Education and Enterprise

In the Mahabharata, Abhimanyu entered the Chakravyuh but could not make his way out. He was not short of valor or intent but lacked knowledge on how to tackle it.  Business world is replete with examples of people who made it big by the sheer dint of their hard work. Education was often not their primary strength. Dhirubhai Ambani’s success is a case in point.  

There are two schools of thought - one that feels education has no bearing on one’s capacity to setup and run an enterprise, the other which believes education to be the very foundation element for successful enterprises. The issue is completely debatable and there will be enough examples to prove both thoughts.

However, companies like the Reliance Group did not grow simply due to the sharp business acumen, instinct and common sense of its promoters. They systematically developed a professional team to take on the world. Every successful MNC or small business today has educated and experienced people at the helm of affairs.

Chanakya’s role in establishing the Maurya Empire by methodically defeating the Nanda Empire is historical. He was the advisor to Chandragupta Maurya and his son Bindusara. A learned man in the field of economics and politics, he guided the emperors to their success. 

The most important function of education at any level is to develop the personality of the individual and the significance of his life to himself and to others. ~ Grayson Kirk

Building an Enterprise

Setting up an enterprise requires a vibrant skillset and intellectual capacity to navigate the system by complying with each and every aspect.

Theoretical knowledge to practical application

Suppose the enterprise is setup to make DC motors. One will need to understand the science behind DC motors, its application and how to make good quality motors.

Functional Knowledge

What are the various functions necessary to run an enterprise? What skillset will be required to complete the functions? How many people will be needed to manage the function? These are generic concerns.

Accounting, Legal and Statutory Compliance

Every enterprise however small or large has to compulsorily adhere to each applicable legal and statutory requisite without fail.  We cannot claim ignorance as the cause for any non-compliance. The legal hassles in such cases can often lead to closure of the enterprise altogether. The onus is always on the entrepreneur in-charge.

Management Skills

Certain people have very good idea and knowledge of say automobiles and can setup a good garage to fix vehicles but might not possess the necessary management skills to run the establishment successfully. Decision making is an everyday aspect of a business. Not all decisions can be made on gut feel, guess work or biased assumptions.

Without education, one can start a venture but will most definitely need structured learning and knowledge to scale-up and sustain.

Value of Education

In school, we were taught a Shloka in our Sanskrit class which encompasses the true subtext of education.

vidyA dadAti vinayaM, vinayAdyAti pAtratAM |

pAtratvAddhanamApnoti, dhanAddharmaM tataH sukhaM || 5 ||

Translated into very layman terms it means knowledge gives discipline, from discipline comes worthiness, from worthiness one gets wealth, through wealth one accomplishes good deeds and from that derives joy. All these are necessary for enterprise to succeed.

We often confuse between literacy, education and knowledge. They are not frivolously interchangeable. Literacy means able to read and write, while Education is developing a skill through accumulation of knowledge through learning. It equips us to think. Knowledge is the outcome of our perception, learning and reasoning. Education helps us to understand our surroundings and often invoke innovation.

The one real object of education is to have a man in the condition of continually asking questions. ~ Bishop Creighton

With education we build a compendium of theoretical knowledge. There is a logical flow in our education system which structures the knowledge brick by brick and not in random packets.

Simulation is a new method for learning. It is used in medical science, for learning to navigate aircrafts and trains even in case of financial modeling. This use of technology is quite contemporary and helps develop strong conceptual clarity.  

Learning through case studies is another method which can train people to improve their though process and cognitive skills.

Many curriculum have compulsory factory visit and training to expose students to real life situations and motivate them to get a first hand feel. This is like a driving school where one hones driving skills.

With education our plinth is made stronger and prepare us to face the challenge of operating an enterprise successfully. We learn to understand markets, consumer preference, change in technology trends and global economic fabric where our enterprise finds its existence.

In German society, it is said that the education system is designed to create thinkers and doers. It is the job of the thinkers to learn, create plans, allocate resources, create backup plans and basically provide for all possible outcomes of any event. The plan is created in such detail and split down to sub-segments that comprehension is effortless. The doers are expected to use their skills to simply execute the plan without improvisation or questions. This is often said to be the attribute which gives them supremacy in many fields.

Education opens your mind to seek answers, to more questions, or philosophy in life, about our approach towards the enterprise, our customers and their wants, how we treat our suppliers and employees, respond to the environment and create a sustainable venture. We can create an enterprise without education but will not be able to sustain for too long.

The principle goal of education is to create men who are capable of doing new things, not simply of repeating what other generations have done - men who are creative, inventive and discoverers. ~ Jean Piaget

Book Review: From Planning to “Getting Things Done” - EXECUTION by Ram Charan and Larry Bossidy

From Planning to “Getting Things Done”  

Larry Bossidy and Ram Charan with Charles Burck.

EXECUTION – The Discipline of Getting Things Done

Random House, London. 2002. pp. 288, Rs. 591 (Flipkart)

 

There are many books available on Strategic Planning, Human Resource Management and Development, Employee Recruitment and Motivation, Retention Skills, Change Management, Leadership Skills and Competition etc.

Bossidy and Charan’s Execution however talks about the crux of all organization’s path to excellence – the ability to Execute the Well-laid Plans to Realize the Vision. 

This book has nicely divided into three logical parts that talk of the need for execution, the basic ground requirements and the three core inter-linked processes for successful execution.

Most often we use a lot of data, numbers are crunched, scenarios built and multivariate forecasting done to create a grand plan but in the end it falls short of expectations. We end up achieving too little; projects are riddled with cost overruns, or in worst case scenario lose our competitive edge in the market. The problem lies with the capability of the leader to execute larger strategic plans into operational deliverables at each and every functional level with the same amount of tenacity and pace. A leader’s responsibility is to get the job done and not sit back to take feedback while pondering on mega issues. She or He has to be at the scene taking stock of the situation and making rapid course correction. In today’s world, we are talking of weeks or months to make or break performance. The luxury of an entire financial year or more is long gone. The book echoes the message that it makes a lot of difference when people see the person in action regularly monitoring and maneuvering progress. This is the key underlying message in the book.

The authors have very aptly pointed at three core necessities to build an execution-driven environment.

The Leaders’ behavior is of prime importance. How well the leader knows the business and people will decide the depth and breadth of strategic planning and operational execution. A leader should be able to set clear goals; break it down to tasks and assign the right priority to each task. The ability to mentor subordinates, decide an apt reward system and follow through at every level of execution is critical for success. A leader should be visible hands on person and not a hallowed figure accessible to a selected few. The ease with which leaders are able to make decent connect with the people and processes will be the defining factor for the business outcome. And here the authors also stress on the ability of the leader to honestly and objectively be aware of his/ her capacity and capability.

Another crucial factor is a culture that drives the need to be execution – oriented. Leaders have to bring in the necessary cultural change in the organization setting it in a framework for implementation.

But the most essential part is staffing each position with the right person. The authors point at the need for leaders to know the people before recruiting them so that the leadership gene pool is strong and vibrant. Thus, HR’s role becomes more critical and serious in these circumstances.

In the third and final section of the book, the authors stress on the linkage of three core processes – people (structure), strategy and operations. Strategy can be executed if the people who are assigned the task are suitable and have the same culture of urgency to deliver. Manning right people means both in terms of quantity and quality. This is a very good point since often companies are understaffed and performance falters. The role of HR is more dynamic today than the earlier times when they had a more passive function. Not only are they responsible for recruitment and retention but to manage the non-performers.

The ultimate goal of the people process is to create a “leadership pipeline” that is always green. Often organizations are single leader dependent which is an unsustainable proposition.

Execution can be fine tuned when people, strategy and operations are intertwined and planned in conjunction. The strategy to make the business grow based on competitive forces or decision to expand and in which direction depends on the vision of the leader. What are the issues in making the strategy work and how can it be counteracted is part of the strategy thinking process. Operation is more hands – on about budgets and building the operational plan. The section on operational plan is very apt and worth emulating.  

This book is quite refreshing and unique in this genre as it has been written by drawing the strengths of people from both ends of the spectrum – one who is a business advisor, author and speaker and other is a man who has worked in stellar organizations with remarkable performance record. Ram Charan is a well-known business advisor, speaker and author, admired for this practical real world perspective and solutions. He was a Baker Scholar at Harvard Business School where he earned his MBA with distinction, as well as his DBA. Lawrence Bossidy (Larry) has worked in companies like Honeywell International and General Electric Credit (now GE Capital Corporation) as their CEO.

This book is highly recommended for established and existing business leaders and young upcoming leaders who are being groomed for greater responsibility. The dialogue of both the authors interspersed in the book removes the monotony which usually plagues most of the business books.

Industry Insight (WICMA) Why SME Owners need to have tough business controls

Recently my article was published in WICMA's magazine - Industry Insight.

Have a look!

Time for an MBA Renaissance

This article has been published in Indian Management, a magazine of AIMA.
The article talks about the issues affecting management education and the probable solutions.
This has been co-written by Dr. Renuka Garg, my guide and Head of the Department of Management Education in Veer Narmad South Gujarat University Surat and myself.
I learnt something new about the use of 'a' and 'an' while discussing with the Editor about the title.

Bankability

This article was published in the November 2011 issue of TISA.

Data Management in SMEs

Technology news in SMEWorld Dec 2010 Issue

A common doctrine of life is that everything that takes birth goes through its cycle of activities and then dies allowing others to take its place. In Hindu mythology, “God” is in the form of Brahma, Vishnu and Shiva. All three of them have specific function as a creator, preserver and destroyer. The importance of each is equal for maintaining a balance in nature.
A similar analogy can be drawn in our everyday business life where data and information (either in hard copy or soft copy format) have to undergo the cycle of creation, maintenance and destruction. It is not a choice but a “must”; a necessity.

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