“I consider it a great honour”: Dinesh

By Chiara Tissera

Q: I am sure you must to be the youngest Chairman of a Bank and the youngest Chairman to be appointed by Commercial Bank. Was it a surprise?

A: I was on the Board for over six years and was the Deputy Chairman of the bank. Prior to this I had been a Director of DFCC Bank for over eight years, Chairman/CEO of the Employees Trust Fund Board and from ’94 to ’98 I was the Resource Development Head of Pan Asia Bank. I had also worked with GlaxoSmithKline, Ernst & Young and in the UK.

With this varied experience behind me, I was happy to take on this role of Chairman. I consider it a great honour, as the bank is the largest and one of the most successful private sector banks in the country and is a key component of the financial sector of the country.

Q: With governance becoming the order of the day, what is expected of a non executive chairman and director?

A: Yes, the definition of governance has broadened and that awareness of risk has become a fiduciary obligation. Directors can no longer be passive participants. In general I would say a NEC’s role would be to give leadership to the board to ensure the board works effectively, discharges its responsibility and to facilitate good policymaking and execution. The latter, that is execution of policy, is the province of the management.

Q: Commercial Bank is today the most profitable bank and the largest private sector bank. What are the reasons you attribute to this success?

A: Very broadly, the bank’s success must be attributed to the leadership given by the Board, the untiring effort of the CEO, his team, employees and to many others over the years; also equally to our very loyal customers, to our very supportive shareholders and the regulator. The bank is so fortunate to have a team committed to deliver the very best to all our stakeholders. I am one of those people who believe that the team that fields the best players wins.

Q: In your view, what role should big shareholders play generally in a listed business entity?

A: It is good to have shareholders who are strong and supportive but at the same time it is imperative for a company to have the space to take its own decisions and is not expected to play catch-up with policies and decisions, which are thrust on them.

Q: What about the role of the board of directors in a public company?

A: A board’s usefulness is only as good as its understanding of the firm, and that is usually best found on the shop floor. Good thinking comes when data is looked at from a number of angles and what data are turned into decisions.

Typically, boards have defined risks as strategic, operational, financial and compliance. That universe too needs to be widened to include intangibles, such as company reputation. Board discussions should be where board members examine information shared in terms of historical context and future opportunities.

Out of these discussions should emerge a shared point of view about what decisions the firm should take to create lasting value for all stakeholders. While boards cannot predict every event, it is no longer sufficient to follow a defined road map based on past events or assume the job has been well done by ticking the boxes.

Q: In the current context of economic and global pressures, what do you see as the opportunity for HR professionals to contribute to business success?

A: HR professionals are consumed with the hurdles they immediately face in doing the HR work itself. These are legitimate and relevant concerns. In recent conversations, a number of senior HR executives in Sri Lanka and oversees have shared with me that HR has forgotten these basics and without doing the basics well, the aspirations of business contribution remain unrealised dreams.

Therefore the challenge is to build credibility with the line managers so that the company can make better investments that help the business reach its goals. We need to push HR professionals to see the outcome of their work, not just the work itself.

Q: What is expected of a leader in a business establishment?

A: I would say giving strategic direction, getting the right people into the right places, getting them the resources they make a case for and then getting out of the way, but ensuring the team is on track to deliver what they promised. So essentially, helping people and organisations to perform and develop.

Q: How can organisations ensure future growth and continued stability?

A: I have a personal mantra, that is stick to what you are good at and run a tight ship.

Q: What is your view on CSR?

A: If you are running a private enterprise, your first obligation is to your customer, investor and to your employees to deliver a product and service at a sufficient profit to keep the enterprise going. But when a company becomes successful, I think it is a good idea to invest in the community. Because I think it is not only morally right thing to do, it is good for the companies involved.

Q: Any words of advice for young people looking to become successful?

A: Don’t be trapped by dogma and attitude, have the courage to follow your intuition and stay focused and over deliver.