Ancient Indian philosophy has as one of its central tenets the idea that things operate in cycles. At a cosmic level, there is the concept of the Yugas or ages, with one age succeeding another. At the natural level, of course, are the cycles of the seasons, with one season inevitably giving way to another. At the level of the individual, there is the concept of the cycle of birth, death, and rebirth.
At the level of our day-to-day life, is the belief that our fortunes too operate in cycles. As Lord Krishna tells Arjuna in the Bhagavad Gita, one should face success and failure alike with equanimity, as one succeeds the other, as surely as the cycles of the seasons.
As I began studying Economics at school, I noticed that economists and business leaders, too talk of cycles- of an economy moving from expansion to contraction, growth to recession, and then growing again; and indeed of businesses going from periods of growth to decline, only to rise again. In recent times, there’s much talk of us living in a volatile and uncertain world, the so-called VUCA phenomenon, which makes these cycles much less predictable.
In such times, the ancient Indian concept of Yugas offers valuable lessons in maintaining perspective, resilience, and stability. The Yugas are four distinct epochs described in ancient Indian scriptures: Satya Yuga (the Age of Truth), Treta Yuga, Dvapara Yuga, and Kali Yuga (the Age of Darkness). Each Yuga is characterised by varying levels of virtue, morality, and social order. The cyclical nature of the Yugas signifies the ebb and flow of time, illustrating that periods of prosperity and decline are natural and recurrent.
Business cycles ebb and flow from expansion to contraction, as the Yugas transition to different phases. Leaders who recognise that this kind of experience is cyclical avoid overreacting to short-term fluctuations; rather, they adopt a longer-term view that appreciates both success and failure as temporary stages within a larger continuum.
The Yugas also remind us that change is inherent in anything and everything. This would mean leaders anticipating inevitable changes, whether they be disruptive or destructive or new technologies that change how work is done. Once change is accepted as a constant, a culture of adaptability and innovation will be created.
The Yugas teach us that extreme reactions to success or failure can lead to detrimental consequences. In the business context, this means avoiding impulsive decisions driven by short-term gains or losses. Leaders who remain steady and composed, regardless of external conditions, can make more rational and strategic decisions, thereby steering their organisations through volatility with greater stability.
In modern literature, Nassim Nicholas Taleb, author of The Black Swan, echoes the need for accepting change and adapting to it. He argues that it is essential to make peace with uncertainty, randomness, and volatility. Those who do not — who insist not only on trying to predict the future, but also on somehow trying to manage it — he disparagingly calls “fragilistas.” A sports analogy, one Taleb himself uses, effectively illustrates the idea of benefiting from shock.
When we go the gym and lift heavy weights, we intentionally apply stress to our body. Muscle tissue is strained and even broken down. The body’s response is to overcompensate to the trauma and emerge stronger than before. Thus, Taleb argues that instead of being demoralised or paralysed by change and volatility, we should emerge stronger.
One way of doing that, driving inspiration from the scriptures, is to have a steady moral compass when all else around us changes. Each Yuga is associated with specific moral and ethical standards. Modern business leaders can draw from this by prioritising ethical behavior and integrity. During periods of volatility, maintaining ethical standards can build trust with stakeholders and ensure sustainable success. Ethical leadership fosters a positive organisational culture and enhances the reputation of the business, providing a solid foundation for navigating uncertainties.
The teachings of the Yugas encourage leaders to avoid overreaction, adapt to change, and uphold ethical standards, ensuring that their organisations thrive even in the most challenging times. In a world of constant flux, these ancient insights provide a guiding light for navigating the complexities of the modern business environment.
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