Sustaining growth (TiE BBB)- Pramod Gothi


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Sustaining growth (TiE BBB)- Pramod Gothi

  1. 1. Growth orbits of a Business - Start-Up -Consolidation -Growth Phase I : Delegation -Growth Phase II : Professionalization -Growth Phase III: Globalization
  3. 3. Starting-up  Entrepreneur decides to enter business  Assembles finance  Assembles technology (or a value proposition)  Assembles people  Creates Market
  4. 4. 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
  5. 5. “What got you here, won’t get you there” - Marshall Goldsmith
  6. 6. 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
  7. 7. Delegation  Requirements of  Why is it important? Delegation  Company moves from a  Competent task based work to a role  Confident based work  Company gets specialized  Trust-worthy competence/ knowledge  Entrepreneur can assign more time to improvements, strategy and growth
  8. 8. 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
  9. 9. Entrepreneur will keep people loyal to him (“ghar na manus”) Loyalty to Whom?  H ? Loyalty  ? L L Merit H  People need be loyal to the organization and may/ may not to the entrepreneur  Entrepreneur should have the ability to distinguish between the two
  10. 10. How to over come these barriers  Understanding the value generation process Customer Finance Production Marketing Purchase QC  Creating a strong review process  Daily and weekly reports  Monthly review  Giving support when required
  11. 11. Challenge-II Differentiate between  Products  Service  Systems  Performance
  12. 12. Challenge-III Close Mindedness  Keep Challenging the initial preconception  Do not assume the Customer Needs – Ask  Keep Dialogue with your team
  13. 13. Challenge-IV Procrastination  Do not postpone just because you are the boss  Prioritize  Use Theoretical time as guideline  Perform
  14. 14. Challenge-V Reinventing the Wheel  Do not deploy Resources in Reinventing the Wheel  Look for Partners / Collaborators
  15. 15. Challenge-VI  Mixing Personal and Professional issues
  16. 16. Challenge-VII Loosing Sight of Changing Scenarios External Factors Internal Factors Emerging Competition Quality Govt. Policies Human Relations Financial Markets Talent Retention Currency Weather
  17. 17. Challenge-VIII Recognizing – Cash is King  Sourcing Vs Investment  Working Capital deployment  Keeping eye on the Debt
  18. 18. Professionalization  For scalibility you have to professionalise  This needs :  Standarisation of company’s values and core ideology  Standarisation all systems and procedures  Decentralisation
  19. 19. 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
  20. 20. 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
  21. 21. 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