A Promoter’s Dilema : MSME Special!

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Prologue:

Transforming organization might appear to be an overwhelming responsibility for a business owner, but that is because the outlook of majority of  entrepreneurs toward transformation is flawed. For transformation to be effective and enduring, promoters must  learn to first change themselves. My recommendation to entrepreneurs is to first unobtrusively introspect and engage in self transformation. This is one thing they have in complete control and can change it fastest.

 

If you desire to transform your organization, start with yourself first…

 

Personal transformation is all about learning to change our own character, values, and dogmas to become a more responsive individuals. It is an “emptying process” of letting go of ego, diffidence and fastidiousness. The detoxifying transcendental journey of self-transformation is steered for ‘Being Different’.

Yet, easier said than done!

 

The episode:

In a  teak-sculpted lavish boardroom with an arresting oceanic view surreptitiously peering between the folds of overlapping heavy drapes — there rested on an ornate chair, Mr. Doshi, the aging owner of an emergent mid-sized company. Just few minutes back, very reluctantly he whispered a delicate question to me which left me with tangled threads of limited vulnerable probabilities.

For long, Mr. Doshi was harbouring a serious thought of replacing his only son with a high-profile professional from the same industry and was deeply troubled that the issue would end up in an ugly family turbulence. His close confidants warned him to rather initially induct him in the system reporting to his son so as to circumvent the vexing resistance from family front.

He mulishly probed me, “So…what do you think? It is high time to run this company in professionalized way.”

I had heard a lot about his son who was something of a fable around the company corridors for his tempestuousness and stony attitude. Many senior members were often critical of his unwanted imposition. After years of frolicking as accompaniment to his father, he was unfailingly pitching himself for the top role at every occasion.

Regrettably, most of the promoters take succession as an unavoidable and difficult chapter in their life that unwillingly takes place on some undefined day. Whereas the entire progression plan can rather be implemented as a well thought-out qualifying process over a defined period of time. Majority of patriarchs never retire because they never plan. It is evident that progenies born with affluence are often improvised to manage complexities of the business. At times, their lack of accountability and casual approach towards critical business judgements puts the business in difficulties. 

Often, I vehemently advocate to my clients that a family member may acquire a position in the family business as a gift from the family, but role obligations attached to that position needs to be ‘hard earned’ by him over a period of time. Succession is a process and not an event. 

There is something naturally fascinating about Indian entrepreneurs…

Typically, most of the first generation business owners, deep within, are convinced that only they can successfully lead the organization . They are right also. An organization is nothing but dream realization of a founder’s vision, insights, and character.  I have always admired their struggle to keep the business buoyant through absolute hard work and ingenuity. However with time and growth, they often have to learn to give up the control over the organization. Few do it very willingly and effortlessly, whereas others go through a elongated learning curve and embarrassingly disturbing experiences.

Professionalism is not an experiment…

In my consulting assignments, the most common mandate from promoters is to infuse “professionalization” in their business. unfortunately, the closest definition of professionalization for most of promoters is to hire professionals to run the company. I think, every business owner, at some time in his business journey, nurtures a fantasy of professionalizing his family firm without realizing that inducting  professionals is just one potential constituent of professionalizing a family business. Besides, professionalism is not person specific. It is an integrated and all-inclusive approach towards dealing with business realities. Yet, in the race to prove the point, they run after big names in the industry for heading their key functions without realizing that it demands significantly modifying their own approach and behaviour. In majority of cases, their entire struggle is to possess few trophies just for its ornamental value. Initial changeover happens with a ‘grand show’ but soon business owners start tagging those assembled crowns as over-expensive and non-contributing outsiders. With every passing day , the feeling propagates into a serious doubt over their expediency, further unduly shadowed by questions on their level of commitment and loyalty. On the other hand, a professional also feels utterly out of place in that environment where major decisions are owner-centric, ad hoc, and purely on gut feelings. The mutual antipathy lingers for a while till either of them resolve to call it a day. I have seen many such organizations with long reeking trail of parcelled-crowns. Paradoxically, promoters always take such planned-parting as personal insult to them. But the reality is that it’s going to happen.

In most of MSMEs, professionals leave jobs for only one reason: Adjustment issues with the promoter… 

In most family businesses, either there is (often) limited autonomy offered to a professional or he is loaded with completely renounced expectations (It is like an empty duty – responsibility without authority). Moreover, owners directly reach out to the lower-level employees with exhaustive commands, thus undermining and further pulverizing the legitimate position of the professional  in the given hierarchy. The fortuitous blend of external professionals with family ownership/ inner-circle employees inevitably creates rumbling hitches. Both of them have hyper tendency to evaluate each other. The inner-team would always have some lucidly articulated justifications to prove their own rectitude against the professionals. Actually it unfolds in many ways – the unconcealed and specific issue-based mutual intolerance to a company wide organized encoded dissent. Most of the time inner-circle employees and old cronies, surreptitiously but systematically, traduce against the professionals. They would never let a professional feel included in the organization.

Are you launching a professional with unstated internal antipathy to fail him… 

A family business is less likely to be successful with external professionals till business owners learn to give-up and are willing to surrender abundant space for experimentation with necessary margin of errors. To achieve a long-term growth and sustainability, a well-timed induction of professionals in the company is essential. Business owners have to consciously overcome the myopic approach towards inclusion of professionals to stay ahead of the competition. On the other hand, they should objectively evaluate the premeditatedly lodged tittle-tattle by inner circles for deceitful purposes.

Often, first generation patriarchs don’t let go that easily. For them, every addition is weighed on cost-benefit ratio. They get into some sort of personalized competition to prove professionals wrong. On the contrary, I find many second generation entrepreneurs much more open about welcoming professionals in the organization.  They are more educated, organized, technology savvy, and process driven to mentally equate with the professionals.

First, accept…

As a business owner, it is critical to realize that success needs a rich fusion of professionals and family employees. The professionals do have an ability to bring an objectively detached perspective to the company’s decision making without unjustifiably prejudiced by their own personal agenda. They would have an independent approach towards important matters and that may not possibly echo the company’s traditional mentality. It is always a conscious trade-off between inducting a potential professional or continue with an incompatible family member. It certainly takes thoughtful contemplation and preparedness. 

With accelerated growth, there is no better option for a business owner but to consider inclusion of right professionals into their family ‘inner circle’. The real challenge is to cultivate an environment of vulnerable trust that endures even inadequacies of the incumbents. An environment, where a professional feels like investing his entire energy towards the objectives of the company.

Happy Diwali!

 

Happy Diwali!

A beautiful manifestation embodying integration of soul, mind and body for the pursuit of joy…An inward journey from darkness unto light— empowering us to commit ourselves to virtuous deeds and brings us closer to divinity.

This festive season, I wish you have a great time with your family and friends. May the light of glowing diyas, brings lots of good fortune and positivity!

Wishing you boundless success, bliss, and prosperity on the occasion of Diwali.

With Personal Warm Regards

Bhagwat Yagnik

It is hard to be just!

 

For any functional leader ‘being objective’ is a leading differentiator.

 

Regrettably, this quality is utterly defunct in majority of functional leaders. You can be “objective” only when you are beyond any personal prejudices, slanted reactions, inflexible creeds, and convenient interpretations. Very similar to the portrayal of a ‘Sthitpragyna’– an individual who is gifted with unwavering mental stability…An individual whose judgements are outside of his own predispositions.

Objectivity breeds trust and loyalty in the team. It brings predictability in the system.

I am not talking about “neutrality”, but about the “fairness”.

Standing for truth in a given circumstances.

It calls for sacrifice. It calls for quality of courage.

Sadly, at workplace, leaders use objectivity as an “expedient opportunity” without realization that how destructive this attitude is to morale fabric of the team. Objectivity is selectively dilapidated by majority of professionals to manipulate emotions of their team members. However, people see through such gimmicks. Subordinates are customarily quick in observing inconsistencies. Therefore, wisdom lies in being fair all the time. A leader must learn to play his role with gratitude.

In the corporate world, very conveniently, policy and procedures are tweaked for selective purposes. Expediently fit-in different rules for different people. Interpretations are altered for suitability and favours…Dependability is bargained for discriminatory benefits…Backward rationalizations are preserved for the rainy day.

Do you think such leaders will ever earn credibility?

The answer is big ‘NO’.

Every individual is born with a deep sense of objectivity and a strong aspiration to fight whatever is treated as dishonorably.

I often suggest to the senior leadership teams in my client organizations:

Stop capitalizing your intelligence for manipulating people. It is more like staging a stripped theatrics…a display of immature ostrich mind-set.

Today, having quality of courage to stand for objectivity is perhaps imperative to the leadership role… people find it worthy of reverence and emulation.

I know, being just is hard. But it can be achieved by expending your life-energies more resolutely.

#Transformation #Leadership #NextOrbit

Awakening the inner light…!

 

DeepamJyoti Parabrahma

DeepamJyoti Janardana 

Deepo  me hara tu paapam

Deepa Jyotir Namostute 

 

Diwali, the ‘Festival of Lights’ is unfolding its cheerful sparkles…!

 

The festival signifies the triumph of light over darkness. It is time to energize our outlook and strive for the splendour in our life.

On this festive occasion of Diwali

Next Orbit

wishes you

Uncountable Loving Thoughts and Happiness in Abundance

Let the feelings of hope and determination alleviate your soul…!

Shubham Karoti Kalyanam, Arogyam Dhana Sampada 

Shatru Buddhi Vinashaya, Deepa Jyotir Namostute 

With Personal Warm Regards,

Bhagwat Yagnik

Managing Partner

Next Orbit Consulting LLP

www.bhagwatYagnik.com

babayagnik@gmail.com

+91-9810899919/+91-124-4288476

Follow Me:@babayagnik/Facebook/LinkedIn/Google+

Self-Aggrandizers: Wake-Up!

“Enlightenment is ego’s ultimate disappointment.” 
– Chogyam Trungpa

en.wikipedia.org

The corporate corridors are chockfull of Self-aggrandizers.

The self-absorbed professionals, menacingly proclaiming their own exaggerated importance, power, or reputation. They evaluate their prominence by the immensity and pull of their fiefdom. Their ego surreptitiously entraps them tightly. Even brilliant professionals, unknowingly reach to a stage where they stop listening to any inputs. They strongly and only believe in their own views.They severely suffer from a ghoulish “I-Me-Mine” syndrome.

The unappealing manifested symptoms of such distorted tendencies are so obvious and all around at our work places. Today, it is almost like an epidemic. The only branded method of decreeing our dominance over others. At times, it is masked and tacitly refined. In certain cases, the magnified individuality, also genuinely drive them crazy so as to show off their supremacy to others. When professionals are so obsessed with their own gainful projections, they are likely to misplace their focus on expected role commitments.

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Invoke Planet Pluto!

I love metaphors!

A metaphor enigmatically whispers a connection.

For me, Pluto is an apt allegory for Transformation.

 

Astrologically, Pluto is associated with renewal and rebirth. Pluto conveys releasing of dormant power. Pluto is planet of expiration and resurgence…redeeming our own existence and emerging out as much resilient being. It represents endings and new beginnings, as well as transcendental growth and reawakening.

 

Traditionally, many dynamic entrepreneurs have set the golden path for the “entrepreneurial upsurge” in our country. Unquestionably, today the same “entrepreneurial spirit” is being acknowledged as the momentous driving force of the Indian economy. However, the changing business environment has overturned all professed successful business practices of the past. The changing scenario is increasingly demanding an altogether different approach towards sustaining successful business enterprises. Interestingly, transforming such archaic entrepreneurial convictions, is becoming the most decisive factor for the survivability and progression of an enterprise in the global environment.

 

Indian Promoters are extremely good at generating revenue and managing complexities of the business, but are like a “walking catastrophe” at leaving behind an evolved organizational legacy. Today, MSMEs just can’t relax with incremental developments, they must drastically re-evaluate their strategy to grow, sustain, and remain. Many do not even realize their own growth potential.

 

If an enterprise is not ready to embrace desired changes needed to survive, it will inescapably collapse.Even a deep entrenched MSME, when faced with major disruptive challenges, cannot change the course that swiftly. I believe, majority of MSMEs need redemption.

 

Yes! It is time for MSME universe to invoke its planet Pluto…the sphere of transformation.

A simple check list for all the entrepreneurs, who are contemplating to jump into big next growth orbit, is given below:

 

Evaluate if your business frequently airs following manifestations?

  • Frequently shifting business priorities

  • Dwindling behind competition without any justifiable reason

  • Finding skills/knowledge of existing employees too short for the futuristic dynamic growth dreams.

  • Sluggish and faltered execution of significant growth projects.

  • Stretched unplanned twirls of deliberations followed by highly hectic pressure for overnight realization of results.

  • Never-ending meetings with kaleidoscopic focus on business realities.

  • Excessively restrained and fortified for experimentation.

  • Facing high attrition of star professionals with large residual mass of old deadwoods.

  • Unenthusiastic about integrating new technology initiatives

  • Highly centralized at top. Every decision needs final approval.

  • Suffering from silos of functional empires.

  • Lots of time invested in crisis resolution and unproductive activities.

  • When you exactly know “what”, but unable to envisage the “how” part.

  • Apparent complacency and indecisiveness prevails in the culture

  • Every time team fails to meet panned and agreed monthly business targets without any palpable rational

  • Decision making grinds to a halt in absence of senior functional leaders.

  • Customers appreciate your intentions but unhappy with your actual service/product.

  • Essentially employees are indifferent towards company’s failure or success.

Picturize your company and evaluate…even if 30 % of the statements are reflecting true reality of your business…it is time for you to embrace the transformation.

Realize your warning signals!

Change is inevitable in an organization’s life. A caterpillar has no idea what is to become of it. Often it can be difficult to know where transformation will lead us until after it is complete. Transformation suggests significant shifts in an organization’s thinking, behavior, systems, and culture. But, many enterprises, undervaluing the significant gap between current business thinking and a transformed entrepreneurial approach, are strained for continued existence in competitive arena.

How to transform an organization?

What are the constituents of the transformation and how do leaders lead their organization through the change processes?

Next Orbit is a boutique consulting firm, capable of amalgamating rich professional experiences and exclusively designed transformational processes for MSMEs.

Next Orbit provides MSMEs with transformation, advisory and consulting services across multiple industry sectors.

We, at Next Orbit, are equipped to bridge the gap between an entrepreneur’s dream and the business realities. We help an entrepreneur in building his/her transformational leadership skills and driving expected results.

Regardless of your business complexities, offering tangible business impact is our promise.

(The author is Managing Partner at Next Orbit Consulting LLP and can be contacted at babayagnik@gmail.com/www.bhagwatyagnik.com)

 

Transformation is not an isometry!

www.en.wikipedia.org

Do you remember your physics?

I do!

Thanks to my highly “numerical-obsessed” provincial high school teacher in a laidback humble small town in Rajasthan.

I still remember the definition of Isometric Transformation.

An isometric transformation is a transformation that preserves the distances and angles between a pre-image and its image.

Put simply, in an isometric transformation the image is exactly the same size and shape as its pre-image.

Today, while dealing with organizational transformation in various enterprises, I have resonated that simple statement again and again “transformation is not an isometry”.

Transformation does not mean just “doing things differently”. The process is much deeper, it means “becoming different”. It demands metamorphosis of old patterns. A transformation program is a radical, meticulously commissioned process, that builds an organization’s capabilities to change, and ensures its alacrity towards looming business challenges.

It is actually a new paradigm scenario. Organizational transformation positions an enterprise to a new direction and revitalizes it to higher orbits of readiness.

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Next Orbit : Visioning Change

We owe our success to You…!

We have always assisted you in realizing your dreams…!

We are delighted to share our company’s advancement with you

Yagnik Management Consultants Pvt.Ltd

is now

Next Orbit Consulting LLP

Leading Transformative Change

We are rebranding our company as Next Orbit to rightly align our distinctiveness with the expertise we offer to our client organization

We are here because of your unceasing support

A new chapter has begun at Next Orbit

Translate Your Future with us and Evolve…!

Personal Warm Regards
Bhagwat Yagnik
Managing Partner
NEXT ORBIT CONSULTING LLP
www.bhagwatYagnik.com
babayagnik@gmail.com
+91-9810899919/+91-124-4288476
Follow Me:@babayagnik/Facebook/LinkedIn/Google+

 

Enigma of Silos…!

“Silo builds the wall in people’s minds and creates the barrier in organizations’ “hearts.”
Pearl Zhu,

www.wikipedia.org

Organizational silos are like cultivated citadels within a company.

Last week, I had an intense discussion on this topic with the Managing Director of a large manufacturing organization in Mumbai. While sipping revitalising Yorkshire Tea, inside his well-ornamented sea-facing office at Nariman Point , I could feel his raw vulnerability in infuriated outburst.  “I don’t see that it’s worth my time to act like an umpire between my HODs. They are the ones that make things happen around here and shockingly, same HODs are incapable of getting along like two grown-up mature adults. They are behaving so childish. Honestly, I do not have luxury of time to waste on such petty issues.”

I instinctively asked him, “Who is responsible? Who has let allowed such bargained and warped relationship concreted among them ? Who should be blamed for this quandary?”

Silos are usually defined as groups of employees that lean towards working as self-regulated units within an organization. Essentially, when employees are left to their own comfort zones, they tend to get colonized and ingrain their own distinctly insulated culture within the organization. Often, the forbidding caustic influence of such silos indefensibly pedestals dysfunctionalities in most organizations. Conceivably, silos are manifested symptoms of a larger embryonic organizational disorder. These contagious symptoms creep-in gently and then spread-over the organization as a “cure-resistant” ailment.  

The intimidating enigma of silos has been argued and debated in brooding corporate board rooms for eras without twigging to any comprehensible antidote. Silos, in reality, are tolerated disobedient excuses. We can easily conclude that an organizational culture that tolerates or emboldens silos, often gets wedged up in the vortex of personality linked skirmishes. 

An effective leader always try to put an end to silos in the organization so as to circumvent following direct repercussions:

  • Breeding of brutishly inward looking coteries

  • Tangled priorities

  • Restricted optimization of individual potential

  • Controlled flow of obligatory information

  • Clogging of synchronized decision making

  • Unnecessary crowd-piling (of scares resources)

  • Engendering distrust and reinforcement of self-focused defiance

  • Creating ghoulish competition

  • Condensed positivity.

  • Blurred functional transparency

  • Lumping spirit of co-creation, cooperation, and agile culture

  • Nourishing power starved characters

  • Exasperating unbiased employees

For me, functional silos are not accidental and do not emerge overnight.

The provenance is always at the top of the organization and lashes downwards as spiteful streams in the hierarchy.

The big question is: Are we unintentionally encouraging and rewarding people for effectively manipulating organizational vulnerabilities? Sometimes, the competing work climate and scientifically micro-calibrated reward system in the organization, inadvertently amplify juvenile behavior in the organization.

The territorial hostilities are result of unconsciously fostered belligerent leadership team at the top that essentially echoes the conceded moral beliefs in the organization. Perhaps, the silos are an unscrupulous leakage of supremacy tournaments. Besides, even power-mongered employees of the siloed functions, get their bosses’ tacit backing for the advantage of nursing their fiefdoms. Unfortunately, the pretentious and despotic leadership of the company, securely attributes it to functional incompetence, indistinct cross-functional processes, immaturity of people, and poor team work. Of course, these factors do play a significant role in compartmentalization of the work culture, but (predominantly) leadership team is singularly accountable for humanizing an effective resolution for such issues.

So, what a CEO should do to win-over the underwired silo mind-sets:

  • Build a shared unified purpose in the organization

  • Tear-off silos by being transparent and talking straight  

  • Shift focus from “me & my department” to “organization” first

  • Stop rewarding only “vertical excellence” in the organization

  • Encourage multiple horizontal team projects with common goals

  • Educate employees to dismantle (psychological) functional boundaries

  • Introduce planned rotation to avoid people becoming a tribe.

  • Encourage common celebration-platforms to enhance social networking

  • Reassure people to share and accept their mistakes

  • Redirect an “internally competitive” mind-set to prove the edge over competition

  • Nip it early, before it gets institutionalized

  • Confront hard with the pollutants responsible for surreptitiously engineering silos

Everything ultimately boils down to the leadership and sharing culture in the organization. Providing an enjoyable and seamless organization culture should be enough motivation for people to rally around a common purpose.

Yes! It is a tough cultural challenge to address silos. Often, an organization does not have maturity and systematic processes of questioning such behaviour. Yet, the leadership team is singularly responsible for creating a work environment that enables engagement, empowerment, cooperation, and innovation.They are accountable for transforming an organization from fraternity-entrenched work climate to highly integrated agile work climate. 

Want to challenge the status quo?

Let’s have a probing dialogue. My reflections will certainly enable you to pinhole the bulging dysfunctionality in your organization.

 

 

A very Happy New Year ….!

hny2

Wishing You A Very Happy and Prosperous

New Year 2017.

Your success and happiness lies in you

Life never stops giving us chances to achieve what we long for;the duty is ours to make the most use of the opportunity.

With Personal Warm Regards,

Bhagwat Yagnik

Founder & CEO

Yagnik Consulting Group

​Leading Transformative Change…!​

www.bhagwatYagnik.com

babayagnik@gmail.com

+91-9810899919/+91-124-4288476

Follow Me:@babayagnik/Facebook/LinkedIn/Google+

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Cheers to the new year…!