On 'Toxic' Work Cultures

This week brought some sad news. A young man with incredible credentials, working at one of the world's biggest consulting firms, tragically ended his life. Since investigations are ongoing, it might be premature to speculate on the reasons behind his drastic step. However, many of my friends and numerous thought leaders have been addressing this tragedy from the perspective of 'toxic work culture' in corporate India. Hence, I thought it pertinent to discuss this particular aspect.

Let's start from the beginning. Consultants, unlike doctors and engineers, are a relatively modern phenomenon. While people do 'consult' with others occasionally, the day-to-day activities of 'consultants' remain a mystery to many. Landing a job at a top consulting firm is challenging. It requires the ability to think clearly, analyse, and present effectively. Consultants are like surgeons - summoned when there are issues and expected to perform under pressure. This is why only the sharpest and most adept individuals are selected.

Remember the adage, "Don't just feed someone; teach him how to fish"? Well, consultants are the ones teaching. However, they do charge handsomely for it. This ensures that those who most need the teaching receive it first.

Yet, the internet is full of jokes about consultants. My favourite goes, "A consultant takes your watch to tell you the time and then charges you for it." It sounds amusing, doesn't it? But it also unveils a bitter truth - thousands still don't know how to tell the time on their own watches. As young MBAs, you might be surprised that things are not as 'sorted' as they appear in textbooks. These firms stand out because they don't hesitate to seek help. In essence, the consulting profession is built on offering assistance to those in need.

The sheer volume of work they undertake is staggering, spanning diverse industries and countries and at different levels of management. Consultants are expected to adapt to changing business needs and perform under pressure. This is precisely why we celebrate when firms like BCG, McKinsey, and Bain visit B-School campuses and our MBAs compete for their lucrative jobs. It signifies that the students are capable of excelling under demanding conditions. This year, despite a downturn in placements, the top IIMs have seen a fourth and a half of their students secure positions at such prestigious places. We celebrate these achievements with press releases and Facebook posts.

If everything I've written holds true, are we not all contributing to a system that fosters 'toxic' work cultures? I believe not. And let me add my two cents on this matter.

Why do consultants get paid so much? In fact, why does anyone get paid a salary at all? Essentially, there are only two reasons: they either contribute to generating revenue or help decrease costs. One would be substituted or replaced relatively soon without achieving one of these two. It's sensible to view salaries as a reflection of the value one adds.

If someone is to be paid a crore, they must bring in at least 2-3 crores of value to justify their position. That's the only way a business can sustainably operate. The harsh reality is that not everyone will meet these 'targets' every year. Therefore, firms, primarily consulting ones, have systems to help people achieve their goals. Consider this: these are some of the brightest minds in the country, and their business relies on 'helping' others. For example, BCG used to have this unique program called "PTO" - Predictability, Teaming, Open Communication for every case team. The programme focused on project experience, and aimed at improving the predictability of work at BCG by leveraging each other's support to achieve better outcomes on the Job. In fact, BCG used to consider this as a business initiative rather than a HR initiative and Project Leaders and Principals (Management Consultant Cadre) used to run this initiative for all ongoing projects. Bain and McKinsey too have similar internal programmes in place. 

This brings me to the core of our discussion here today. A few months back, someone remarked, "At IIMs, you should not sleep more than 5-6 hours daily. Five hours is a lot of time." Subsequently, some of my faculty colleagues and I discussed how, as a community, we might be endorsing a toxic environment. Reflecting on it, I now believe pushing our students hard is necessary; that's the demand of the hour. Not only should we make them, but we should also provide ample opportunity for them to face failure. This way, they can discern the difference between 'toxic' and 'demanding.' Let's try to understand the distinction between the two.

Toxic Work Environment:

• Lack of Respect: A toxic environment often lacks respect for employees' contributions and personal boundaries. There may be a pervasive sense of being undervalued or dismissed, regardless of one's effort or outcomes.
• Constant Fear: Employees may constantly fear making mistakes or facing repercussions for expressing their opinions or ideas, stifling creativity and growth.
• Poor Communication: There needs to be clearer, constructive communication, leading to misunderstandings, confusion, and unnecessary stress.
• Unhealthy Competition: While competition can be motivational, in a toxic setting, it becomes cutthroat, undermining teamwork and trust among colleagues.
• No Work-Life Balance: Excessive work hours, lack of time off, and an expectation of being always available contribute to a lack of balance, affecting personal well-being.
• Negligible Support: In toxic environments, there's often a lack of support for professional growth or personal challenges, leaving employees feeling isolated and undervalued.

Let’s be honest. These are not precisely what characterizes McKinsey, Bain, BCG and the others. They are characterized by the following: 

Demanding Work Environment:

• High Expectations: A demanding environment sets high standards and challenges employees to meet them, promoting growth and achievement.
• Clear Objectives: Even when the workload is heavy or the pace is fast, goals and expectations are clearly defined, offering direction and purpose.
• Supportive Leadership: Leaders in demanding environments provide guidance, feedback, and resources, helping employees navigate challenges and advance in their careers.
• Recognition: Achievement and hard work are acknowledged and rewarded, reinforcing motivation and commitment.
• Collaboration: While the work may be intense, a culture of teamwork and mutual support prevails, fostering a sense of community and shared purpose.
• Work-Life Integration: Employees are encouraged to maintain a healthy balance with respect for personal time and well-being, even in busy times.

In recent years, I've had the eye-opening opportunity to sit across from numerous MBA hopefuls during admissions interviews. These interactions have been enlightening, not just about the candidates' aspirations but also about deeper systemic issues we rarely speak about and address head-on in our educational fabric and familial expectations.

1. Facing the Music of Rejection: There is now a resistance to the word ‘No’. As a student, I used to be told No quite often and we used to find solutions because of that. Now when the tables have turned, students seem to not want to hear ‘No’. Everything becomes an argument and I have to explain why I rejected something. The other day, I had to ask someone, “What would you do if you were in my shoes”. And then there was silence. 
2. Locus of blame: If something goes wrong, it is always someone else's fault and never theirs. The next time you are in an interview, go ahead and try this. Ask them to explain a situation when they were at fault and blamed it on someone else. You’d get a true flair of what you will be up against soon. 
3. Yes-Men in the Making: Then there are the people-pleasers. I see students stretching themselves thin, trying to be everywhere, do everything, and please everyone. But then, they do not do anything they want to do to a good level and instead focus on creating excellent recipes for burnout. It is necessary to instil the courage in our students to say “No’ (I have to refrain from talking more on this until I practice myself). But you get the idea.
4. Jumping the Gun with MBAs: Families push students to pursue an MBA even if they don’t have any work experience. No matter how many IIMs there are, even IIM Sirmaur explains how impressive their teaching pedagogy is, it cannot match real-world experience. If anything, this is one thing that we can implement quite easily at the policy level. 
5. The Financial Literacy Gap: Then we hit the financial grandiosity that comes with those hefty post-MBA paychecks. It's like a rite of passage—landing a big salary and then splurging it on symbols of 'success.' But what if we redirected this narrative? What if we taught our students the art of wealth building, not just wealth flaunting? Understanding the basics of personal finance could be the cornerstone of a well-lived life. 

We've got our work cut out for us, but I believe in the power of change, one step at a time. Let's mentor our students not just for the corporate race but for the marathon of life. As we reflect on our approach to education and development, I am reminded of a passage from one of my favorite books, 'Tough' by Greg Everett: 'We don’t have the power to choose all of our experiences, but we always have the ability to choose our behavior in the midst of them and in their wake, and those choices are what define our character.' This sentiment resonates deeply as we consider the path forward, emphasizing the need for character building.

Our focus should extend beyond academic excellence and technical skills, nurturing attributes like resilience, empathy, integrity, and adaptability. These are the cornerstones of true character, the traits that will empower our students to thrive in any environment, face challenges head-on, and lead with compassion and wisdom. By instilling these values, we do more than prepare students for a job; we equip them for life, helping them to navigate its complexities with grace and strength.

As educators, mentors, and industry leaders, our role is to model these virtues, create environments that foster character development, and guide the next generation toward a future where success is measured not just by achievements and accolades but by the depth of one's character and the impact of one's actions. Let's commit to this mission, shaping a world where our students can emerge not just as successful professionals but as true pillars of society.