As Mukesh Ambani completed two decades of serving as RIL Chairman, he said Reliance Industries’ story reads like an unputdownable book with never-ending chapters of success.
“We have collectively succeeded in growing Reliance from strength to strength only because each one of us in the Leadership Team has internalised the Founder's Mindset,” RIL Chairman and MD Mukesh Ambani said at the company’s 45th annual general meeting (AGM).
Explaining the Founder's Mindset, he said, it means “working incessantly to preserve and further enrich the Purpose, Philosophy and Passion of Dhirubhai Ambani”. Father of four including Mukesh Ambani and Anil Ambani, Dhirubhai Ambani was an Indian business tycoon who founded Reliance Industries in the 1960s.
According to Mukesh Ambani, the philosophy constitutes 10 tenets of building a unique ‘Leadership Capital’.
First, it's ‘People Capital’. Reliance's greatest strength is its human assets, Ambani said, adding, “The greatest value creators are brains, not machines.” Secondly, he named ‘Technology and Innovation Capital’ as an imperative for survival and disruptive growth.
Thirdly, the billionaire said that Reliance judges its leaders by their expertise to plan, execute, review and improve growing its ‘Capability Capital’, which is followed by rewards and honours for achievers who exceed expectations under its ‘Achievement Capital’.
"Aiming low is not acceptable,” Ambani said.
The fifth tenet emphasises ‘Relationship Capital’. “We fully understand that people are not robots, and money is not the sole motivation that drives them to deliver peak performance,” the RIL Chairman said, agreeing, “Healthy interpersonal relations create happy organisations.”
Bringing in the ‘Trust Capital’, Ambani said Reliance places the highest value on trustworthy people. “There is no better way to earn respect than to be trustworthy.”
“1+1 becomes 11 when people co-operate and teams collaborate,” he added, terming ‘Co-operation Capital’ an integral part of RIL’s standard operating procedure (SOP).
Since the world is increasingly “coming round to realise that powers of the heart are superior to powers of a cold rational mind”, Ambani highlighted the need for compassionate leaders, for compassionate capitalism. It's part of building the ‘Empathy Capital’, the eight tenet. The ninth tenet focuses on ‘Integrity Capital’.
Last, but not the least, under ‘Community Engagement Capital’, Ambani said RIL recognises that serving the community that supports and sustains “us is our Corporate Moral Responsibility, not just a legal Corporate Social Responsibility”.
By following these 10 tenets, Ambani said Reliance has nurtured its unique institutional culture. “It's because of this institutional culture that every business of Reliance has so far been a super-success.”Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.