Structure of Indian Organisations are mostly for convenience than purpose. While some Corporates boast being Global, thinking remains local. Being local has its own advantages. This goes with modern adage - Think Global Act Local, meaning leveraging local advantages for capitalising Global opportunities.
Structure of Indian Organisations are mostly for convenience than purpose. While some Corporates boast being Global, thinking remains local. Being local has its own advantages. This goes with modern adage - Think Global Act Local, meaning leveraging local advantages for capitalising Global opportunities.
A Board is supposed to be the Governing and Directing Body of an Organisation. Most of the Boards are in existence to meet statutory requirements, consisting of either family or friends. This may serve the purpose but may not be enough. Organisation Design including structure is of strategic importance. This has to be understood in overall perspective of the Purpose of the Organisation, which essentially should be Profitability & Growth.
Managers Maintain Value, Leaders Add Value & Entrepreneurs Multiply Value. But it’s people, irrespective of who they are and how they are connected to the Organisation, are Value to the Purpose, and hence the Organisation. Structuring an Organisation strategically begins with the formation of BOARD. A diverse thinking Board will compliment efforts and produce results whereas like thinking has its own limitations. Most of the Indian Organisations irrespective of Size and Formation, BOARD consists of only likeminded members. This may not be right, as it will add little value if there is mere acceptance than consensus.
Growth comes naturally when adversaries are present and critically question decisions & actions, including performance of promoters. Freedom to question should be a culture of the Organisation, playing an appropriate Angel’s Messenger or Devil’s Advocate, as the need demands. Right Constitution of the BOARD will send Right Signals to the market bring in Right kind of people into the Organisation.
In today’s circumstances, given the cost & ownership of having dedicated employees, a BOARD might well serve the purpose till such time an Organisation blossoms full-fledged and can afford to have good employees on board. Not only cost, quality of Decisions & Business Processes can be better. This should be Objective of the BOARD, irrespective of being Statutory or Advisory. Focus on Promoters abilities can be achieved once a proper Board is in place.
BOARD is a necessary driver for an Organisation to progress beyond people limitations. In fact, a Strategic BOARD isolates the Organisation from people deficiencies and propels Organisational Performance in terms of Growth & Profitability. Members are usually field futuristic experts, bold enough to question status-quo. Compatibility should be the least of the priorities for a performing Board.
BOARD performance should be akin to an Organisational Performance, and it cannot be otherwise. For It all depends on Business First or Family First.