START UPS – DO NOT ‘KNOW IT ALL”

‘Ego’ the biggest obstacle to learning

Youth is committed to learn

One Man Show OR One Man Team Show?

Container Yard – An ‘OPPOSITE’ Case Study

Solution is as good as the person who works one out

Organisational Culture

‘Ego’ the biggest obstacle to learning

When my young colleague shares my posts on Leadership, Start-ups, Business & Consulting etc. on social media and particularly Linked-In, the response varies. When I upload the article I get very lukewarm response. The senior the people lesser the interest. A post that gets me about 1000 views at the most. When the very same post is shared by my young colleague with some comments he adds from his side, rarely he gets less than10K views. It’s not weird.

I analysed the reason. It is simple to understand and can be summed up in one word. RIGIDITY. The maturity required to understand and carry out a self-assessment is extremely difficult. A senior person says, it’s not for me, it’s my business and ‘I’ know it all. The pay-out to consultant hurts but the additional profit of 10% which he promises as ‘savings’ is conveniently taken as something he can do on his own. Rigidity, is thus explained.

Youth is committed to learn

YOUTH comparatively is learning daily. All they want is a mentor, a teacher a professional who will not take them through the academics but the practical side of business. Something they will learn after losing everything or after travelling for long on a timeline. They want to get the ‘reality’ today before they venture out. No one gets into mentoring due to one omnipresent fear, ‘the youngster will outshine me’. Result- a youth will work day in day out chasing a mirage. 1% succeed others fall by way side.

My consulting work takes me across all sectors, industries, services and most important, through the minds of owners. The more I consult, the more it amazes me. I share a very different experience of a start-up through a case study today.

One Man Show OR One Man Team Show?

With thousands of companies running successfully, will it be right to say that JUST because you got a commercial pilot license, you can fly entire aircraft by yourself? Where is crew, engineers, ground support, management, ATC, recipient airport and the most important component, the passengers? Put this logic to the business and a start-up.

WHY did you launch a start-up? This person launched a start-up because he hit upon an idea, concept, understanding or a business plan not thought of before or doing similar thing happening today in a very different way. At core is an unanswered question. Who all know or understand complete aspects of business? Just that person. Now he has to convert it to a commercial airliner. The first step to success or failure is taken by this person. This is watershed. He reaches the end to find out where he has reached. Either it’s a failure or it’s a success.

First grand step taking us towards failure is ‘I know it all’ attitude. From Concept, Development, Trials, Processes, B2B, Retail, Government Business, Business Development, Marketing, Sales, HR, IT, Brand Building, Trade Marks, Patents, Exhibitions, Finance, practically each and every aspect of business is “I know it all”. Specifics tasks of President, VP, GM. Mgr., Asst Mgr. to Customer Support. it’s all ‘I know it all’. How will the organisation grow when the guy knows everything? Rest team starts feeling pulled down and leave everything to the ‘know it all guy”.

Then there is the funding. He is the only one who gets it. He is the hero. He forgot that he started the start up NOT to get funding. He loses his way.

He ‘knows it all’ and hence must tell WHY DID HE FAIL? It should have been NOT a ‘One Man Show’ but ‘One Man Team Show’. I will separately write on this.

Container Yard – An ‘OPPOSITE’ Case Study

What happens when the entrepreneur of a Start Up has only money? Funds? And the solid trust that ‘money makes the mare go’? The guy was opposite of ‘I know it all guy”. He did not know anything except money.

An interesting case study today. I will give you the exact information as told by start-up owner. I was hired to carry out complete audit, recommend changes and also run it for six months. Simply put, I was asked to put things right.

Business– Container Handling and Management

Yards – Two yards in one state, one in another state 2000 km away.

Location of Registered Office – Third state.

Directors – Two, both at registered office, one of them was in charge but not involved in operations.

Operations – Under CEO-COO, alternated between two states.

Questions I asked Director with Answers

• Number of employees? I don’t know.
• Office staff at each location? I don’t know.
• Clients at each yard ? I don’t know.
• Letter Heads, Stamps, Cards, E mail ids, Mobile Numbers ? I don’t have.
• Current Account details? I don’t have.
• Monthly turnover at each yard? I don’t know.
• Rent, Electricity Bills, Lease Equipment contracts, labour etc. cost and contracts? I don’t have.
• Daily reporting by CEO-COO? Never does.
• Payments received details? I don’t have?
• Yearly Accounts Closing? I don’t know.
• Money Invested so far? Rs 3.25 Cr
• Has investment stopped? No, CEO-COO wants Rs 1 Cr 90 lacs to pay outstanding amount.
• WHY THIS PATHETIC STATE? We knew the CEO-COO from 11 years, he asked us to invest in Container Yards, we did.

I asked him, “What do you want me to do?” Help me from destruction, in short carry out a 100% audit.

What will you do? Stop reading further and write down your actions.

What did we do?

The ‘Container Yard’ Case Study posted by me is completely outside comfort zone of Owners, Founders, Directors, Management, Employees and every self-employed person.

In some or other form the ‘Container Yard’ exists in each and every person regardless of role. Relate it to your own job. Split your job in as many small heads as possible and question yourself.

We handled the ‘Container Yard’ case very carefully. We took two weeks and split each input under different heads. We would brainstorm, play different roles, challenge each role player and soon we had more that 1000 questions. These questions were split under BD, Marketing, Sales, Customer Relations, HR, Legal, Regulatory, Good Governance. Finance, Audit, Processes, Criminal, Civil, state laws, jurisdiction and 15-16 more heads.

Thereafter we prioritised questions within and under each head, interdependence with other heads was studied. The complex web was converted to a plan and submitted in 15 days.

It took 90 days to put entire business on track. It took another 180 days for recovering almost 50% of investment.

Last heard, they were close to recovering complete investment and planned to close the business and reinvest in a different business. Being honest people, they are bound to succeed.

Solution is as good as the person who works one out

Here is a bit peek into our working. Once our initial report was submitted and a plan conceived, the Board of Directors gave us a ‘go-ahead’. In the most tough terrain and weather at Haldia, where the temperatures were touching 42-43 deg and humidity could kill, I parked myself at the exit gate of the yard for three days, morning to evening and evening to morning. Mosquitos, no aircon, just dust, noise, loading and unloading. I just observed.

By third day, I had more than 500 questions, doubts, clarifications. I flew to the other state where another yard existed. Spent two days asking questions. I caught hold of brokers and started negotiating for additional yards. More questions were answered.

This was repeated with CA, Banks, and numerous clients. My team was attacking other fronts simultaneously. In ten days I knew exactly what was happening. I never spoke to CEO-COO even once.

Organisational Culture

What is so peculiar about businesses when it comes to “organisational culture”? No two companies are same. No two branches or country offices are same.

My consulting work takes me to companies with single office and small staff, single office with large staff, multiple offices of same company in one/different cities/countries. I make notes soon as I meet the head of branch and seal them to be opened once we finish our work after weeks. Most of the times results are absolutely same.

This CEO-COO of Container Yard Case Study was a pathological liar. He was interacting with management from three years and the owners were sinking in business each day. My interactions started and on 14^th day I submitted a sealed envelope to the Directors, to be opened on 90^th day, i.e., last day of contract.

From bank to clients, landlords to leased equipment owners, gate staff to customer support, office to marketing staff- everyone was taking cuts, delaying payments, falsifying documents etc. the company was losing Rs 27 lacs pm and was already down by Rs 4 Cr while the ppt in board room projected turnover of over two crores pm and hefty profits.

It’s just ‘that’ one person who makes or breaks your company. What good are you when you cannot set the culture?