'Focus on purpose over valuation': Tata Sons' N Chandrasekaran's success mantra for entrepreneurs

Entrepreneurs must focus on building a purpose-led organisation rather than valuations, Tata Sons Chairman N Chandrasekaran, said on Thursday. He added that purpose gives a path to an organisation, which leads to success and ultimately valuation goes up. Chandrasekaran was speaking at the Ascent Conclave held in Mumbai.

"One must concentrate on the left side of the accounting statement before looking at the right side or the P&L. It's not winning that matters, or the willingness to win that matters. It is the effort to win that matters," he said, adding that the bottom line is as important 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. In some situations, it is about leading from the front. To me, the most important of all is the ability to build teams, empower them, give them the space and realise a situation where each one of them performs better than what they think they are capable of."

Building great teams requires a lot of trust and empowerment, he said. It requires openness, heart and mind to take criticism.

The keynote address largely drew parallels between his favourite hobby of marathon and business leadership, where he compared how the two are similar. He said that in both marathon and leadership, it's about fitness first and performance next.

"You can't just target growth rates if the organisation is not fit," he stated, adding, that there are moments that one goes through self-doubts, but in those moments, it is very critical to stay the course.

His session also highlighted that "mental health" and "will power" are key for leaders.

Furthermore, he said that the next two-three decades belong to the country. "Opportunities are enormous because all the disruptions, which include digital, supply chains, energy transitions, or geo politics are all working in favour of India. We are a nation with tremendous talent. It is fair to say that it is going to be India's few decades. If there is a time when people can dream very big, and have a chance of achieving it, it is one of those moments now."

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