“How do we solve income inequality, which is the biggest problem in the world today?” Vijay Govindarajan, a professor at the Tuck School of Business, said the answer lies in innovation and business strategy.
Govindarajan, known to his students and colleagues as “VG,” coined the phrase “reverse innovation,” a concept that he has spent his entire career developing, he said. At the center of this notion is the idea that the future of innovation lies in emerging markets. This contradicts traditional thinking about consumer markets, which are typically focused on producing goods for those who have the resources to buy them. In his work, Govindarjan examines what he calls the “non-consumer,” or one of the world’s four billion people who cannot afford to participate in the traditional consumer market. Govindarajan said that he sees an opportunity for businesses to convert these “non-consumers” into consumers by creating products they can afford.
Govindarajan said he comes from “humble beginnings” in India, where he lived with eight members of his family, only one of whom — his father — earned an income. He said, however, he does not look at this as a burden, but rather as an opportunity that taught him to learn how to face challenges.
“Having very modest beginnings really forced me to think of possibilities,” Govindarajan said. “If I had a lot of money, I don’t know if I would have that urge.”
He said his childhood role model was his grandfather, who spent hours reading for himself and educating Govnidarajan.
“He demonstrated to me that there is an inherent joy in learning,” Govindarajan said. “He had so much ambition for me, and I always worked to meet his expectations.”
Last week, the Harvard Business Review published an article by Govindarajan’s about his work titled “Business Can Help End Child Labor.” This article follows two other features of his published in the HBR, one of which challenged companies to conceive of a $300 house for the poor and the other on work with General Electric on making a particular medical device affordable.
These articles make up just a small fraction of Govindarajan’s work, which includes eight books and over ten articles that have collectively earned him a reputation as a legend in the worlds of business and academia, Clark Callahan, director of Tuck Executive Education said. Govindarajan said he believes in “compassionate capitalism,” in which businesses and society find strategies that are mutually beneficial.
“We must innovate capitalism by making it compassionate and responsible,” Govindarajan said. “This means that when Tuck [masters of business administration] students go to work for companies, they should also use their capabilities to innovate for the poor.”
After reading some of his articles, former student Parthipan Duraisamy Tu’16 said that he mentioned Govindarajan and his ideas in his application essay to Tuck.
Anant Sundaram, a professor at Tuck, praised the “clarity” and “profundity” of Govindarajan’s thinking. He said that Govindarajan is one of a few corporate strategy scholars whose ideas have influenced the thinking of CEOs. Sundaram noted that Govindarajan has much more to contribute to the field.
On a personal level, several students and colleagues alike have lauded Govindarajan’s “approachability,” as well as his “warm spirit.” Callahan said he met Govindarajan during his first week at Tuck in 2003 when Govindarajan was directing a leadership program for women, and he was impressed by his expert conversation skills.
“I remember sitting on a bench on the Dartmouth Green and thinking, ‘Here is this incredibly smart guy — what on earth are we going to talk about?’” Callahan said.
Callahan said that this first interaction with Govindarajan turned out to be an extremely “relaxed, easy conversation.”
Jennifer Desrosier Tu’16 said she was “touched” when Govindarajan reached out to her after the second meeting of his “Implementing Strategy” course to check in with her, as she was one of the only first-year students in the class.
“I was surprised he knew who I was given all of his responsibilities and that he had taken the time to think about one of his students,” Desrosiers said.
According to former students, Govindarajan constantly turns traditional thinking about business strategy on its head through the examination of specific case studies about a range of industries.
Duraisamy said that Govindarajan would present what seemed initially to be “an obvious question” to the class and then invert their thinking on the issue.
Both Michael Walsh Tu’15 and Desrosier said they had similar reactions to Govindarajan’s teaching. Both found themselves surprised by the novel approach Govindarajan took towards issues in his “Implementing Strategy” course in the winter.
“He has learning he wants to make sure you’re getting,” Walsh said. “He is very engaged in discussion which makes class enjoyable.”
Govindarajan, a member of the Tuck faculty for over 30 years, said he has dedicated his career to finding a balance between his teaching and research. He noted that his work concerns both observing patterns and “creating knowledge” through research and pursuing his “deep passion for teaching.”
The American Management Consulting Firms awarded Govindarajan with the Carl S. Sloane Award of excellence this past February for his contributions to the consulting field through leadership, development of intellectual capital and innovation.
