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Communicating a holistic perspective to the world: Kautilya on leadership

Neera Jain and Shoma Mukherji
Management Development Institute, Gurgaon, India
Abstract
Purpose The purpose of this paper is to cull out leadership lessons from one of Indias oldest books on statecraft and economics The Arthashastra by Kautilya and present an Indian model of leadership which may be used by scholars and practitioners for leadership development in modern global context. Design/methodology/approach An analysis of Kautilyas teachings is done based on English translation of his original works by two eminent scholars. A model of leadership is derived on the basis of Kautilyas writings. Findings Kautilya presents a holistic perspective as he synthesizes the Eastern and Western approaches on leadership. His skill-based and strategic approach gets support and direction from his value-based, ethical considerations. Also, an in depth study of his writings shows that he was a precursor to a few leadership theories developed in the Western world in modern times. Originality/value Scholars have studied The Arthashastra as a treatise on economics, politics, diplomacy and statecraft. Lessons have also been drawn on a few aspects of management and leadership. There is no comprehensive commentary available on his views on leadership. In this paper, an attempt is made to develop a leadership model which integrates the Eastern and the Western approaches on leadership and can be used for leadership development in modern times. Keywords Strategic leadership, Leadership, Philosopy, India Paper type Research paper

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Received June 2008 Revised October 2008 Accepted November 2008

Introduction Leadership has long been a topic of interest in academic discourse. There is an abundance of literature and scholarly writing on leadership, as understanding of the dimensions of leadership has always gured in humankinds quest for knowledge. Scholarly studies on leadership, the world over, reect an awareness and understanding of leadership research conducted in America and other Western countries. Cultural values and nuances differ from country to country and leadership styles evolve out of a countrys culture. When the question arises in scholarly fora on what is unique about Indian leadership, there are no clear answers. Indigenous non-Western leadership models are few and include Sinhas (1980) nurturant task oriented model and Chakrabortys (1995) wisdom leadership in India. Although we have excellent business schools in India along with skilled human talent, little attempt has been made to evolve indigenous management or leadership styles based on our own cultural ethos. Indian academicians and management practioners have generally found it convenient to import emerging management/leadership theories from the west and apply them to the Indian context rather than provide a theoretical context based on rich classical Indian literary tradition (Balasubramanian, 2007).

Leadership & Organization Development Journal Vol. 30 No. 5, 2009 pp. 435-454 q Emerald Group Publishing Limited 0143-7739 DOI 10.1108/01437730910968705

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This paper is an attempt to cull out leadership lessons from one of Indias oldest books on statecraft and economics The Arthashastra by Kautilya[1] and present an Indian model of leadership which is relevant even today. It is amazing to note that as far back as 300 BC, a scholar in India could hold such a worldview on leadership which is still very contemporary. Sinha (1999) talks about the Eastern and the Western approaches on leadership training and development. Interestingly, what Kautilya has offered to the world is a holistic approach wherein he synthesizes the Eastern and the Western dichotomies on leadership training development. While talking of an ideal leader, he talks of self-purication which in its essence is very Indian but he also emphasizes the development of the skills which gives his concept of leadership a Western orientation. Thus, in the exposition of his theory of leadership, we nd Kautilya extremely practical when he talks of leader as a strategist or as a policy maker. However, his realistic approach gets support and direction from his value-based, ethical considerations. It would not be an exaggeration to say that Kautilya was a precursor to some of the leadership theories developed in the Western world in modern times. The objective of this paper is to bring out Kautilyas lessons on leadership as developed explicitly in The Arthashastra and as presented sparingly in Nitishastra[2] and present an Indian model of leadership which can be used for leadership development in modern global context. Scholars have studied The Arthashastra from different points of view. It has been studied in detail as a historical document which throws light on state and society in India around 300 BC. It can also be considered as a classic example of statecraft and politics (Modelski, 1964; Rangarajan, 1992; Witzel, 2006). Scholars have also drawn lessons and guidelines from Kautilya on a few aspects of management and leadership (Kumar and Rao, 1996; Pillai, 2005; Muniappan, 2008). In this paper, however, we would consider his concept of leadership as envisaged in his Magnum Opus The Arthashastra and other books and develop a model for leadership training in modern business context. The Arthashastra contains 15 books. The rst chapter of Book 1 is a detailed table of contents and in one verse states that the text has 150 chapters, and 6,000 verses. It must be noted that The Arthashastra speaks of a leader in the sense of a political leader, as the head of the state. A careful analysis of the contents of the table shows that while talking about the ideal king and his duties and while presenting detailed discussion of how a king should conduct himself, how he should ensure law and order in the society, how he should protect himself and the kingdom from the enemies and how he should look after his people, Kautilya is in fact explaining his concept of leadership. Further, his suggestions to the king on strategic alliances and networking, on crisis management and on communication strategies show that Kautilya is actually elaborating his detailed and comprehensive view of an effective leader. These lessons can be used to develop leadership in todays business context. The Arthashastra no doubt, is a treatise on the art of government, administration, politics, and on economy (Sihag, 2007; Chakraborty and Chakraborty, 2007; Jha and Jha, 1998; Gowen, 1929) but, above all, it is a treatise on the art and science of leadership intended to teach a king how to be a leader in the true sense of the word. The paper starts with a brief discussion on how Kautilyas theory of leadership is in fact based on his own personal real life experience. Kautilyas views on leadership as found in his writings are discussed in detail. A few similarities with modern day

leadership theories are also presented. Finally, a model based on Kautilyas perspective on leadership is developed. Kautilyas theory of leadership: developed in the crucible of his life One of the greatest gures of wisdom and knowledge in the Indian history, Vishnugupta Chanakya Kautilya, lived during the period 350-275 BC. The legends associated with Kautilya are very interesting and provide a testimony of his greatness. He was a professor at the University of Takshila (located in present day Pakistan) and was an expert in commerce, warfare, economics, etc. Takshila, Takshashila or Taxila was one of the topmost centers of education at that time in India (Mookerji, 1951). The age of entering the university was 16. The branches of studies most sought after ranged from law, medicine, warfare, and other indigenous forms of learning. The four Hindu scriptures (the Vedas), archery, hunting, elephant-lore and 18 arts were taught. The Vedas considered the toughest scriptures to comprehend, were completely studied and memorized by Kautilya in his infancy. He was also attracted to studies in politics, religion and economics. During this time, thousands of refugees poured into Taxila because of the invasion by the Greek armies of Alexander. These impoverished people were not productive for the state having come to Taxila not in search of knowledge or jobs. Even essential commodities were beyond their reach. A stretch of land outside Taxila was allotted for the refugees, who were allowed to enter Taxila after proving their identity with the sentry. The incident was just a precursor to a series of events which reverberated across India as a result of the attacks of Alexander. Salukes, General of Alexanders army (Havell, 1918; Raychaudhuri, 1923) was set to attack the weakened republics of India. Rulers of the neighboring countries were looking for the slightest pretext to annex the prosperous regions of the country. The ruler of Patliputra was squeezing the common man of his wealth in order to enrich his own exchequer. Kautilya could foresee his country clutched in the chains of slavery and defeated because of internal squabbles and differences. He left Taxila for Patliputra and joined the kings court there. Patliputra, a city established on the southern bank of the River Ganges was advanced industrially, producing essential commodities and luxurious goods for the rich. The well known Chinese traveler Fahian, who visited the city in 399 BC, described it as a prosperous city endowed with rich natural resources (Basham, 1959). It was virtually the city of fortunes as it recognized and rewarded true talent and was known for respecting knowledgeable people and scholars. Dhanananda, the ruler of Patliputra, was however, unscrupulous, cruel by nature and always busy gathering money without thinking about consequences. There was public outrage on the taxes which were collected on unwanted things. The main aim of collecting taxes was to serve the selsh interests of the king. There were taxes on hides, on wood and even on stone (Basham, 1959). There are different stories (Rangarajan, 1992) about the mode of Kautilyas humiliation in the hands of the Nanda kings. One version talks about the kings aversion to his looks. Kautilya did not believe in sycophancy which also enraged the king. Thrown out of the court, he vowed to dethrone the king. Popular lore attributes the founding of the Mauryan Empire to Kautilyas desire for revenge. However, a great scholar and visionary like Kautilya could not have been moved by thoughts of personal revenge alone. He had a much larger design in his mind, of creating a great empire which would be secure and where administration would go on smoothly, bringing happiness and

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prosperity to the people. Kautilya envisioned India as a nation which would place itself as the forerunner politically, economically and socially (Rangarajan, 1992; Uz Zaman, 2006). The great visionary, Kautilya created the vision statement which the oppressed subjects of Patliputra could relate with Dethrone the corrupt Nanda kings. Had he drawn a picture of a united Indian empire stretching across borders, it would have been difcult for the common man to understand and remain focused. Kautilya was able to transform his dream of building a unied empire under Chandragupta because he was able to communicate his dream and enumerate succinctly, the manner of doing the same. Kautilya and Chandragupta worked in tandem to destroy the corrupt and unscrupulous rule of the Nandas. A commonly known tale is that Kautilya, determined to crush the Nandas, wandered disguised as an ascetic, looking for a suitable person, who would help him in his design. One day, Kautilya came across Chandragupta, on the streets of Patliputra and was impressed by his intellect and wisdom. Chandragupta was shouting against injustice and corrupt practices of the kings and people in general. Kautilya saw in him the potential to become a leader, took him under his tutelage and trained him to bear the burden of kingly responsibilities in the future. Another commonly known tale is that when the humiliated Kautilya was walking away from the court of the Nandas, he hurt his foot on the kusa grass. People let the grass grow as it was extremely difcult to uproot. Kautilya poured sugar syrup on the grass. He explained to Chandragupta, who had been watching him that he was making the root of the grass sweet to attract ants. The ants would eventually destroy the grass. Seeing Kautilyas intelligence, foresight and determination, Chandragupta expressed his wish to be his disciple (Rangarajan, 1992). Whatever may be the circumstances, it is historically known (Rangarajan, 1992) that for seven or eight years Chandragupta had his education in Taxila, under teachers selected by Kautilya himself. The art of warfare and the art of governance were mastered by Chandragupta with equal expertise. The relationship between Chandragupta and Kautilya bloomed through the years developing into a strong force for their enemies. Kautilya fullled his objective of dethroning the Nanda kings and building an empire by keeping Chandragupta focused. Kautilya developed the famous Mandala strategy of slowly chipping away at the edges instead of attacking the heart of Nanda territory. He ignored the Nanda strongholds but harassed the troops stationed at the countryside gradually weakening the kingdom. In 326 BC, India was faced with a crisis. The land of the Punjab and the Northwest was overrun by the Greeks led by Alexander. Alexander left for Babylonia and died soon after, but his commanders were determined to incorporate the whole of north-west India into their empire. Kautilya built alliances with the small kingdoms and was able to throw out the invaders, bring the small chieftains under one rule of Chandragupta and weld all the small kingdoms into a huge centralized empire. Kautilya worked out brilliant strategies to completely defeat the Greek overlords who still ruled the Northwest of India. In a short time the whole of India, except the extreme South, came under the rule of Chandragupta Maurya. India became politically united under the brilliant administration of Chandragupta with the sage advice of Kautilya. The rule of the Mauryas may be considered as one of the golden ages of Indian history. Having succeeded in guiding Chandragupta in the establishment of an empire, Kautilya retired from active life in order to record what he considered to be the fundamentals of a sound policy under an able leader for building enduring institutions.

Kautilya dreamt of an egalitarian society where there are equal opportunities for all. Kautilya envisioned a society where the king is looking after its subjects and contributing for the growth and development of society in general. The result of his meditations is The Arthashastra. Lessons from Kautilya on leadership Attributes of a leader Since the late nineteenth century, the belief of scholars that a leader is endowed with superior qualities led to a search for identication of the qualities. The resultant Trait Theory of leadership assumed that people inherit certain qualities and traits that make them better suited to leadership. Kautilya also identies a few attributes of a leader. According to Kautilya, an ideal king is one who has the highest qualities of leadership, intellect, energy and personal attributes (6.1.2-6). The attributes laid down by Kautilya in The Arthashastra are very similar to those found in Stogdills list (Table I). Although Kautilya identies these traits for the leader and talks of good lineage also, yet he refers to the inherent potential of the person and his innate desire and ability to learn, as is made clear by his emphasis on training. Kautilya takes a multi-dimensional view when he says that the potential exists within the person. However, appropriate training is required to develop it further. Possessing certain traits only makes it more likely that the person will become a leader or be given leadership authority. A man attains greatness by his merits, not simply by occupying an exalted seat (Nitishastra, 16.6). The following extract from The Arthashastra claries it further:
Discipline is of two kinds inborn and acquired. Instruction and training can promote discipline only in a person capable of beneting from them. Learning imparts discipline only
Stogdill (1990) Adaptable to situations Alert to social environment Ambitious and achievement oriented Assertive Cooperative Decisive Dependable Energetic Persistent Self condent Tolerant of stress Willing to assume responsibility
a

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Kautilya (6.1.2-6) Have foresight to avail himself of the opportunities by choosing the right time, place and type of action Know when to ght and when to make peace Grasping, retaining, understanding, rejecting false views, and adhering to true ones Eloquent, having lofty aims Bold Listening to others Just in rewarding and punishinga Disciplined, not breaking promises, not being dilatory Energetic, quick, and dexterous Determined Well trained in all the arts, able to lead the army Should eschew passion, anger, greed, obstinacy, ckleness and backbiting Should know how to govern in normal times and in times of crisis

Note: Decisive is a broader term; Kautilyas use of the term just in rewarding and punishing is only partially applicable here

Table I. Traits and attributes of a leader: a comparative table

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to those who have mental faculties- obedience to a teacher, desire and ability to learn, capacity to retain what is learnt, understanding what is learnt, reecting on it and nally ability to make inferences by deliberating on the knowledge acquired. Those who are devoid of such mental faculties are not beneted by any amount of training (1.5.3-6).

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The rst of the 15 books of The Arthashastra deals mainly with the training of the prince for the arduous duties of rulership (Kangle, 1960-1965, Bk 2, p. 1). The following extracts from the Nitishastra demonstrate the importance given to training by Kautilya:
Though men be endowed with beauty and youth and born in noble families, yet without education they are like the palasa ower, which is void of sweet fragrance (Nitishastra, 2.8). Those that are empty-minded cannot be beneted by instruction. Bamboo does not acquire the quality of sandalwood by being associated with the Malaya Mountain (Nitishastra, 10.8).

Kautilya endorsed the ancient Indian view that the king must study four branches of knowledge, i.e. Philosophy, Scriptures (four Vedas), Economics, and Politics because one can know from these four, all that is to be learnt about spiritual welfare (dharma) and material well being (artha) (1.2.8,9). Kautilya also emphasized that the study of scriptures helps one distinguish between spiritual welfare (dharma) and material excess (adharma), the study of economics between material gain and loss and the study of politics between good and bad policies. When these three sciences are studied in the light of philosophy, people are beneted because their minds are kept steady in both adversity and in prosperity and they are made procient in thought, speech and action (1.2.10, 11). This is also the essence of Kautilyas thought on leadership, i.e. nding the balance between the inner self and the outer world. Leadership and values Burns (1978) talked about transformational leadership which raises the leader and the led to higher levels of motivation and morality as opposed to transactional leadership characterized by an exchange process or bargaining motive. Bass and Steidlmeier (1999) proposed that leadership needs to be grounded in moral foundations to be truly transformational. The three pillars on which ethical leadership rests are the leaders moral character, ethical legitimacy of the embedded values in the leaders articulated vision and ethical processes in the actions taken. Fry (2003) denes spiritual leadership as: comprising the values, attitudes, and behaviors that are necessary to intrinsically motivate ones self and others so that they have a sense of spiritual survival through calling and membership. It is the bonding of the individual with a higher power which is reected in the manner of operating on a daily basis. All these scholars agree that an effective leader needs to be in touch with the essential innermost values and communicate them to followers through personal actions. Kautilyas concept of an ideal leader is value based. This makes his approach holistic. He talks of the importance of learning and acquiring the right skill sets to be an effective leader. Simultaneously, he stresses the importance of self-purication and inner cleansing for holding the right perspective. Kautilya lays great stress on restraint of the organs of sense lust, anger, greed, vanity (mana), haughtiness (mada), and over joy (harsha). Whosoever is of reverse character, whoever has not his organs of sense under his control, will soon perish, though possessed of the whole earth bounded by the four quarters (1.6.4). The king should introspect and identify his deciencies

(atma dosha) to improve or develop himself. He warns of two undesirable attitudes of human nature excess ( pramada) and inactivity (alasya) to be watched for and avoided. Kautilya listed the values which a leader should possess piety, truthfulness, reliability, gratefulness, liberality, promptness, freedom from vices, long-term vision and conduct in conformity with advice of elders. He then enumerated the benets of a righteous leader. The leader nds joy by adhering to his duties (1.3.16) and earns spiritual merits by looking after his subjects (3.1.41). Administration rooted in the selfdiscipline of the leader brings spiritual and material well being and happiness (1.4.11) to the subjects. An ideal king:
[. . .] shall restrain the organs of sense (1.6.1-2), acquire wisdom by keeping company with the aged (1.7.1-8), see through his spies, establish safety and security by being ever active, maintain his subjects in the observance of their respective duties by exercising authority, keep up his personal discipline by receiving lessons in the sciences, and endear himself to the people by bringing them in contact with wealth and doing good to them (1.7.1).

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Conrmation of Kautilyas perspective on nding the ideal synergy between the inner self and the outer world is found in the Nitishastra:
He who gives up what is imperishable for that which is perishable, loses that which is imperishable; and doubtlessly loses that which is perishable also (Nitishastra, 1.13). As gold is tested in four ways by rubbing, cutting, heating and beating so a man should be tested by these four things: his renunciation, his conduct, his qualities and his actions (Nitishastra, 5.2).

The essence of leadership, according to Kautilya, lies in its ethical foundations. Since autocratic behavior of the leader is not acceptable to the people, the king (swami) should always adhere to the two pillars of the art of governance: justice (nyay) and ethics (dharma). For this, he chalks out a detailed plan of daily activities to be adhered to by the leader: Functioning of a leader. Kautilya puts down in great detail the duties of the king and the manner of governance for the effective, efcient and honest running of the State machinery. A kings daily routine is laid down explicitly in Book 1, Chapter 19 of The Arthashastra:
If a king is energetic, his subjects will be equally energetic. If he is reckless, they will not only be reckless likewise, but also eat into his works. Besides, a reckless king will easily fall into the hands of his enemies. Hence, the king shall ever be wakeful (1.19.1-5). He shall divide both the day and the night into eight nalikas [one-and-a-half hours], or according to the length of the shadow [cast by a gnomon standing in the sun]: the shadow of three purushas [36 angulas or inches], of one purusha [12 inches], of four angulas [four inches], and absence of shadow denoting midday are the four one-eighth divisions of the forenoon; like divisions [in the reverse order] in the afternoon. Of these divisions, during the rst one-eighth part of the day, he shall post watchmen and attend to the accounts of receipts and expenditure; during the second part, he shall look to the affairs of both citizens and country people; during the third, he shall not only bathe and dine, but also study; during the fourth, he shall not only receive revenue in gold (hiranya), but also attend to the appointments of superintendents; during the fth, he shall correspond in writs (patrasampreshanena) with the assembly of his ministers, and receive the secret information gathered by his spies; during the sixth, he may engage himself in his favourite amusements

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or in self-deliberation; during the seventh, he shall superintend elephants, horses, chariots, and infantry, and during the eighth part, he shall consider various plans of military operations with his commander-in-chief. At the close of the day, he shall observe the evening prayer (sandhya) (1.19.6.9-24).

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A king is thus allowed 10.5 hours out of 24 as his personal time. The time allocated for meditation shows how emphasis on personal purication can become an integral part of the busy daily routine of a leader. This will prepare the leader for effective handling of larger responsibilities (Table II). The king must not procrastinate in taking decisions on urgent matters as postponement makes matters more difcult and even impossible to settle at times (1.19.30). Kautilya believed that having a passive stance toward the world trusting in fate or relying on superstition was outlandish. One, trusting in fate, being devoid of human endeavor, perishes (7.11.34). His philosophy called for action, not resignation. The object slips away from the foolish person, who continuously consults the stars, what will the stars do (9.4.26)? In urging the king to rely on science and not the precepts of religion, Kautilya separated political thought from religious speculation. He, who is well-versed in the science of politics will bind other rulers by the chain of his intellect and can play with them as he pleases (7.18.44). People rst The term Servant Leadership was rst coined by Greenleaf (1970/1991, 2002). Sims (1997) viewed servant leadership as having the capacity to honour the personal dignity and worth of all who are led and to evoke as much as possible of their own innate creative power for leadership. Transformational leaders are able to establish an environment where relationships can be formed and foster a climate of trust in which visions can be shared (Bass, 1985). Avolio et al. (1991) discussed four primary behaviors which constitute transformational leadership idealized inuence, inspirational motivation, intellectual stimulation and individualized consideration. Although transformational leadership and servant leadership share several similarities, servant leaders focus on followers well being while transformational leaders are more concerned with organizational objectives as they enlist the support of their followers for creation of shared values and vision. Throughout The Arthashastra, Kautilya has emphasized the importance of focusing on the interest of the general public. He was of the opinion that a king shall never act in a manner leading to impoverishment. When people are impoverished, they
Number of hours 3 1.5 4.5 1.5 1.5 before sunrise 1.5 3 3 4.5 Activity Personal bath, meals, study Recreation Sleep Meditation Palace affairs and personal needs Public audiences Defence Secret consultations Administration of the state

Table II. Hourwise activity of king enumerated in The Arthashastra

become greedy and disaffected. Then they either go over to the enemy or kill their ruler. The king needs to be empathic and understand the needs of his subjects and take remedial measures if he feels they are uncomfortable:
The king (leader) shall consider as good, not what pleases himself but what pleases his subjects (followers). The king (leader) is a paid servant and enjoys the resources of the state together with the people. In the happiness of his subject, lies the kings happiness (1.19.34). As between land with the support of a fort and one with the support of men, the one with the support of men is preferable. For, a kingdom is that which has men. Without men, like a barren cow, what could it yield (7.11.23-25)?

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It is interesting to note Kautilyas views on transformational leadership: An ideal king is one who behaves like a sage monarch (Rajrishi), who is ever active in promoting the yogakshema of the people and who endears himself to the people by enriching them and doing good to them (1.7.1). The word yogakshema, according to Hindu belief, is a combination of yoga (successful accomplishment of an objective) and kshema (peaceful enjoyment of prosperity). An effective leader brings to him and his subjects material gain, spiritual good and pleasures. While talking about virtues of mercy and benevolence, Kautilya writes there is no austerity equal to a balanced mind, and there is no happiness equal to contentment; there is no disease like covetousness, and no virtue like mercy(Nitishastra, 8.3). Those who are destitute of learning, penance, knowledge, good disposition, virtue and benevolence are brutes wandering the earth in the form of men. They are burdensome to the earth (Nitishastra, 10.7). Delegation of powers Leaders need to delegate so that they can focus on larger issues. Successful delegation encourages employees to think independently and have a sense of ownership. The leader is burdened with fewer monkeys on his back and people feel empowered to think for themselves and draw on their experience and wisdom (Johnson, 2004). Modern theories link delegation with empowerment. Empowerment is the transfer of power and decision making authority down the organizational hierarchy and granting employees the authority to signicantly affect organizational outcomes. Empowerment is giving employees the authority to do the job (London, 1993). Empowerment may also be equated with delegation (Burke, 1986). Conger and Kanungo (1988) have argued that a view of empowerment as sharing power is incomplete and that a complete conceptualization must also include the motivational effect of empowerment on subordinates. Building on this work, Thomas and Velthouse (1990) presented a more complex model focused on intrinsic task motivation. Kautilya talks in detail about delegation, joint decision making and respecting the advice of subordinates. He does not specically mention the concept of empowerment. However, the very fact that he writes in such great detail about delegation leads us to assume that he has in mind the benets of empowerment which makes people function proactively and remain focused on goals. Kautilya equates empowerment with delegation and focuses on passing power from higher organizational levels to lower ones. Kautilya also talks of joint decision making and emphasizes the importance of the

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King and his counselors acting together. If the King and his counselors do not agree on the course of action, it spells future trouble, irrespective of whether the venture is crowned with success or ends in failure (9.7):
A King can reign only with the help of others; one wheel alone does not move a chariot. Therefore, a King should appoint advisors (as counselors and ministers) and listen to their advice (1.7.9).

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The state is conceived as having six constituents the king, the ministers, the fortied city, the countryside, the treasury and the army. The Arthashastra gives extensive instruction on how a king should appoint his council of ministers (Parishad). Kautilya also said that matters of state should be discussed with the council of ministers and the king should carry out whatever the majority decides. Kautilya lays down an elaborate hierarchy under the king. The king appoints the Prime Minister (Amatya) who operates the day-to-day machinery of the State through a council of ofcials consisting of Ministers (Mantris), Chief of Army (Senapati), Chief Priest (Purohit) and the Heir Apparent (Yuvaraj ), or identied successor to the throne. The hierarchy for governance goes down to the level of village through his concept of Mandalas. The advisors and aides are expected to be the conscience keepers of the King and caution him if he crosses the realm of good conduct. Kautilya states that:
[. . .] a Rajrishi (king who is wise like a sage) shall always respect those councillors and purohitas who keep him attuned to the practice of good conduct, reminding him about adhering to various duties and cautioning him, even when he errs in private (1.7.1-8).

Mentoring and succession planning Organizations with high quality leader development programs and formal succession management programs have superior business performance (Burke, 1997; Huang, 2001). Succession management is critical to ensure organizations have a ready supply of leaders. It is also critical to leaders who value opportunities for growth and development (Bernthal and Wellins, 2006). Training alone may not lead to optimum performance (Schmidt and Bjork, 1992) as there are inherent difculties in transferring learned skills from a single training to the work environment (Hesketh, 1997). Coaching can help to redress this transfer problem. By encouraging coaching, the leader can help the recipients to practice leadership skills and to develop them more fully with the help of constructive feedback (Olivero et al., 1997). Kautilya lays considerable emphasis on the importance of succession planning. While the eldest son in normally the successor, he may be by-passed if unt to hold ofce. Chapter 5.6 deals extensively with orderly succession issues in the event of the death of the King, either due to natural causes or in the battleeld. Kautilya advises specic training to prepare the heir apparent ( yuvaraj ), for the eventual succession. He recommends training in three specic areas: economic administration (Arthashastra), foreign affairs (nitishastra) and political science (dandaniti). Kautilya is also specic about the qualities councillors (mantris) must possess. These qualities are: power of concentration (drudhachitta), character (shilavan), thinking capability ( pragna), communication skill (vangmi ) and observation/vigilance (daksha). Like present day management gurus, Kautilya emphasizes the importance of the competencies of knowledge, skills, and attitude. The king is advised to study deciencies of the cabinet members and take steps to improve upon them because

ministers (mantris) could be incompetent, Army Chief (Senapati ) could be over ambitious, Chief Priest (Purohit) may not consider the present day practices or traditions while enacting laws of justice, which might lead to injustice. It is the duty of the king to guide his ministers for the overall welfare of the state and society:
The King should appoint those proved loyal by the test of piety to posts in the judiciary and for suppression of criminals, those proved upright by the test of material gain to ofces of the Administrator and in the stores of the Director of Stores, those proved pure by the test of lust to guardianship of places of recreation [. . .] Those proved loyal by the test of fear to duties near the person of the king [. . .] those found dishonest by every test, he should employ in mines, in forests for material produce, in elephant forests and in factories (1.10.13-15).

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Human aspect of leadership Likona (1991) denes character as doing the right thing despite outside pressure to the contrary and this is seen as an essential leadership attribute (Barlow et al., 2003). Barker and Coy (2003) developed a virtuous leadership scale covering seven virtues namely humility, courage, integrity, compassion, humour, passion and wisdom. Kautilya reminds the king that understanding the complexity of human nature is essential to be an effective leader. Human aspect of leadership requires a balance between reason and emotion. An effective leader needs to accept that people are both good and evil, with virtues and vices, divine attributes and demonic tendencies. The effective leader needs to develop subordinates in a manner such that the virtues blossom and vices are pushed aside. Contrary to the ancient Indian practice of starting a book with an invocation to a deity either Ganesh, the God who removes obstacles or Saraswati, the Goddess of Knowledge Kautilya begins The Arthashastra by invoking Sukracharya, the Teacher of the Demons and Brihaspati, the Teacher of the Gods. The gods and demons were enemies and had different viewpoints (Pillai, 2005). Kautilya demonstrates (as espoused by De Bono, 1970) at the very outset that the effective leader is one who can look at two different contradictory viewpoints at the same time and arrive at his own decision. Further, it has already been discussed that according to Kautilya the leader needs to have control over the sense organs and develop the virtuous traits (1.7.1-8). Kautilya is aware that for efcient running of the state, an elaborate machinery has to be established. The Arthashastra therefore deals extensively with all aspects of administration of a state. It covers the entire gamut of statecraft with the statement of goals which, rst, is to guide the ruler in efcient administration of his land and its protection from aggression and second, in evolving a sound foreign policy with the aid of which successful conquests can be made of neighbouring lands (Kangle, 1960-1965). The whole treatise focuses on the achievements of these two goals and offers practical solutions to almost every kind of obstacle that may be encountered by a ruler. However, It is indeed interesting to note that Kautilya, having woven an elaborate organization, moves to set up policies and procedures, i.e. business processes for the welfare of people. He is equally clear on the organizational aspects human dimensions of an organization as well as the leadership requirement of an organization. He observes that the State, is a social organization with economic aim (1.4.1-5). Commencing with the caring attitude required of a prince and the educational instruction to be imparted to him for this, The Arthashashtra talks of the duties of a king which includes making detailed policies not only for the growth of society,

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individual industries, labour and employment but also for the control of calamities and vices. For effective and efcient implementation of business processes, the king should see that his council of ministers also works for the betterment of the people:
After appointing ministers to ordinary ofces in consultation with the councillors and the chaplain, the King should test their integrity by means of secret tests (1.10.6).

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All superintendents should be appointed to works according to capacity. He should constantly hold an inspection of their works, men being inconstant in their minds. He should be cognizant of the worker, the ofce, the place, the time, the work to be done, the outlay and the prot in these undertakings (2.9.1-4). If an ofcer with small income has a large expenditure, he consumes state revenue (2.9.10).

Kautilya advocated adoption of a humanitarian policy toward those defeated in the war. Rather than massacring those who have been defeated, one gains more land and new and loyal subjects if one treats the defeated in a magnanimous manner. He should not use towards them insults, injuries, contemptuous words or reproaches. And after promising them safety, he should favor them like a father (7.16.22-23). Strategic alliances and networking Corporates proactively forge alliances to limit competitive interdependence arising out of environmental uncertainty (Drago, 1997; Beverland and Bretherton, 2001). Although power imbalance by way of size, resources, image or market access cannot be completely controlled, alliances are a way of dealing with intensied foreign competition, shortened product cycles, soaring capital investment costs, and the ever-growing demand for new technologies (Vyas et al., 1995). Campbell and Wilson (1996) suggest that superior resources can also emerge from a synergy resulting from coordination of independent rms in a series of value-adding partnerships. Corporates, in todays competitive global village, form alliances to fortify their territories from external dangers such as cheap imports and the entry of strong competitors. Kautilya too asks the king to give stress on building up a network of allies to fortify a kingdom. He stresses the importance of the ally (mitra), another king who would come to the support of the king should his kingdom be attacked by an external force. It will also be the duty of the king to extend all help if the ally is attacked. Each ally is to be treated according to his special characteristics:
An ally should be prevented from going over to the enemy. However, an ally should neither be allowed to grow in power nor become too weak. An ally must not be allowed to undertake independent operations which are not in consonance with the objectives of the conqueror and all perdious allies should be crushed (7.18.31-42).

Kautilya refers to diplomacy as an important element in foreign affairs. His clarity of thought is evident from the identication of six attributes of diplomacy, namely intelligence, memory, cleverness of speech, knowledge of politics, morals and readiness to provide resources. Though he is not shy of launching an attack as an external strategy, he also advises the use of diplomacy as a useful strategy to be explored showing his pragmatic approach to the external realities. He identies the external threats as the superiority of strengths of other kingdoms as well as ambitions of other kingdoms. We may conclude that if the word kingdom is replaced with corporate,

Kautilyas advice makes sense in todays corporate turf battles. Strategic alliances are the norm today be it heavy industry, steel, aviation, telecom or nancial services. In his section on foreign policy, Kautilya wrote a startling sentence: Of war, there is open war, concealed war and silent war (7.6.17). Open war is obvious, and concealed war is what we call guerrilla warfare, but silent war is a kind of ghting that no other thinker has discussed. Silent war is a kind of warfare with another kingdom in which the king and his ministers and unknowingly, the people all act publicly as if they were at peace with the opposing kingdom, but all the while secret agents and spies are assassinating important leaders in the other kingdom, creating divisions among key ministers and classes, and spreading propaganda, and disinformation. In silent warfare, secrecy is paramount. Open warfare, Kautilya declared, is most righteous, (10.3.26) but he was willing to use any and all kinds of warfare to achieve consolidation and expansion of the kingdom. It may be a little surprising to note that throughout his discussion here Kautilya seems to be emphatic on strategy. Kautilyas strategy is, however, informed and guided by the spiritual purication and hence he lays a great emphasis on self-purication and meditation for leaders. This is how he tries to achieve a balance between ethical aspects and strategic reality. It is interesting to note the advice Kautilya provides to handle a strong king who has evil designs as well as a weak king who has catapulted easily. To defeat designs of a strong king, Kautilya advises networking with other kings defeated or threatened by the strong king on one hand and develop nuisance value through nibbling by the sides. He also advocates the concept of studied indifference (upeksha), in the face of strength as a diplomatic move. To a weak king who easily catapults or surrenders, Kautilyas advice to the strong king is to give the weak king his dignity and not to rub his nose in. This will ensure gratitude of a useful friend who will never forget the good treatment received and will remain ever so grateful. The Arthashastra also contains extensive injunctions on conduct of foreign relations. The mission of envoys; the nature of alliances; the forms of agreement to be made by an inferior king; conduct after proclaiming war or concluding a treaty of peace; agreement; peace with or without terms; peace and war by adopting dual policies; considerations about the enemy in the rear; measures conducive to peace with a strong enemy; making peace and breaking it; time of recruiting the army; knowledge of the power, place, time, strength and weakness of the enemy; considerations about loss of men and wealth in war; the duties of an ambassador; sowing the seeds of dissension among enemies; restoration of peace in a conquered country and other matters are extensively dealt with. Strategic communication Strategic communication is getting the right message, through the right media, to the right audience at the right time and with the right effect. It implies effectively reaching and communicating clearly to a targeted audience with specic constraints (Mehrabian and Wiener, 1967). Wriggle (2006) advocates that shaping the information environment is necessary for achieving strategic goals. Strategic vision is dened by leaders through personal example based on values, diversity, innovation and integrity (Barrett, 2006). The Arthashastra is the wisdom of a long period of reection on the science of politics and provides detailed guidelines to the head of the state not only for its proper administration but also its protection in case of internal unrest or external aggression. A close examination of The Arthashastra reveals that the notion of political

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communication was not alien to ancient political philosophers and policy makers and it was considered to be an integral part of administration. Kautilya enumerates numerous ways by which rivals can be outwitted by stratagem, or overcome by force, and ultimately sets an ideal of a world conqueror (vijigisu) before the king. Persuasive communication has an important psychological effect and plays a vital role in wartime just as in peacetime. Kautilya instructs kings to summon all their troops before war. The king in his address to them should exhort them to defeat the enemy as the kingdom was to be enjoyed by the subjects and their ruler alike. Kautilya demonstrates the use of propaganda techniques in statecraft. In his treatise he asks the king as well as the minister and the chaplain to encourage the warriors by pointing out their superiority (10.3.32). Apart from these morale boosters:
[. . .] bards and panegyrists should describe the attainment of heaven by the brave and the absence of heaven for cowards, and sing praises of the caste, corporation, family, deeds and conduct of the warriors. Assistants of the chaplain should speak of the use of sorcery and black magic; mechanics, carpenters and astrologers (should speak) of success in their own words and failure in those of the enemy (Kangle, 1960-1965).

The Commander-in-chief should after careful inspection of the troops announce monetary rewards according to their achievement in war. This would spur the troops to greater action. In the section on instigation to sedition, he gives the king a strategic plan to conquer the enemy by means of disinformation, rumors and propaganda. The king should use communication in such a way as to ll his men with condence and enthusiasm and ll the enemys side with fear and uncertainty. He should communicate secret information about their won territories to the chiefs, expose traitors to the enemy king. He should also send signs or signals about an event which should be communicated from foreign lands through domestic pigeons carrying a sealed communication (Kangle, 1960-1965). All these ominous communications should unnerve the enemy king. Kautilya also mentions proclamations which could be made in the form of divine instructions during religious rites. Soothsayers, interpreters of omens, astrologers, reciters of ancient scriptures ( puranas), seers and secrete agents, those who have helped and those who have witnessed it, should broadcast that power of the king in his own territory (Kangle, 1960-1965). Disinformation about meeting the divinities, acquisition of treasury and getting military support from a divine source were all avenues of creating chaos in enemy territory. There should be predictions of victory for their side and reverse of it for the enemy. Kautilyas policy of sowing dissensions and instigating sedition for the purpose of gaining victory over enemies involves the use of stratagems in which communication plays a very important role. His enumeration of foreign policies under various circumstances involves highly complex communications which would be advantageous to the conqueror. All treaties had specic instructions on the kinds of alliances to be forged and their role in war (Kangle, 1960-1965). The duties of an envoy are described as maintenance of treaties, winning over the favor of his enemy, sowing the seeds of dissension among the friends of enemies, gathering information about the movement of spies and taking similar steps conducive to the interests of his master. Remarking on non-verbal communication, Kautilya describes it as behavior other than normal. Secret counsel could be betrayed by the gestures and expressions of ofcials. Ancient consultations reect modern group dynamics. Kautilya specically

instructs the king to hold consultations with a group of three or four councillors the reason being: (1) one councillor can do his best to have his way; (2) two may unite against the king or hold diametrically opposite views; (3) three or four can interact well to reach a balanced view; and (4) more than an optimum number may lead to complications such as not reaching an understanding or not keeping a decision secret. Kautilya devotes a whole chapter in his treatise to the topic of edicts. Royal edicts were used for giving directions or orders (sasana) and were the principal means of communication of kings in times of war and peace. Writers of edicts or scribes were required to have the intellectual capabilities of a minister, be conversant with all conventions, be quick in composing matter and reading documents and have a beautiful handwriting (2.10.3). Use of blogs and virtual networking in modern times indicate that todays leaders also appreciate the need for documentation for future reference. Blogs also serve as a popular means of communicating opinions and viewpoints. Change and crisis management A helpful exercise in anticipating the worst for any organization is to list every conceivable type of disaster that it could be confronted with. The next step would be to put in place an effective crisis management policy and procedures in advance. Should disaster really strike, the organization is then fully prepared and time is not wasted at all (Zerman, 1995). A scan of the internal and external environment is an important part of an organizations strategic planning process. Albert Humphrey of Stanford University is credited with using the strategic planning tool SWOT Analysis in the 1960s for evaluating the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Book nine of The Arthashastra lays out how a king is to undertake a SWOT analysis before setting out on a campaign. Kautilya lists eight different factors which need to be considered (9.1.1): (1) power; (2) place of operations; (3) time of military engagement; (4) season for marching towards battleground; (5) troop mobilization; (6) possibility of revolts and rebellions in the rear; (7) losses, expenses, gains; and (8) likely dangers. Only when all the eight factors have been considered and the king realizes that he is superior to the enemy to be attacked, will he prepare for war (Rangarajan, 1992, p. 625). The rst factor, power has three elements: intellectual power (which enables a king to make objective analysis and make correct judgment), military might, enthusiasm and morale. Place and time are the next two important factors. Danger of internal rebellion

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is also an important consideration. The king must also calculate what he hopes to achieve and balance the gains and losses. Lastly, the possibility of treachery is to be taken into account. Kautilya suggests an elaborate crisis management plan. Treason, treachery, revolt, and rebellion were the dangers being faced by the King at every stage. Tackling treachery is given importance in Book 9. The king needs to anticipate discontent among his subjects and prevent them from becoming worse (7.5.19-26). Palace coups are dealt with in detail (9.3, 9-34). While the king had to be on guard against the treachery induced by the enemy, he is also advised to practice similar subversion of the enemys people (9.3.35). Kautilya believed that people who think that the society in which we live will remain the same; are dissuading themselves of the truth. Society is a complex and dynamic system changing constantly leaving those people behind who say no to change. He was always challenging the existing system and working towards creating a better environment for maximum benet of the people. The leadership model Kautilyas concept of leadership may be summarized and presented through the following model; as this model is holistic, combining value-based eastern approach with skill-based western approach on leadership, it can be used for leadership development in modern global context (Figure 1). Most of Kautilyas views were so farsighted that they appear to be prophesies. If we look at the writings of our modern day management scholars and thinkers, some of the knowledge they dispense may be found in the writings of Kautilya. Kouzes and Posner (2003) list ve practices which an effective leader must inculcate. A leader must be a role model, inspire a shared vision, challenge the process, enable others to act and encourage the heart. Kautilyas writings also emphasize that an effective leader needs to possess these qualities. A paradigm shift is taking place in todays social, political, and economic milieu resulting in business organizations making the transition from a linear, mechanistic and ordered structure to a non-linear, holistic and all-inclusive framework. The present leadership training and development methodology produces individuals with strong quantitative skills focused on tasks, timelines, performance, results, outputs, and deliverables. Academicians and practitioners are now questioning this approach. A need is being felt to look beyond and provide holistic learning which includes development of values, ethical standards and people focus. Apart from providing skill-based training, emphasis needs to be given on inculcating practices for self-discipline and internal purication. A look at the model developed from Kautilyas writings makes it clear that a leader must have inherent potential to begin with, i.e. the potential to absorb teachings given by experts. He must have a sharp mind, physical energy, resoluteness of purpose and capacity for learning and retention. The learning will yield result only if the learner has the potential. On the one hand, he will undertake purication of his senses through self-discipline and meditation and also through his association with the learned elders. On the other hand, he will acquire skill in statecraft, corporate warfare, economics and diplomacy. Thus, the effective leader will undergo internal purication leading to spiritual strengthening and acquisition of worldly skills. This would help him develop a mind-set rmly embedded in a value-based structure and ethical practices and a skill-set ideally appropriate for this position. The leader would not only be benevolent

The leader

Self-purification Self discipline through meditation Association with elders

Inherent potential Energetic Intelligent & analytical Learning ability

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Acquisition of skills Statecraft Corporate battles Economics Diplomacy

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Mind set Ethical Value based Benevolent Empathic

Qualities Visionary Strategist Able administrator Effective communicator Team player

People welfare Organizational responsibilities Universal order

Figure 1. Leadership model based on Kautilyas theory

and empathic but also a visionary, strategist, good communicator, and work in consonance with his team of advisors. The nal outcome of the good leadership practices would then be the fulllment of organizational responsibilities (raj dharma) and preservation of universal order (dharma) thus ensuring the welfare of the people. In todays competitive global environment, a leader has to draw on all his skills to ensure business growth. At the same time, his actions need to be rooted in humanism and ethical practices. Effective combination of business acumen with people-focused approach helps the leader to contribute to a world order which benets the entire humanity.
Notes 1. This paper is primarily based on L.N. Rangarajans translation Kautilya The Arthashastra (1992) and Dr R.P. Kangles three volume set of the The Kautilya Arthasastra (between 1960 and 1965). These versions use modern language which is free from archaic expressions,

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voluminous footnotes and literal translations. Textual quotations from Rangarajan, e.g. 1.5.3-6 denotes Book 1, Chapter 5, Section 3 to 6 while Kangles textual quotations are included in the text as Kangle, 1960-1965, Bk 2, p. 1. In this paper, we will refer to this book as The Arthashastra. 2. Nitishastra www.hinduism.co.za/Chanakya.htm (accessed on July 10, 2008).

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