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Ramblings of a citizen and experiences of an entreuprener

This is about my way of life. It has two parts, one is related to the world around me and the other part is my experiences as an entrepreneur. Check out our website www.shaktiindia.com

Thursday, August 13, 2015

The Reluctant Entrepreneur : Risk Management


Recently, I lost a young friend and colleague. He was in your face, larger than life and always positive. There was nothing too wide, high or difficult, everything was made possible. He had a never say die spirit. Yet, he is not amongst us, he moved on to a better place. In an instant. I cannot get the incident out of my head so as I write this I am thinking about him. It is my tribute to him.

No one should be surprised because there are only two things certain in life, Death and Taxes. Taxes we usually have under control one way or another. On taxes we may cheat and possibly get away but not adviseable. Death, why bother we never think about it. It is something that does not happen to me. Right, wrong...it can happen to anyone and anytime. The funny thing is we never plan for it, not consciously and I am being dead serious here.

Years ago, when were being audited for the Rajiv Gandhi National Quality Award, we scored pretty well on many parameters, operations, human relations, financial management etc but we fared quite miserably on leadership. My ego was stung for sure. When the audit team met me, they knew what my question main interest would be but skirted the issue. Finally, unable to contain myself I asked why my leadership scored low and how was it possible then for other parameters to be scoring high.

They explained very nicely that while my management skills were good, they did not see any successor, they did not see anyone being able to run the Company after me. They had asked the question “after Blaise who? The answer they saw was no one. If for any reason I could not make it to work, the Company would totter.

This came as a shock to me, I had never considered anything would happen to me. We did get a commendation award. Corrective action followed. A meeting was organised with the team. They agreed that the Company was important to them too, at that moment. They were working to satisfy their needs and not just to ensure my livelihood. So we decided to make the Company “Boss Proof”. The Company must run even if the Boss is taken out of the system. Today, many years later, we are closer to our goal, closer because the target is always moving.

The key aspect was we introduced systems and ensured decision making was more system or rule based rather than on “bosses” mood. Delegation was another area that was worked on. The problem with delegation is employee turnover. The person you delegate to decides to move on and out. You cannot control turnover but the problem is better addressed with use of systems. With systems in place the new person knows where he fits and can thus get involved faster, proverbial HIT THE GROUND RUNNING. Periodically, the setup needs to be tested, easy the Boss goes on a month long vacation. After returning, the fining tuning has to be done after review and grey areas resolved. This is a continuous process.

It had its benefits, one of our MNC customers was doing an audit and they ask questions related to continuity under different situations. They do not want any situation to occur where they will be left high and dry because the supplier has to stop or close down because the top management was indisposed. They are especially cautious in cases of family owned businesses.


I am not sure if my friend had done such an exercise but it is highly recommend that every business, especially vulnerable SME's undertake a risk audit and put corrective actions in place to reduce or mitigate the risk involved. My friend inspired this article, may his soul rest in peace.  

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