Like a Boss: HDFC’s Deepak Parekh on his open-door policy, the business leader who inspires him, and his key management advice

Note to readers: How ​do corporate India’s leaders manage their businesses? Where do they draw inspiration from?  What is their management style? Like A Boss is a new series of interviews aimed to offer readers lessons from corporate bosses on how they run their companies. 

Deepak Parekh, chairman of Housing Development Finance Corporation (HDFC), is an Indian banking icon, having built an institution that is synonymous with mortgage finance services in India.

Parekh displayed classic judgement and prescience to grow an institution in its formative years, navigating it through several tough phases, and transform it into a formidable financial services institution.

Today, HDFC is present in a raft of services ranging from banking to life insurance to real estate.

Policymakers and business leaders often lean on him for advice on strategy and even to settle contentious matters. Before he stepped down as HDFC CEO in 2009, Parekh had worked in the company for 31 years, including 16 as chairman.

In an exclusive interview with Moneycontrol, the doyen of Indian banking reveals for the first time his management style, who has inspired him most in the world of business and his success mantra.

Edited excerpts: 

Q. What time do you like to be at your desk?

Starting work doesn’t always have to mean being at one’s desk.  My morning schedule in the so-called pre-COVID times could start as early as a 7.30 am with breakfast meeting, followed by reaching office by 9.30 am.

I use to travel a lot, so that would often mean an extra early start to the day. I have always liked to meet people. Often if there were people who wanted and I didn’t have the time to meet during the week, I would call them home on Sundays.

Honestly, I’ve rarely kept track of timings at work.  But mostly I prefer an early start to the day.

Q. Where is the best place to prepare for leadership: at a business school or on the job?

A. I have always believed in the philosophy of learning by doing; so most certainly, it’s on the job.

Q. Describe your management style.

A. An open-door policy – anyone, irrespective of their hierarchy can meet me. Being approachable is important.

Q. Are tough decisions best taken by one person or collectively?

A. Outcomes tend to be better when organisations adopt a more inclusive and consultative process, but having said that, ultimately, there has to be one person accountable for taking a final stance. Most times it should be a combination of both.

Q. Do you want to be liked, feared or respected?

A. Certainly not feared. As far as being liked or respected is concerned, to my mind, both are never given, they have to be earned.

Q. What does your support team look like?

A. The tables have turned now. In my non-executive role, I am now happy to support anyone or any team that needs my help or advice.

Q. A business outside of banking or a business leader that you draw inspiration from?

A. I have always looked up to Keshub Mahindra (chairman emeritus of Mahindra and Mahindra) in the way he has conducted himself in business and the manner in which he treats people. I have always learnt a lot from him over the years.

Q. Which management book has influenced you the most?
A. To be honest, I can’t singularly pick out any one book. A lot of management books tend to be contextual and pertinent to their respective times.

Q. Do you socialise with your team outside of work?

A. Yes, but mostly on specific occasions. But one should also be mindful of the fact most employees do also want to spend time with their families and loved ones.

Maybe post-lockdown whenever we are able to resume work, there will be a new-found vigour to celebrate with colleagues – and I look forward to that.  One must stay optimistic that we will prevail over the current circumstances.

Q. What would your key management advice be?A. Guard against greed, excess leverage and short-cuts. Honesty, integrity and humility are time-tested traits and there is no softer pillow to lay your head upon at night than a clear conscience.