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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
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
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