Saturday, 22 February 2020

Why business head should differentiate performer and non performer?

In most of the small, emerging organizations, one of the patterns I observe is that the consistent performer is not getting recognized and rewarded suitably.

When I am saying rewarded means, it could be either monetary benefits or openly recognize his / her work and appreciation or giving more preference for providing exposure to training programs or learning opportunities in the workplace itself.

In some organizations, the business head determines the incentive or salary hike based on the loyalty measures, that who is staying in the organization for longer years.

when the business head does not differentiate the performer and non-performer through different means, it  creates the following impact on the organization

1. The performer is not getting the motivation to give his/ her best as human beings; everyone craves for recognition and appreciation. When his / her extraordinary contribution goes unnoticed, either he/ she loses interest in the work or leave for a better opportunity outside the organization.

2. when all the people are treated equally irrespective of the performance by the business head, it sends the message to all that mediocre performance is acceptable in the organization. Eventually, the organization becomes an average performance organization.

Differentiating the performer and non-performer boosts the morale of the organization and also helps to promote performance culture inside the organization. 

The practice of recognizing and rewarding the performer must be ensured and demonstrated by the business head whenever he/she spots the performance and performer for retaining the talent and to build a performance-oriented organization.!

Tuesday, 11 February 2020

Loyalty vs Intolerance to low performance


A dilemma most of the family-owned business head has is how to deal with a mediocre performer who is coincidentally the relative or loyalist to the family.

This is a real concern for the business head as today's mediocre performer might have been with the organization from early-stage and might have contributed to the growth of the organization even at tough periods. In today's scenario, the person may not be able to cope with business challenges and modern business practices. Sometimes the behavior and performance of the person affect the decision making capability in the organization and may impact the morale of the people who strive for delivering performance.

What should be the way out for the business head to deal with those people?

1 First, the business head must realize the fact that the purpose of the business to maximize all the stakeholder's interests. The organization exists to serve all, and the organization will exist only when it is competitive.No individual is vital than the bigger purpose of the organization. This realization is a must for the organization's head.

2. Second, the business head spends quality time with the mediocre person by giving the perspective about the change in the way an organization works in early times and the now in the competitive environment. The person's challenges to cope with the current business challenges need to be understood, and the necessary exposure can be given by training, coaching, and mentoring.

3. Also, the person must be given some time to perform well as per expectation mutually set. This time duration can be a year or a couple of years, depending upon the role the person plays in the organization.

4. If the person copes up with the modern business practices and delivering the expected results, that is a piece of good news for all, and the person can be groomed for further development.

Incase even after meticulous training, coaching, and development efforts, if the person is not willing to unlearn and learn, not intending to deliver the result as expected, the business head must speak up to the person and be prepared to separate the relationship and business.

If the business head prolongs the decision to separate the business and relationship, it will inevitably affect the overall business performance, which is not suitable for anyone. The survival itself will be challenging for the business head and the entire stakeholders of the organization.

The key is balanced, quick decision making from the business head is vital for the meeting the larger purpose of the organization.



Factors for Next Level Growth


Each organization is striving for next-level growth from its present status. The next level of growth could be

1. An exponential increase in Turnover
2. Getting into new market/customer
3. Getting into new  product line/services


Factors for next-level growth


Potential + Strategy + Leadership mindset + Practices = Next Level Growth

Potential:

the potential is a measure of the market size for the product or service, the unique value proposition of the product or service to the customer and the evergoing demand for the product or service not only in the existing customer or in exiting demography, but scalable to new customers and demographics

In my opinion, all the business is highly potential, given the worldwide customer base unless the product/service is made obsolete through technology.

Strategy:

A strategy is nothing but clarity on the resources, competency requirement, and action plan to get into next level growth. It is more about internal organizational capability development to cater to higher level growth. The action plan must answer the typical questions as below.

1. Resources required in terms of the fund, equipment, infrastructure, and people
2. Plan to reach out to new customers/ developing new product or services
3. Personal and organizational competency required to manage the challenges in the growth phase


Leadership Mindset:

This aspect is one of the prerequisites for any organization that looks for next-level growth. Mainly, the business head or CEO's mindset is essential. When I refer to mentality, it is more about the aspiration and belief of the business head is vital. For example, in one of the client operations, the service they offer is scalable to the global level due to their quality and price point. However, the founder is not interested in going for international reach as he believed that his organization is capable of serving only the local market. Even though he is very passionate about his product and service,  his contentedness and beliefs never allowed him to grow exponentially.

Practices and Action:

Even though the organization is highly potential, aspiration, and strategy, if the methods and actions are not in line with the plan, the organization will never get into next level growth. While aspiring for next-level growth, the organization should learn to give up some of the legacy practices and to learn new practices.

To sum up,

when the leader is aspirational, believed in the potential of the product or service given the global market, if the organization draws the master plan and adapts itself to change to new practices and action, NEXT LEVEL growth is always possible one.




Thursday, 2 January 2020

Three primary responsibilities of Business Head

As a business head or CEO of your organization, literally, you are responsible for all activities and outcomes in your organization. However, when the organization is growing, you may delegate some of the activities and responsibilities to others and you may overview of those responsibilities.

some of the responsibilities you can not delegate fully to others and you must be the primary responsible person.

In my views, three primary responsibilities of the business head of  any small, emerging organization are

1. Creating Performance-Oriented Culture

2. Maximizing the Profitability and make the organization future-fit or growth-oriented

3. Meeting all the Stakeholder's Expectation on time


Thursday, 14 November 2019

Business Head's dilemma: Profit or Growth ?


One of the dilemmas some of the small, emerging CEOs have is whether to focus more on profitability or looking for growth opportunities and scale up the business sales turnover.

The reason behind the dilemma is when the organization is small, most of the activities are directly monitored, executed by the business head and he/ she has direct control over profitability. They use to enjoy comfort. At the same time, there is an aspiration to grow big and also the fear of maintaining the same level of profitability and comfort. Because maintaining healthy profitability within a controlled environment is different from maintaining the same profitability when the organization is exposed to different customers, product lines, markets during the growth phase.

In my view, the business head should aspire and balance both profitability and growth for both short term survival and long term sustainability of the business.

Profitability is a measure of your efficiency, effectiveness and the excess cash will give a strength to take the organization to the next level. Whereas Growth, even though it seems to change management in the initial time, is required to generate more cash reserve for sustaining the business. when you ensure the higher or same comfortable profitability in a growth stage, that will help you to grow further into a new orbit. That is cycle and that is the nature of personal and business growth.

Hence both profitability and growth is required. There is no guarantee that the existing comfort or profitability is sustainable if the business is not exploring growth options.

Friday, 8 November 2019

paradigm shift required on the role of operator in small, emerging organizations

In some of the small, emerging organizations, operators who are working in machines or assembly lines are still perceived as Unskilled, and capability is restricted to loading and unloading of components. The other aspects of machine operators like quality checking, machine basic conditions monitoring, tool setting, and parameter monitoring or adjustment are taken by other teams like quality functions, programmers, setters, maintenance crew, and so on.

Here, more than the operator's skill and development, the mindset of supervisors or shopfloor managers needs to be changed. They believe that if we ask more from the operator other than necessary loading and unloading activities, the operator will not do or leave the organization. 

The flipside of this scenario is the operator will soon lose interest in the job as he/she is not learning anything new other than loading/ unloading. For any human being, the inner desire is to learn and contribute and get recognized for the contribution.

when the operator is not given an opportunity to learn more about quality, setting, and machine, he feels the lack of learning and looks for alternative or sometimes accept the situation as it is and becomes complacent.

From an organization perspective, when we have many people responsible for ensuring quality of the product and process adherence, machine basic condition monitoring, the ownership is totally shifted to someone, and they are not fully accountable for the causes of poor quality or poor maintenance. And the cost of manpower also increases, and engagement to the product or process quality becomes low at the operator level. That becomes a waste for the organization.

Since the operator is close to the job, he must be made accountable for OUTPUT, QUALITY AND BASIC HOUSEKEEPING OF THE SURROUNDINGS AND MACHINE. 

when we made this condition as a rule and develop the operator as one point source for improvement, this will enable the operators to learn the skill about quality and machine basic requirements monitoring, and the organization also benefits from waste elimination and reduction.

The starting point is how the organization defining the roles and responsibilities of the operators and the change in the belief system that the operator is capable of developing the required skill if it is warranted.


Friday, 13 September 2019

Cultivating winning culture in small, emerging organization


Who is cultivating culture? In one of my client organization, the CEO starts his monthly review meeting first by reviewing the employee engagement aspects like safety issues, employee participation levels, recognition, and then only he reviews other business deliverables. Over a period, "employees first" becomes the culture of the organization. The people under him also are giving first preference to employee engagement aspects. Similarly, in another organization, the business head always keens at delivery performance irrespective of any factors. His team also oriented to the practice. Now the culture of the organization is to deliver target" somehow" irrespective of profitability, quality level, or process adherence. Even in the home, if parents watch TV while eating, then the children also follow the same, then, over a period, it will become a culture of that family. The point is that the person at influencing level cultivates the culture either good or bad, not the other way around as followers cultivate the culture. Irrespective of title, you are the leader in your work or home. Influence positive, right things consistently, that will become a practice & culture.


In the personal front, what you do consistently becomes a habit. Similarly, in an organizational setup, what you do always becomes the culture.

culture is nothing but how people behave, relate to your business challenges in the organization.

It is the leadership team that is establishing the culture. When I say leadership team, not only CEO, senior-level managers, whoever is leading a team are leaders. When they demonstrate consistent behavior in some aspects, that will become the culture of the organization.

For example, if the leader believes in data transparency in everyday interaction, then the team also start thinking in data collection, analysis, sharing, and taking decision based on the data.

is it difficult to change the culture?

At the outset, anything is difficult in life, but possible with conviction. That is applicable in organizational culture setting and change the culture as well !!