EABS: Guest lecture by Kiran Karnik held

He discussed the subprime crisis and gave insights as to what managers and leaders should do in this constantly changing and uncertain environment. His speech included two important concepts. First, the Chaos theory in which he described how an initial small change may have a huge impact at the end. Second, the psychological effect called the ripple effect, which is clearly evident in todayas financial turmoil. He talked about how different disciplines impinge on each other and the importance of the need to be interconnected cross disciplinary rather than being cocooned in one discipline. He said that managers typically look at the resources and optimization of those resources. Leadership on the other hand looks at how differently these resources can be used, how to change the constraints and get more of these resources. Leaders distinctively change the rules of the game and the business model itself. Leaders are visionaries and innovators. They do not compete with anybody and donat outrun but they sure outsmart others in the game.