Intriguing as it may sound the reality is not too far fetched – Entrepreneurs even with best of intentions inadvertently suffocate the business with short sightedness resulting in a failed initiative. Business plan never fails! But implementation does!! – goes the common adage. The article elaborates 10 COMMON MISTAKES which management does while building/running organizations.
Mistake 1: MISSING THE BUS CALLED EVOLUTION!
Larger organizations are like DINOSAURS – they have grown to an enormous size but are not adaptable to rapidly changing business environments.
Technology is like fashion : it has a shelf life ; what might be a cutting-edge idea in a decade or so would have become totally obsolete.
Bigger companies face lots of difficulties in implementing changes – the adaptation should be BOTTOMS –UP rather than trickle down from above. The management should ACTIVELY involve all the concerned employees with proper training to enable complete absorption of changes.
SHOVING DOWN THE THROAT has always been a mistake down by many companies resulting in complete loss of the effort. DON’T NOT SIT ON YOUR LAURELS – look out for not only what your competitors are doing but also how the taste of your consumers are changing.
A good idea will be to search emerging trends in other verticals and see what synergy it has with your own business.
Mistake 2: THROWING ETHICS OUT OF THE WINDOW!
The more you sweat in the gym!! the less you bleed in the ring!! – there are NO SHORTCUTS for running businesses, one has to do it the hard way.
I am surprised many a times by the sheer lack of ethics in business dealings. Entrepreneurs should realize “IT IS A MARATHON NOT A SPRINT”, unethical behavior might win a battle but for sure the war will be lost.
Lack of transparency also creates an atmosphere of mistrust even in the organization resulting in severe damage internally. Business deals are primarily awarded based on your credibility in the market and a bad news travels faster than the speed of thought. PROTECT YOUR REPUTATION – it helps you sail during the tough times!!.
Mistake 3: EMPLOYEES ARE THERE MERELY FOR REMUNERATIONS!
I PAY : YOU WORK – is one of the most common found mentality across many companies globally.
It is a false notion – agreed that an employee comes on board based on the salary package & perks but it ends there only.
The extra mile so much required comes from heart not force.
In my first organization instead of a regular 9 hours shift we were slogging in the office for 15-16 hours a stretch because there was a connection with the company’s vision. First building block of any business is TRUST not only with the clients but also with your employees.
Employees are the brand ambassadors of any company and contribute immensely towards building a company’s reputation in the market.
A business venture is a journey undertaken not just by OWNERS but EMPLOYEES TOO.
Mistake 4: I AM SMARTER THAN MY CLIENT!
It is funny but true – many owners falsely assume that they can take their clients for a royal ride!!!
It can happen a few times (at the cost of your reputation) but in the longer run you are DESTINED TO FAIL. This particular notion comes from the thought that I KNOW MY BUSINESS BEST which is entirely false.
Business is not an ISLAND but more like a complicated mesh of METRO TRAIN – where every station is somehow connected to others.
It results in free flow of information and thereby constant flow of feedback amongst organizations.
ONE ANGRY CLIENT MAKE YOU LOOSE 5 MORE – with the advent of social media one false move might be the last nail in your coffin.
Respect your clients sensibilities and understand how best you can make their life easier. It is difficult to earn a client but so easy to loose one.
Mistake 5: MY WAY OR THE HIGHWAY!
Keep your EGOS (inflated one) @ Home – if you know all then why need anyone else to run an organization.
Simple point but never get across through many thick brained entrepreneurs. Self esteem is too often confused with ego – both of them are as different as chalk and cheese. You are as good as your last assignment – respect others ideas and see to it that how you can benefit from knowledge sharing.
KILL AN IDEA : KILL THE BUSINESS – many a times opportunity comes knocking at your doors but you turn a deaf ear cause of KNOW ALL ATTITUDE.
Like the first point if you don’t evolve you will be extinct and to change first you need to keep the false pride out of the equation. Empathy towards your employees is a sorely missed ingredient in many organizations –DON’T FALL IN TO THE EGO TRIP.
Mistake 6: GOSSIP DIE IT’S NATURAL DEATH!
Larger the organization BIGGER the gossips – empathy towards employees cannot be done keeping discipline at stake.
Numerous companies have suffered due to mismanagement of information channeling.
Good intentions can be completely misunderstood due to misinterpretation. It is all the more necessary during the growing stages for a company where lots of things are happening concurrently. Ideally information should be diverged from a single source or forum to avoid confusion.
Two-way communication set up is must to ensure that employees can come back with their respective queries. Gossip is a demon best nipped in the bud lest it becomes a hydra monster.
Mistake 7: HR is JUST A SUPPORT FUNCTION!
Agreed that theoretically HR is a support function but unfortunately it has been relegated to side walks in companies.
HR is not merely a tool to recruit new employees and send appraisal forms – a strong HR provides a third party forum for disgruntled employees. It also acts as a check for better management of senior employees.
Many a good companies have utilized it for better channelization of information as well as a forum for new ideas from the employees. A strong HR is a foundation base for a successful company.
Mistake 8: FINANCE IS FOR CA’s!
Often budding entrepreneurs fail miserably although their business plan was brilliant.
It is primarily because of the lack of financial management knowledge. One cannot acquire expertise in financial jargon but it is must that a leader / senior management is well versed with the details of financial health of the company.
Financial management cannot be completely handed over to CA’s and forgotten about.
It is very important for the owners/promoters to have a sound grasp of the cash flow etc. Every business plan or a process enhancement should be in conjunction with the financial planning for optimum results.
Mistake 9: MY COMPANY : MY MONEY : MY PROFIT!
GREED DEVOURS THE PERSON FROM INSIDE – the problem is rampant across small & medium size businesses where owners are unable to share power/money resulting in competitors winning in the long run.
The responsibility of a leader is to sow the viable seed with proper care and guidance in the initial stages and then let the tree grow on it own. Unwanted Control will ultimately hamper the growth of the organization.
Agreed that it was your money which started the company but it was the dedicated efforts of your employees which made it an organization you always wanted to build.
Let others too bask in the glory of their individual efforts and see how far the company will go. A TRUE LEADER BREEDS NEW LEADERS!!!.
Mistake 10: PUSH & GET DESIRED RESULTS!
SPARE THE ROD SPOIL THE CHILD – it was probably good in school but running an organization is a different ball game.
Unwanted pressure yields bad results – an entrepreneur needs to create a conducive atmosphere for everyone to work.
A leader is like a potter (one who makes utensils from clay) with one hand which is inside supports the utensil whereas the other firm hand gives shape from the outside.
Always remember – A Company is only a building with 4 walls and a roof ; it is the employees which makes it an ORGANISATION!!