Managing Cultural Change - Problems of SMEs
Often, we find that many organizations, especially SMEs, do not know how to arrive at various
goals and objectives. To arrive at proper goals and objectives, one needs strategic thinking. Most
SMEs are reasonably good at operational and field tactics, but are not fully aware of the strategic
aspects of the business. They do not have the inherent capacity to look at the problems
holistically. This is because, the senior family members occupy the crucial and critical positions,
not necessarily out of competence. Most of the first and second generation family members in the
past were not formally educated, qualified or trained. They were thrown into leadership positions
by default without formal managerial and leadership training. Management comes first.
Leadership later. Whatever they know about managing and leading the business is by
experience. However, doing the same thing again and again and in the same manner is not
experience. Things have to be done differently with changing times. Most succeeded in the past
because of the protected environment, with demand outstripping the supply and limited
competition from like minded competitors. They become 'business leaders' without the
appropriate attributes and qualities required. The older generation is not able to handle the
change management. The young and present third generation is well qualified. Their problem is
attitudinal. They continue the largely autocratic style of management. They often try to make an
odd concoction of their traditional and old work culture with some modern concepts. This hodgepodge
and DIY (Do it yourself) porridge does not lead to any cure. It leads to more confusion, chaos and
panic.
No change program can succeed without total cultural change. The cultural change has to be
'inside out'. The younger generation does realize the need to change the organizational culture,
but cannot change it in its entirety, because they face resistance from the old guard. When you
can't beat them, you join them is an old saying. The 'change agents' have to bring about a
paradigm shift. Unless the old guard retires or changes, things will continue to stagnate or get into
deeper quagmire. But the old guards are and will be firmly in the saddle, unwilling to let go the
reins. They believe that because they have done well in the past, they will be able to do well in
the future. Here lies the tragedy.
The SMEs do not have the necessary financial resources or the willingness to employ high
powered and talented professionals because they demand a higher pay packet which SMEs may
or may or be able to afford. A good professional will have to stake his hard built reputation by
joining a SME, where his or her competence may not be realized or valued or accepted. This is
akin to committing 'Hara-Kiri'. This is the reason most competent and good professionals do not
like to join organizations that are family managed and are SMEs. The large family managed
organizations are a different kettle of fish. In family managed organizations, whether large,
medium or small, the personal loyalty, sycophancy and trust factors more important than
Competence. There are always some exceptions, where you will find some
very competent family members and where professionals are encouraged, but such cases are
extremely rare.
In view of the above reasons, it is better SMEs engage competent professional consultants to
guide them. We run into another problem here. SMEs will get Mercenaries or Messiahs or Dependency
Builders. They are generally smooth talkers and feed the ego in people. SMEs generally fall for
such types and do not realize the value of a good, honest and ethical consultant who doesn't beat
around the bush and calls a spade a spade and sometimes a 'bloody shovel'. Another problem is that
they expect a management consultant to be a magician to get them out of trouble in a short time.
They expect years of muck accumulated to be shoveled and cleared in a few days time. It is quite a
Hobson's choice and not an easy one.
© May 2007. www.madgopes.com. All rights reserved.
Managing Cultural Change - To learn more about this author, visit Madhavan T Gopalachary's Website.
Like this article? Share it with your friends
|
|
Madhavan T Gopalachary
(Visit Madhavan's Website)
Madhavan Gopalachary, nick name "madgopes"
(g pronounced as in go) given by IIT
classmates, is a Mechanical Engineer and
an alumnus of Indian Institute of
Technology, Madras having passed out
specializing in IC Engines &
Thermodynamics.
He has nearly 35 years of experience in
the Corporate World. He started off as a
trainee and handled sales, marketing,
manufacturing, product management, profit
center management, strategic planning and
corporate development including R & D in
various organizations and at various
levels before becoming a CEO. His last two
professional assignments were at CEO level
before embarking to start management
consultancy business on January 01, 1998.
He has worked for British, Swedish MNCs as
well as very large Indian business houses.
He has spent a large portion of his time
from June 1998 till date in East African
Countries practicing as an independent
Management Consultant.
More details can be obtained at the
following web sites:
mmg.name/
mtg.html
mmgconsu
lting.biz/
Madhavan's articles can be accessed at www.madgopes.com
.
|
|
 |
|
|
|
|
![[Get Copyright Permissions]](http://license.icopyright.net/images/icopy-w.gif){kind=small}
“Our approach was very simple,” says Laliberté. “It was about creating a universal language. A show that will be attractive toward every people coming from all over the world. And that was a big thing.”
