In today’s hyper-competitive business world, the pursuit of rapid growth and disruptive innovation often overshadows the challenge of building enduring institutions. While companies like Apple and Amazon exemplify enduring success, others— such as Kodak —have crumbled under the weight of their own obsolescence. So, what distinguishes the timeless titans from those that flame out?
Few leaders have grappled with this challenge as directly as Aditya Ghosh. His journey from spearheading India’s largest airline, IndiGo, to co-founding the upstart Akasa Air offers a unique perspective on the complexities of building and scaling a business while preserving its core values. Ghosh’s insights into the aviation industry, one of the most volatile sectors, provide invaluable lessons for leaders across industries.
Ghosh’s keynote at People Matters techHR India 2024 offered a rare look into how a leader scales a business while preserving core values.
Building lasting success
Ghosh challenged the conventional wisdom surrounding corporate vision and mission statements, asserting, “Vision and mission statements of a company are exactly like New Year’s resolutions.” This provocative statement underscored his pragmatic approach to business building. While many organizations invest heavily in crafting inspiring visions, Ghosh argued that the true test of a company’s resilience lies in its daily execution.
“Building a great organisation is akin to maintaining physical health,” he explained. “It requires consistent effort, discipline, and a focus on fundamentals.” Unlike the fleeting nature of New Year’s resolutions, sustainable success demands ongoing attention and commitment. By prioritizing action over aspiration, organisations can bridge the gap between ambition and achievement.
A singular focus
While ambitious vision statements can inspire, Ghosh argued that true organizational success hinges on a clear, compelling objective. “If you want every employee, from the CEO to the frontline staff, to embody the company’s spirit,” he emphasised, “you must first define a clear and inspiring purpose.”
Ghosh’s experience with Akasa Air exemplifies this principle. By centering the airline’s mission on delivering high-quality service at affordable prices, he created a unifying goal that rallied employees around a shared purpose. This singular focus not only drove operational efficiency but also fostered a culture of innovation as teams sought creative ways to deliver on the core promise.
While identifying a single, overarching objective may seem challenging, Ghosh stressed its importance in providing direction and motivation. By aligning every aspect of the business around this core purpose, organizations can create a powerful sense of unity and focus.
Needs over wants
In an era where customer experience is touted as the ultimate differentiator, Ghosh offers a nuanced perspective. He highlights the critical distinction between what customers want and what they actually need (and are willing to pay for). “Great businesses consistently answer to the needs of the customer,” he stated.
Ghosh illustrated this point with an anecdote about airline amenities: “You will never make a choice of that airline based on whether the flight attendant comes and gives you a blanket or not, because it never happens.” Instead, he advocates for focusing on the core needs that drive customer decisions, a strategy that has helped both IndiGo and Akasa Air succeed in the competitive aviation market.
Agility – today’s competitive edge
Ghosh emphasized the critical role of agility. While the startup world often glorifies the relentless pursuit of growth, he argued that sustainable success requires a more balanced approach. “Agility, not hustle, is the new competitive advantage,” he stated.
Ghosh described agility as the ability to pivot quickly while maintaining a clear strategic direction. “It’s like navigating a battlefield,” he explained. “You must be prepared to adapt your tactics based on changing conditions, but your ultimate goal remains unchanged.” This delicate balance between flexibility and focus is essential for thriving in an unpredictable business environment.
The art of saying ‘No’
One of the most counterintuitive pieces of advice Ghosh offered was the importance of knowing what not to do. “Have a small list of things to do, and have a longer list of things that you will not do,” he advised. This discipline of focus is a hallmark of many enduring institutions, from Warren Buffett’s Berkshire Hathaway to Apple under Steve Jobs’ leadership.
The human element
Ghosh concluded his address by emphasizing the critical role of people in building lasting institutions. While strategy, innovation, and execution are essential, it is the human element that ultimately determines an organization’s success.
“Our goal is far above and beyond our job,” he asserted. “Our job is to encourage and recognize those colleagues around yourself who are going above and beyond their job.” By investing in employee growth and development, leaders create a culture where individuals feel valued, challenged, and empowered.
When employees have the opportunity to pursue their passions and develop their skills, they are more likely to be engaged, motivated, and committed to the organization’s success. Moreover, a focus on personal growth fosters a sense of loyalty and belonging, reducing turnover and enhancing collaboration.
Building for the long haul
By focusing on consistent effort, clear objectives, customer needs, brand consistency, agility, disciplined focus, authentic leadership, and personal growth, Ghosh argues that organizations can build cultures that not only drive short-term success but also create legacies that stand the test of time.
In a business world often obsessed with quarterly results and short-term gains, Ghosh’s perspective is a refreshing reminder of the importance of building for the long haul.
With the right mindset, culture, and focus, it’s possible to build institutions that truly last out time.