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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    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
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? 
       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
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
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
THERE
                             TO BE
                     E GOING
           Y OU AR


          AND


      ARE HERE
YOU
Sustaining growth (TiE BBB)- Pramod Gothi

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Sustaining growth (TiE BBB)- Pramod Gothi

  • 1.
  • 2. Growth orbits of a Business - Start-Up -Consolidation -Growth Phase I : Delegation -Growth Phase II : Professionalization -Growth Phase III: Globalization
  • 3. STARTING UP  IDEA  EXPLORE  CONCEPT DEVELOPMENT  FEASABILITY STUDY  RISK ANALYSIS  PROTOTYPE  BUSINESS PLAN
  • 4. Starting-up  Entrepreneur decides to enter business  Assembles finance  Assembles technology (or a value proposition)  Assembles people  Creates Market
  • 5. 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
  • 6. “What got you here, won’t get you there” - Marshall Goldsmith
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. Challenge-II Differentiate between  Products  Service  Systems  Performance
  • 13. Challenge-III Close Mindedness  Keep Challenging the initial preconception  Do not assume the Customer Needs – Ask  Keep Dialogue with your team
  • 14. Challenge-IV Procrastination  Do not postpone just because you are the boss  Prioritize  Use Theoretical time as guideline  Perform
  • 15. Challenge-V Reinventing the Wheel  Do not deploy Resources in Reinventing the Wheel  Look for Partners / Collaborators
  • 16. Challenge-VI  Mixing Personal and Professional issues
  • 17. Challenge-VII Loosing Sight of Changing Scenarios External Factors Internal Factors Emerging Competition Quality Govt. Policies Human Relations Financial Markets Talent Retention Currency Weather
  • 18. Challenge-VIII Recognizing – Cash is King  Sourcing Vs Investment  Working Capital deployment  Keeping eye on the Debt
  • 19. Professionalization  For scalibility you have to professionalise  This needs :  Standarisation of company’s values and core ideology  Standarisation all systems and procedures  Decentralisation
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. THERE TO BE E GOING Y OU AR AND ARE HERE YOU