Myth Vs Reality
Research findings on SMEs around the world universally identifies the existence of an entity called “owner-manager”. It is the owner who takes up the role of the chief manager. The result: he gets entangled in day to day madness and is left with no time to strategic areas of business that is vital for scaling up.
SME owner is also faced with several myths and here are a few of them:
Myth #1: Management is common sense and is inherited
Reality:
Management is a specialized function and is refined through practice. Even big entrepreneurs like Mukesh Ambani went to get employed in other large organizations at the start of their career.
Myth #2: Managing sales force is simple
Reality:
Employees have a mindset that is at a level way below the Visionary wisdom of entrepreneurs. They look for short-term routes. It takes a person who has experience in handling them.
Myth #3: Management can then be handled by a mid-level executive from another SME or by my “munshiji”
Reality:
A mid-level executive from another company carries the ethos of His earlier company that can be quite different from this one. Different levels of scale, maturity of the organization, systems, etc. Moreover, he can not scale up and down basis the flexibility requirement of the role and post that an enterprising competent senior professional can deliver and align with the vision of the owner if he has worked at various levels in the organizational hierarchy.
The “munshiji”, on the other hand, is more focused on the cost as usually fails to empathize with the employees and messes up the “Human factor” of the business
Myth #4: Employees in pay-roll are more in control than an outsider(on demand)
Reality:
Employees are bound by salaries and hierarchy. They are your own till they are a part of the organization. Once detached, it is not easy to access them, especially if the incumbent or the organization needs them to reconcile some old issue. On the other hand, an outsider/vendor is accessible (at least against payment) in case the need arises. An example is a tax consultant Vs an accountant. An IT vendor vs an IT manager. A creative agency Vs the marketing head. Even if the contract is over, the relationship is ongoing.
Myth #5: Distributors can be managed by the owner himself
Reality:
When distributors have access to the owner, he is disturbed by every trivial issue. That takes a lot of management time and causes regular disruptions. Moreover, if some dispute arises, say overpayment, that is the end. There is no fallback option left for the organization.
Myth #6: Policy of the company (HR/ Operating) can evolve with time
Reality:
Employees look for firm policy from day1 irrespective of their background and class. Rules get flouted all around and the result is felt a little later. Therefore, policies must precede recruitment/induction. Such policies are best formed in consultation with someone who has experience in that and is aware of the pitfalls.
Myth #7: Key customer management can be managed by the owner
Reality:
I had an experience wherein an SME owner was planning a business radio cab. The vendors were Maruti and Tata Motors. Since it involved a large number of cars, the presentation was to be made by the VPs of the respective companies. There was a major lack of appreciation of the expectations and content in the initial stage to the extent that the project came to a standstill at one stage and my service was sought for. Many times, these people read the background from various social media and a familiar background often gives the initial vibe that they look for comfort.
Myth #8: Hiring people is not a big deal
Reality:
Hiring quality manpower who can be productive is not as simple. This is especially so when the HR structure is underdeveloped and restricted mainly to payroll management and compliance, which leads to continual attrition. There is a lot of bad-mouthing in the market place further making the hiring of quality manpower difficult. People with dubious backgrounds keep entering and keep getting sacked in no time. This becomes a vicious circle. A professional of repute and having contacts at agencies is the only solution in conjunction with a strong HR Policy and Operating manual.
Myth #9: Sourcing Quality and senior management is tough and almost not an option and also unviable.
Reality:
It is true as such employees are expensive. More than that why would they leave an organization to join a “question mark” organization? It is also difficult to find an all-rounder. People at mid-senior/senior level are function specialist-sales/marketing/operations/HR etc.
But CXO on demand allows the organization to hire a seasoned senior person with multi-function, multi-industry experience. One need not pay for 6 days a week, 25 days a month, or 300 days of a year. It can be done on a projected hourly basis depending on role and number of hours to be dedicated per week basis. Time can be allocated for a team meetings, presentations, training, strategic meeting with management, field visits, etc.
