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

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?

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