Growth orbits of a Business
- Start-Up-Consolidation-Growth Phase I : Delegation-Growth Phase II : Professionalization-Growth Phase III: Globalization
STARTING UP
IDEA EXPLORE CONCEPT DEVELOPMENT FEASABILITY STUDY RISK ANALYSIS PROTOTYPE BUSINESS PLAN
Starting-up
Entrepreneur decides to enter business Assembles finance Assembles technology (or a value proposition) Assembles people Creates Market
Owner is CXO
Owner is CEO, COO, CFO, CMO, CIO All value added activities are controlled by the
owner Works 16 hours Will take calls on dining table Even if he is making money still he is in Stage I He is ambitious but he feels stuck
“What got you here, won’t get you there”
- Marshall Goldsmith
Challenge-I
To move forward , he has to overcome “Challenge of Delegation”
Delegation is ability to assign work to various individual so that they can successfully complete value added jobs without extensive supervision
Delegation Requirements of
Delegation Competent Confident Trust-worthy
Why is it important? Company moves from a
task based work to a role based work
Company gets specialized competence/ knowledge
Entrepreneur can assign more time to improvements, strategy and growth
Barriers to Delegation Insecurity of Entrepreneur
Misplaced thought in 99% cases Feeling of loss of control
Delegation is not abdication Style
He is not you and will have his own style Inability to accept mistakes committed by staff
Find out WHAT went wrong and not WHO went wrong
Entrepreneur will keep people loyal to him (“ghar na manus”)
Loyalty to Whom?
People need be loyal to the organization and may/ may not to the entrepreneur
Entrepreneur should have the ability to distinguish between the two
?
?
Merit
Loya
lty
HL
L
H
How to over come these barriers
Understanding the value generation process
Creating a strong review process Daily and weekly reports Monthly review
Giving support when required
Finance Production Marketing QCPurchase
Customer
Challenge-II
Differentiate between
Products Service Systems Performance
Challenge-III Close Mindedness
Keep Challenging the initial preconception Do not assume the Customer Needs – Ask Keep Dialogue with your team
Challenge-IV Procrastination
Do not postpone just because you are the boss Prioritize Use Theoretical time as guideline Perform
Challenge-V Reinventing the Wheel
Do not deploy Resources in Reinventing the Wheel
Look for Partners / Collaborators
Challenge-VI
Mixing Personal and Professional issues
Challenge-VII Loosing Sight of Changing Scenarios
External Factors Internal Factors
Emerging Competition Quality
Govt. Policies Human Relations
Financial Markets Talent Retention
Currency
Weather
Challenge-VIII Recognizing – Cash is King
Sourcing Vs Investment Working Capital deployment Keeping eye on the Debt
Professionalization
For scalibility you have to professionalise This needs : Standarisation of company’s values and core
ideology Standarisation all systems and procedures Decentralisation
Advantages of Professionalisation Management team runs the businesss You can become rapidly scalable Organisation keeps on improving its culture,
systems and procedures Entrepreneurs then looks after strategy,
talent, core ideology, maintaining organisational standards
Barriers to Professionalisation
Lack of entrepreneur’s vision Not having right skill set and belief system
Discomfort of senior team in knowledge sharing Resistance to convert embedded knowledge into
coded knowledge
Loyal people do not like to see merit being valued more than loyalty
Role of a Coach
Help you to understand the challenge you are really facing
Help you to identify, in your unique context, how to overcome it
The coach has to dance in the moment- No cut / paste- what works for X may not work for Y
Helping you to move forward on your strength
Y
OU ARE GOING TO BE THERE
AND
YOU ARE HERE