The Strength in an Apology
I recently found myself introspecting on the message above. It led me to search my thirty-eight years of banking for an incident that truly embodied this spirit. My mind immediately traveled back to the Head Office and a high-stakes standoff involving a massive overseas construction project and a newly appointed CMD.
The Overseas Construction Crisis
At the time, the Government and the Reserve Bank were encouraging banks to assist companies earning foreign exchange. As the lead bank in a consortium, we had extended significant facilities for a massive project abroad, protected by an ECGC (Export Credit Guarantee Corporation) cover.
However, the tide turned. The company defaulted, and the guarantees were invoked. As the lead bank, we had to meet the liability and lodge claims on the participating banks. Then, a difficult decision landed on my desk: we needed to pay over ₹30 lakhs toward ECGC renewal premiums. The account was already heavily overdrawn, but if we did not renew the policy, the ECGC would void our claims. Worse, the other consortium banks would use our failure to maintain the collateral as a reason to shy away from their share of the multi-crore liability.
The Storm in the CMD’s Cabin
My colleague and I carried the file to our CMD, who was relatively new to our bank and came from an institutional finance background. On reading the file, he exploded. He viewed the premium as a drain on an already sinking ship and questioned our expertise with stinging coldness. Our attempts to explain the strategic necessity fell on deaf ears. The situation became deeply uncomfortable, and we were eventually asked to ‘Get Out’ of his cabin in a state of humiliation.
The Nobility of the Morning After
The next morning, we were summoned back. The tension was palpable; we expected further reprimands. When we entered, the CMD remained silent for a long moment. Then, he did something neither of us expected: he stood up and shook our hands.
"Gentlemen," he said, "I took the file home last night. I went through it thoroughly and realized the predicament we are in. By paying this premium, we are not just spending money; we are mitigating a massive loss. Without it, the entire consortium would avoid their share of the burden."
Then came the moment of true surrender. "I sincerely apologize for my rude words and my behavior yesterday. I did not sleep the whole night. I decided that the first thing I would do this morning was to call you both and express my regret."
We left the cabin with a deep sense of emotion. In my career, I have seen many men in power, but few with the courage and nobility to admit they were wrong.
The CMD practiced the highest form of honesty. He was "right" in his authority as a boss, but he "surrendered" because he realized he was wrong in his judgment and his conduct. He valued the relationship with his officers more than his own ego. The most senior leader is not the one who shouts the loudest, but the one who has the strength to say, "I am sorry." This is the "Management by Heart" that sustains an institution through its darkest hours.