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Of travels and travails

R. Bala, the chief executive officer of Tata Zambia, explores the ins and outs of what it takes to be a leader in a country far from home

The phrase 'going abroad' always conjures images of travelling to exotic places. For R. Bala it meant leaving his motherland for a country, which was devoid of basic necessities such as salt and rice. But the drawbacks were soon cancelled out by the many merits of a city and a country that offered a wide variety of the bright and the beautiful.

Mr Bala soon grew accustomed to the contradictions that made up life in Zambia and the initial regrets melted away in the face of the benefits. Moreover, Tata Exports, the company he joined (now Tata International), was a big name.

Today, 23 years down the line, Mr Bala — chief executive officer of Tata Zambia, chairman of Global Compact, Zambia, and member of the board of directors of Taj Pamodzi — is happy with the turn his job and his life have taken.

"What I like most about the job," says Mr Bala, "is that I have grown into it. There is a tremendous amount of familiarity with the people and the business." The growth has come about in the face of numerous odds and constraints in the environment. Currently, Mr Bala's role involves planning, strategising to increase business from current customers, looking for new opportunities from potential customers and forecasting stock and people requirements, and ensuring that Tata Zambia stays within budget in a highly fluctuating environment.

Mr Bala begins his day by preparing a list of things that he must do that day. In it he reflects on unfinished tasks from the previous day and considers the priorities for the next, including calls to be made, emails to be sent, reports to be prepared, internal meetings and reviews to be organised, and customers and officials to be met.

These tasks are fraught with difficulty and uncertainty. "For example," says Mr Bala, "one of the headlines in Malawi some days ago quoted Stanbic Bank and warned that president Bingu Mutarika's resignation from the UDF Party could bring uncertainties into the Malawian economy. Such uncertainties arise out of political developments, which are influenced by issues such as ethnic or tribal tensions, poverty, corruption, civil war in the region, etc."

In relatively small economies such as Zambia or Malawi, political risks and uncertainty can result in exaggerated reactions, such as donor funding being stopped, currency devaluation, and postponement of investments and purchase decisions. Such changes have added to the risk of doing business in Zambia, affecting the fortunes of scores of companies.

Many enterprises that were market leaders in the 1960s, '70s and '80s were liquidated or pulled out of Zambia, but some survived and prospered. One factor that distinguishes the winners from the has-beens is quality of leadership.

"Good leaders display strong commitment to their companies, shareholders, employees and other stakeholders such as society in general," Mr Bala says. "They have a long-term vision and adopt strategies which ensure that the companies they lead prosper and contribute over a long period of time."

A good leader has to make his presence felt. "This generates goodwill and support among political and business leadership in the country and society in general," says Mr Bala. This is especially important in light of the many and constant changes in the political and economic scenario.

A good leader, according to Mr Bala, "has to help the organisation adapt to these changes by exiting from nonviable industries, restructuring the organisation, building assets which give long-term advantages to the company, and keeping costs under tight control."

To do this the leader must be a good human being. "Unless the leader has the support of his team, his customers and suppliers, and society in general, he may not remain a leader for long," says Mr Bala. "The people who work with him need to be convinced that his prosperity and growth will not be at their cost. Society at large needs to be convinced that the organisation he leads is neither exploiting them nor employing unethical business practices. Being a good human being is necessary to build loyalties."

The leader must also learn to function well in the environment in which he finds himself. Says Mr Bala, "Globalisation is breaking barriers and bringing unfamiliar threats and opportunities. Imports from China, for example, have suddenly become a challenge to many organisations. Corporate leaders have to be aware of new developments around the world in various industries and technologies, and adapt their organisations to meet these challenges."

Interestingly, a leader in Zambia cannot get away with just delegating work; he must roll up his sleeves and not be afraid to get his hands dirty. "People who delegate and don't follow up can get into a messy situation," says Mr Bala. "I have seen companies shut down because people in senior positions chose to delegate, and the tasks assigned were not completed by the person to whom they were delegated."

There are other points to be borne in mind to ensure that the business survives amid tough conditions. Since overheads become difficult to sustain, the company employs a limited number of people. Senior people, especially, have to always be on call. Personnel have to be cautious in business dealings, as there is no scope for mistakes. The senior management must work as a team.

Mr Bala stresses the importance of effective communication, knowledge of business and products, and on respecting the culture and traditions of the local people. "Knowledge of the local language is a feather in one's cap," says Mr Bala, "even though most people speak English." He is an advocate of the participative form of leadership, because "other people might have better ideas. Your understanding of an issue could sometimes be very flawed. So, it is important to listen. I was taught that it doesn't pay to jump from an unwarranted assumption to a preconceived notion. This is especially true in an environment such as Zambia's."

In spite of the many challenges of daily living and the constraints of doing business in Zambia, Mr Bala has developed a liking for this corner of the continent that he calls home away from home.