Tuesday, October 25, 2005

Young organisation - Pains

The key element of growth in companies come from conscious and sub-conscious organisational learning. Conscious learning is a set of rules that are captured over the duration of adoloscence of the company. The do's and dont's that end up as part of employee handbook or employee appraisal formats and operational practices that are internalised. One of the important aspects of this consious learning is "the need for stability" in the thought leadership team. Constant change in that team causes temporal loss of the learning and hence the organisation is always relearning.

The other important aspect of the Organisational learning is the sub conscious learning. Great organisations live or die by this. It is rarely spoken about or written about, but this is what drives long term success. A key component of this sub concious learning would be - how is risk taking viewed by the core group of people ? How is failure judged ?

Monday, October 24, 2005

Vision Match with Venture Capitalist (?)

It is very important to partner with the right kind of team when you are building a world class enterprise.

Basic tenet of business is everything changes always. Hence you need partners who can match and keep in step with the change in vision. You will loose a lot of precious time if instead of rational defence of the vision - lot of time is wasted on irrational arguments.

When you potentially have investors who cannot match the speed of business and are more incremental thinkers - Business does get paralysed. Even though the business is doing incredibly well - The time and energy it takes to take the big leap and cross chasm cannot be underestimated. If that energy is chanelised only to facilitate an exit - A lot of time and energy is wasted.

Currently my own experience is such that if the amount energy I spend in facilitating an exit is chanelised for the betterment of the business - the return on investment of time could be stupendous. But on the other hand - getting the wrong folks off the train may be equally more important in the long run.