•Accountability
•Aligned
Global Hybrid
Work Cultural
Ethos Adopt Adapt Ties Global
Standards
Admire
From a workforce-leadership perspective and a product-market framework, the global corporation needs to imbibe the
socio-cultural elements of the host nation or region in each case. Regional leadership autonomy and global-regional
connectivity and communication are fundamental enablers of a socio-culturally optimized global corporations.
Global Leadership – Globally Networked Corporation
The ultimate evolution of global leadership lies in the creation of a sustainable globally networked corporation that
combines the best of parent country’s standards and expectations and the host countries’ creativity and aspirations.
Specialized
Design Clusters
Diffused
Ethics and
Manufacturing
Compliance
Facilities
Global Local
Hybrid
Sustainable Networked
Green Growth Supply Chains
Cross-Cultural
Talent Base
A globally networked corporation needs to cover the six economic aspects of Technology, Resources, Capital, Markets,
People and Value and four relational aspects of pragmatic, compliant, apolitical and socio-cultural behavior. The
responsibility for global leadership lies in sustaining a global competitive advantage for the firm as well as the nations.
Thank you!
132
NPTEL COURSE
Week 4 – Lecture 15
Crisis Leadership
Crisis Resources
Floods Terrorist Actions
Covid-19, a global pandemic, has caused huge human suffering, major economic loss and future uncertainty. It forced
governments to impose long lockdowns. It is a crisis of disastrous proportions, and like a condition of Force Majeure.
There Have Been Several Natural Calamities Over the Years
Natural calamities are, by contrast localized, but hit the impacted regions with great ferocity. Some of these, such as
cyclones and tornados, are seasonal occurrences but become extraordinary because of the severity in certain years.
Virtually every country is affected by natural disasters at some points of time or the other, disrupting social and
economic activities. Some tend to be far more devastating than the others.
With Industrialization, Man-made Disasters Also Began to Occur
Industrial calamities have begun dotting the global industrial landscape for a variety of reasons, from technological
factors to behavioral competency issues. Managerial and operational shortsightedness also contributes.
Industrial accidents destroy valuable property and cause hazards to workforce and neighboring communities. They
also disrupt supply chains and impact other firms and industries as well. They cause harm to reputation of firms.
Covid-19, the Latest and the Worst in Health Emergencies
From times immemorial, the world was impacted by public health emergencies, which caused scores of deaths and
lots of economic disruptions. Some of the more recent ones of the last 100 years:
Industrial disasters take clock back by a few years for the impacted firms. Apart from loss of property and life, serious
accidents cause reputation loss. At times, nations also lose out due to restructuring of supply lines to other nations.
Impacts of Natural Disasters
Natural disasters impact vulnerable areas, for example seismic zones and flood/hurricane prone zones, but industrial
areas may also be affected whether they are in vulnerable or non-vulnerable areas.
Loss of farm and industrial production, break of food and consumption chains, markets, incomes and profits
Disruption of supply chain and similar impacts on other firms and consumption value chains
Decline in gross agricultural output, gross domestic output and real economy
Natural disasters have a much wider impact than industrial disasters, covering a very wide spectrum of life and work
in agricultural, industrial and social habitats. Natural disasters could be seasonal and repetitive too.
Impacts of Pandemics
Unlike natural and industrial disasters, pandemics do not dislocate or destroy physical assets. But they mortally attack
or significantly impair the most important resource – the human resource. It is the worst damage that can happen.
Infectious diseases can spread very fast debilitating communities and nations
New viruses and microbes and their mutations do not have treatment
As seen from the current and past experiences, lockdowns are necessary to stop the spread
Many companies become insolvent, tax revenues plummet, banks saddled with NPAs
National and global economies and stock markets in turmoil; real recovery seen months ahead
While the World has overcome many virus attacks, none has been so unconquerable as Covid-19. While some repurposed
drugs may provide partial relief based on trials underway, fast-track development of a specific vaccine is the need of the hour.
Leadership Perspectives for Natural Disasters
Natural disasters demonstrate the power and fury of nature, and the helplessness of the human race when nature
decides to strike. Leadership for coping with natural disasters has to be diligent, committed and bold.
• Technology
• On-ground support
leadership Demonstrating Leveraging • Technology
• Role modelling Leadership Technology devices
leadership Reducing
Increasing
climate
sustainability
warming
Disaster
• Creating the funds • Development
Disaster Funds Response
• Growing the funds • Deployment
Forces
The propensity for natural disasters reduces when overexploitation of the planetary resources is stopped, and global warming
is reduced and resource sustainability is enhanced.
Leadership Essentials for Natural Disasters
Leadership for Natural disasters requires a chain of activities in the five key areas of safe habitats, technology
development, disaster response forces, disaster funds and leadership role models.
• Many habitats historically evolved in geographically inhospitable areas; require a global directory
Safe • While the history cannot be done, phased strengthening of the habitats is required
Habitats
• Disaster Response Forces (DRFs) with the rigour and skillsets of armed forces need to be developed
Disaster • DRFs should be placed permanently, and closer to all areas prone to natural disasters
Response
Forces
• Disaster funds should be developed through continuous public and private contributions, with tax breaks
Disaster • Like pension funds, disaster funds must be allowed to invest and grow their corpuses, with paybacks
Funds
• Leaders at all levels must make the reinforcements and deployments feasible and perpetual
Leadership • Leaders must provide personal leadership when communities are hit by national disasters
Role
Models
Regardless of the reinforcement exercises that may be carried out, forecasting the natural disasters, equipping for
them (financially, materially and socially) and facing them comprehensively when they occur requires agile leadership.
Leadership Perspectives for Industrial Disasters
Accidents that involve fires and explosions, release of poisonous chemicals and nuclear reactions could be debilitating
for firms and supply chains. Environment, Safety and Health are closely related to each other in industrial management.
The five-pronged approach needs to be a part of regular and intensive management of organizations. It also requires
continuous self-management by individuals to pay heed to the imperatives of industrial safety (which includes offices too).
Leadership Essentials for Industrial Disasters
Leadership for industrial disasters requires a proactive approach towards environment, health and safety. Leaders
must walk the talk on planning for and executing disaster preparedness and disaster mitigation.
• Many industries involve hazardous activities, which need to be ring-fenced from the safer operations
Safe Industries • There must be continuous vigil on the relatively unsafe operations, and during the relatively unsafe times
• Technology must be deployed to minimize, if not eliminate, all hazardous and unsafe activities
Technology • Technology-based devices, from sensors to robots, need to be developed and deployed continuously
Development
• Environment, Health and Safety (EHS) teams with technical and behavioral capabilities are needed
EHS Teams • EHS Teams must focus on capturing the bottom of the pyramid incidents behaviourally to stop escalation
• By constant behavioural interactions and continuous technological improvements, EHS should be elevated
Continuous • Like Quality Circles and Kaizen, EHS Circles should be established to bring about total involvement
Improvements
• Leaders at all levels must make the EHS reinforcements and deployments a part of all management
Leadership Role • Leaders must provide personal leadership in propagating and institutionalizing the culture of EHS
Models
Eliminating industrial accidents is a task of combining sensor-based error-proofing and detection, technology-driven safe
equipment processes, and above all, behavioural modifications. Leadership must focus on getting the mindsets right.
Leadership Perspectives for Pandemics
Pandemics have deep catastrophic and debilitating effects, besides immediate adverse health implications. They set
social and economic life back by years, and in many instances caused major and prolonged recessionary episodes.
Healthcare Specialists
• Fast-forwarded
• Continuous enhancement
vaccine Drug and
development Healthcare of healthcare facilities
• Novel drugs and Vaccine • Expansion of critical care
Capacity Build
drug cocktails Development accessories and medical
• Repurposed drugs oxygen
Any health emergency, even if it is seemingly geographic or national, has the grave potential to spin out of control as a global
pandemic given the extent of globalization with national and international travel of people and cargo.
Leadership Essentials for Pandemics
Leadership for pandemics requires a unwavering approach of “health and people first”. Leaders at governmental, non-
governmental, industrial (especially pharmaceutical), and multilateral body level need to be globally collaborative.
• Openness to acknowledge and timely share information with World Health Organization critical
Diagnostic • Ability to diagnose precisely and rapidly is the next fundamental step
Agility
• Each virus or microbe being unique, understanding the pathology of disease is the most important step
Treatment • Understanding how different drugs and vaccines work need collaboration between doctors and scientists
Development
• Healthcare capacity, especially beds, and diagnostic, isolation and intensive care, must be stepped up
Healthcare • Dedicated hospitals must be set up, even as pharmaceutical and medical accessory capacity built up
capacity
• Governmental leaders must make healthcare a topmost priority, with investments as percentage of GDP
Leadership • Pharmaceutical leaders must keep devoting high investments on their own R&D and university R&D
Role Models
Leadership for pandemics lies in preventing pandemics to the best extent possible, and preparing for any pandemic in
anticipation with build-up of capacity in anticipation, without commercial parameters dictating investment decisions.
The Biggest and the Most Unexpected Pandemic Non-linearity…
148
Natural and Industrial Disasters and Pandemics Are Non-linear
Non-linearity means unpredictability and lack of proportionality. Some natural events can be predictable but most would be
unpredictable. Industrial disasters are not designed to happen but do happen unexpectedly. Pandemics vary in force and
spread; with no microbe or virus being like no other in intensity or severity. Transmission from animals to humans complicates.
The Covid-19 pandemic crisis raises many questions for leadership that is faced with completely unusual and
unexpected situations. Does leadership have many shades of understanding and developing responses when faced
with unprecedented crises? What leadership lessons can be learnt?
Human Ingenuity and Resilience Began Finding Primary Solutions…
The benefits of BCG Vaccine Over 100 new vaccine As against 5 to 7 years taken to
under evaluation candidates under develop a new vaccine, the
development; A few race is on to develop a new
PABs under development for candidates under advanced Covid-19 vaccine within 12 to
antibody development clinical evaluation 18 months
Note: All medicines, even after approval by regulators, need to be taken under strict medical supervision 150
Human Ingenuity and Resilience Found Supportive Solutions Too…
152
A Positive Response from the Governments and Public in India
Despite the lockdown, essential activities maintained; other industrial sectors restarted based on
Government guidelines
The huge population base of 1.3 billion acting together, by and large, to comply with new social
requirements
Doctors, nurses, healthcare professionals, sanitary workers, law and order personnel and
essential activity personnel working tirelessly
Rural sector and farming community rising up to the occasion with their characteristic
dedication
New patterns of life and work: social distancing, protective masks, sanitization, work from home,
online education, home-deliveries, low-density transportation etc,
The importance of national and state governments in recognizing pandemic emergency, and guiding
disaster response widely understood
153
From a Leadership and Management Perspective…
154
Grasping the Impact of Unanticipated Situations Quickly
One of the biggest leadership challenges is to anticipate situations. Even a bigger challenge for leaders is to grasp the
essentials of an unanticipated situation when it arises, and come up with quick-silver responses that are effective.
A closed approach to new problems would push the firm and the stakeholders into deep crisis, as the Covid-19 crisis
has demonstrated. How the industry responded through Work from Home approach is one example.
Importance of Mindsets and Behaviours
Leadership openness is a function of mindsets and behaviours of not only the leader but also his or her immediate
team members who are charged with the responsibility of compiling and interpreting information.
Open Open
Mindsets Behaviour
Having an open mindset helps the leader recognize and absorb new unforeseen developments and encourage the team to
provide constructive ideas. Open behaviour that reflects a transparent, committed mindset builds credibility. These
capabilities help the leader gain acceptance and handle pandemics which impact human life for several months and years.
Importance of Staying True
Compulsions keep changing in emergencies and disaster situations. One of the most telling examples of this situation is the
debate regarding “lives versus livelihoods” that dominates the Covid related lockdown situation. It is important for leaders
to be truthful about goals, strategies, actions, outcomes and data for stakeholders to feel safe in leaders’ hands.
What
truthfulness
means
Providing the experience of
moving to a more secure Dealing with the
Securing Empathy situation and leading
platform of life and work
from the front
Ingenuity
Coming up with workable
out-of-the-box solutions in
the face of adversity
Staying true to the developing situation and being truthful about the leadership actions that will be taken helps build
an environment of inclusiveness and confidence in the larger ecosystem of stakeholders.
Importance of Balancing Business Efficiency with Social Security
A company may run based on just-in-time supply chain (and that too as long as someone else is creating the buffer)
but a nation will be at great risk without buffers, safety stocks and pipeline inventories being in place at all times.
Stocks
While products have shelf life and an unlimited level of inventory cannot be economically correct, it is important for firms and
governments to have safety stock modelling, from the basic materials to ultimate end-product consumption points.
Emergencies can be handled only with safety stocks as emergencies never come preannounced. It is data-leadership challenge.
Importance of Investments for Fundamental Research
Research is a scientific activity that discovers, invents, and creates products for the future. However, not every product
becomes commercially relevant at a point of time. However, no product should be discarded and no activity needs to
be stopped in the name of holding back R&D expenditure for short-term control of costs. Benefits are immense.
• Especially relevant in pharma
• Anti-malarial, anti-viral, anti-hepatitis, immuno-
Products can be modulator, anti-inflammatory, lupus and other
• Only the CEO can repurposed drugs, are being repurposed for Covid-19
take ownership for
fundamental R&D,
given the
uncertainty of
outcomes and long • Commercial
gestation times Ensure continued acceptance should
• The CEO must Leadership must not be the litmus
fundamental
demonstrate be tech-committed test for innovation
discovery • Potential
technology
leadership by using improvement in
technology along quality of life must
with strategy be the test
If there is one discipline that requires the CEO to own with passion, it is R&D. It is only fundamental R&D and applied
technology that can help firms and nations be emergency-ready by reviving and adapting continuous R&D.
Mindsets and Behaviours - Gas Leak from a Chemical Plant
Safety is a matter of mindset and behavior. Appreciating the need for the best of technology and even if it is available,
deploying it properly is a matter of mindset and behavior. The following case study (based on reports) illustrates.
Human instincts, combined with management training, tend to cause leaders take the wrong actions in a crisis
Downplaying the threat and withholding bad news Communicating with transparency
Doubling down to explain/justify actions Taking responsibility and focusing on solving problems
Source: Michaela J. Kerrissey and Amy C. Edmondson. What Good Leadership Looks Like During This Pandemic, Harvard Business Review, April 13, 2020
Kerrissey and Edmondson summarize tellingly what prevents leaders from responding to the crises effectively and proactively,
and also outlines what they would need to do in a crisis to be effective in the resolution of the crisis.
Leadership Model for Effectively Dealing with Pandemics
Michaela J. Kerrissey and Amy C. Edmondson suggest a five point model for leaders to effectively lead teams, societies
and nations in dealing with emergencies of uncertain nature and long-lasting volatility
Source: Michaela J. Kerrissey and Amy C. Edmondson. What Good Leadership Looks Like During This Pandemic, Harvard Business Review, April 13, 2020
Michaela and Edmondson advise that leadership in an uncertain, fast-moving crisis means making oneself available to
feel what it is like to be in another’s shoes — to lead with empathy.
Towards a “New Normal”
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Humane Leadership in Crisis
Leadership to overcome crisis cannot happen overnight. It requires robust leadership capabilities that are embedded
in the leader over time. In addition, certain leadership qualities, that lead by example, become very important.
Empathy
Positivity Inclusivity
Reinforcing
Factors
Clarity Agility
Leadership response to crisis has to keep the human and social aspects on the top. The ability to save both lives and
livelihoods calls upon the best of leadership ability in a leader.
Thank you!
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