The entrepreneurs should focus on building a purpose-led organisation rather than valuations, said N Chandrasekaran, chairman of Tata Sons. He said that purpose gives a path to an organisation, which leads to success and ultimately to valuation goes up. Chandrasekaran spoke at the Ascent Conclave held in Mumbai.
Before looking at the right side or the P&L, one must focus on the left side of the accounting statement. He said that it is the effort to win that matters, rather than just focusing on revenues, and founders have to detest chasing only revenues or operating profits.
Chandrasekaran also talked about the importance of good leadership and said it's about setting a very high aspiration and enrolling people into believing that aspiration or idea. Leadership is also about authenticity. It is about to lead from the front in some situations. The most important thing is the ability to build teams, empower them, give them the space and realise a situation where each of them performs better than what they think they are capable of. He said that building great teams requires a lot of trust and empowerment. It requires openness, heart and mind to take criticism.
In his keynote address, he drew parallels between his favourite hobby of marathon and business leadership, where he compared how the two are similar. He said that it's about fitness first and performance next in both marathon and leadership.
He stated that it is very important to stay the course because there are moments when one goes through self-doubts and that one can't just target growth rates if the organisation is not fit.
Mental health and will power are the key for leaders, according to his session.
He said that the country belongs to the next two-three decades. There are huge opportunities because all the disruptions, including digital, supply chains, energy transitions, or geo politics, are all working in favor of India. We are a nation with tremendous talent. It is fair to say that India is going to have a few decades. If there is a time when people can dream big and have a chance of achieving it, it is one of those moments.