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By:

Rashmi Kulkarni

23 March 2025 at 2:58:52 pm

Loss Aversion Is Why Your Good Idea Fails

Your upgrade is their loss until you prove otherwise. Last week, Rahul wrote about a simple truth: you’re not inheriting a business, you’re inheriting an equilibrium. This week, I want to talk about the most common reason that equilibrium fights back even when your idea is genuinely sensible. Here it is, in plain language: People don’t oppose improvement. They oppose loss disguised as improvement. When you step into a legacy MSME, most things are still manual, informal, relationship-driven....

Loss Aversion Is Why Your Good Idea Fails

Your upgrade is their loss until you prove otherwise. Last week, Rahul wrote about a simple truth: you’re not inheriting a business, you’re inheriting an equilibrium. This week, I want to talk about the most common reason that equilibrium fights back even when your idea is genuinely sensible. Here it is, in plain language: People don’t oppose improvement. They oppose loss disguised as improvement. When you step into a legacy MSME, most things are still manual, informal, relationship-driven. People have built their own ways of keeping work moving. It’s not perfect, but it’s familiar. When you introduce a new system, a new rule, a new “professional way,” you may be adding order but you’re also removing something  they were using to survive. And humans react more strongly to removals than additions. Behavioral economists Daniel Kahneman and Amos Tversky called this loss aversion where we feel losses more sharply than we feel gains. That’s why your promised “future benefit” struggles to compete with someone’s immediate fear. Which seat are you stepping into? Inherited seat:  People assume you’ll change things quickly to “prove yourself”. They brace for loss even before you speak. Hired seat:  People watch for hidden agendas: “New boss means new rules, new blame.” They protect themselves. Promoted seat:  Your peers worry the old friendship is now replaced by authority. They fear loss of comfort and access. Different seats, same emotion underneath: don’t take away what keeps me safe. Weighing Scale Think of an old kirana shop. The weighing scale may not be fancy, but it’s trusted. The shopkeeper has used it for years. Customers have seen it. Everyone has settled into that comfort. Now imagine someone walks in and says, “We’re upgrading your weighing scale. This is digital. More accurate. More modern.” Sounds good, right? But what does the shopkeeper hear ? “My customers might think the old scale was wrong.” (loss of trust) “I won’t be able to adjust for small realities.” (loss of flexibility) “If the digital scale shows something different, I’ll be accused.” (loss of safety) “This was my shop. Now someone else is deciding.” (loss of control) So even if the new scale is better, the shopkeeper will resist or accept it politely and quietly return to the old one when nobody is watching. That is exactly what happens in companies. Modernisation Pitch Most leaders pitch change like this: “We’ll become world-class.” “We’ll digitize.” “We’ll improve visibility.” “We’ll build a process-driven culture.” But for the listener, these are not benefits. These are threats, because they translate into losses: Visibility can mean exposure . Process can mean loss of discretion . Digitization can mean loss of speed  (at least initially). “Professional” can mean loss of status  for the old guard. So the person across the table is not debating your logic. They’re calculating their losses. Practical Way Watch what happens when you propose something simple like daily reporting. You say: “It’s just 10 minutes. Basic discipline.” They hear: “Daily reporting means daily scrutiny.” “If numbers dip, I will be questioned.” “If I show the truth, it will create conflict.” “If I don’t show the truth, I’ll be accused later.” In their mind, the safest response is: nod, agree, delay. Then you label them “resistant.” But they’re not resisting change. They’re resisting loss . Leader’s Job If you want adoption in an MSME, don’t sell modernization as “upgrade”. Sell it as protection . Instead of: “We need an ERP.” Try: “We need to stop money leakage and order confusion.” Instead of: “We need systems.” Try: “We need fewer customer escalations and less rework.” Instead of: “We need transparency.” Try: “We need fewer surprises at month-end.” This is not manipulation. This is translation. You’re speaking the language the system understands: risk, leakage, blame, customer loss, cash loss, fatigue. Field Test: Rewrite your pitch in loss-prevention language Pick one change you’re pushing this month. Now write two versions: Version A (your current pitch): What you normally say: upgrade, modern, efficiency, best practices. Version B (loss prevention pitch): Use this template: What are we losing today?  (money, time, customers, reputation, peace) Where is the leakage happening?  (handoffs, approvals, rework, vendor delays) What small protection will this change create? (fewer disputes, faster closure, less follow-up) What will not change?  (no layoffs, no humiliation, no sudden policing) What proof will we show in 2 weeks?  (one metric, one visible win) Now do one more important step: For your top 3 stakeholders, write the one loss they think they will face  if your change happens. Don’t argue with it. Just name it. Because once you name the fear, you can design around it. The close If you remember only one thing from this week, remember this: A “good idea” is not enough in a legacy MSME. People need to feel safe adopting it. You don’t have to dilute your standards. You just have to stop selling change like a TED talk and start selling it like a protection plan. Next week, we’ll deal with another invisible force that keeps companies stuck even when they agree with you: the status quo isn’t a baseline. It’s a competitor. (The writer is CEO of PPS Consulting, can be reached at rashmi@ppsconsulting.biz )

Aapulki—Where Young Minds Find a Safe Harbour

In an age where students are constantly juggling expectations, racing against deadlines, and battling unseen emotional storms, mental well-being often takes a back seat. While classrooms focus on grades and playgrounds shape physical fitness, the silent struggles of young minds frequently go unnoticed. Breaking this long-standing pattern, Nanded Education Society’s Science College, Nanded, has stepped up to the plate by launching an innovative initiative, ‘Aapulki,’ a dedicated mental health support center, under the guidance of President Dr Venkatesh Kabde, Vice-President CA Dr Praveen Patil, and Secretary Shyamal Patki, that places compassion at the very heart of education.


True to its name, which signifies warmth, care, and emotional closeness, 'Aapulki' offers students a safe space to open up and find their footing. At a time when pressure threatens to overwhelm, this initiative stands as a timely reminder that nurturing the mind is just as important as sharpening the intellect. What is Aapulki? It is more than a word, more than a programme, and far more than a room within college walls. Aapulki is the warmth in relationships, the quiet glow of affection, and the sense of belonging that makes one feel heard, understood, and cared for. Giving this very name to a mental health support center is not accidental; it is deeply intentional.


Recognising that students today are often caught between academic pressure and emotional turbulence, the college has taken a pioneering step by setting up a dedicated mental health support center named ‘Aapulki.’ Just as sports teachers are appointed at schools and colleges to nurture physical fitness, the college acknowledged the equally vital need for mental well-being. By reading the writing on the wall and understanding the silent struggles of students, the college has brought mental health out of the shadows and into the mainstream of campus life.


The idea of the ‘Aapulki’ center was proposed by renowned cardiologist and president of Nanded Education Society, former MP Dr Venkatesh Kabde. The choice of the name itself speaks volumes. The word carries compassion within it; it invites rather than intimidates. Dr Kabde believed that a support center should not feel clinical or distant but should draw students in, helping them open up without hesitation. When the name itself feels like a gentle embrace, half the battle is already won. The center is coordinated by Sangeeta Modi, with Chaitali Kakde providing counselling support.


The center was inaugurated on September 26, 2025, in the presence of Dr Venkatesh Kabde and Kunjama Kabde, along with the principal, Dr L.P Shinde, Vice-Principal Eknath Khillare, faculty members, and students. The occasion marked not just the opening of a facility but the beginning of a more empathetic academic culture.


At its heart, ‘Aapulki’ aims to support students navigating emotional storms and help them get back on their feet. In an age where anxiety, stress, and emotional overload are becoming part of everyday life, the center works as an anchor, enabling students to cope, adapt, and grow. It focuses on students’ emotional, mental, and academic development, helping them deal with pressure related to studies, relationships, and self-expectations.


The purpose of the Aapulki Mental Health Support Centre is clear: to safeguard students’ mental well-being by offering emotional support in a safe and trustworthy environment. It provides a space where students can speak freely about stress, anxiety, depression, and other psychological concerns without fear of being judged. Here, problems are not brushed under the carpet; they are talked through, worked on, and gradually resolved.


Initially, the center was started with students of Class XI and XII in mind. Over time, as the ‘Aapulki’ word spread and trust grew, undergraduate and postgraduate students from BSc and MSc courses also began to seek support. Counselling sessions may be individual or group-based.


Two guiding principles form the backbone of Aapulki. The first is privacy; everything shared by a student remains strictly confidential. The second is a non-judgmental approach; students are never labeled or criticised based on their problems. These golden rules encourage students to speak their minds openly and unburden their hearts without holding back.


(The writer is a journalist based in Latur. Views personal.)

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