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By:

Rahul Kulkarni

30 March 2025 at 3:32:54 pm

Governance Is Modernization

By now, if you’ve followed this series, you’ve done something rare. You didn’t walk in and start “fixing” blindly. You understood the equilibrium. You reduced the fear of loss. You made the new way easier than the old way. You created rhythm. You built reputation and credibility. You learned to negotiate, build coalitions, digitize in small steps. And the previous article, Rahul spoke about the hidden requirement: psychological safety because without truth, every dashboard becomes theatre....

Governance Is Modernization

By now, if you’ve followed this series, you’ve done something rare. You didn’t walk in and start “fixing” blindly. You understood the equilibrium. You reduced the fear of loss. You made the new way easier than the old way. You created rhythm. You built reputation and credibility. You learned to negotiate, build coalitions, digitize in small steps. And the previous article, Rahul spoke about the hidden requirement: psychological safety because without truth, every dashboard becomes theatre. Now we close the season with the most grounded definition of “professionalization” I know. It’s not ERP. It’s not fancy roles. It’s not a new org chart. Because when power is unclear, everything else becomes unstable. Which seat are you stepping into? • Inherited seat: you may have formal authority, but decision rights are often still “family-managed”. • Hired seat: you may have responsibility without authority. That is the fastest path to frustration. • Promoted seat: you may have influence, but your boundaries are fuzzy, and that creates daily conflict. Different seats. Same reality: the business runs on invisible boundaries. The property boundary line Think about a property boundary line between two neighbors. When the line is clear, people may still argue but disputes are limited. When the line is unclear, every small thing becomes a fight: • “This is my parking space”. • “That tree is mine”. • “This wall belongs to who?” In a company, decision rights are the boundary line. If the boundary is not clear: • approvals become political • escalation becomes emotional • responsibility becomes a trap • people start bypassing • and “urgent” becomes the excuse for everything This is why modernization fails even after you digitize. Because digitization creates visibility, and visibility creates conflict if authority is still fuzzy. Governance sounds heavy, but it’s actually simple When people hear “governance”, they imagine board meetings and legal language. In MSMEs, governance is much simpler: Who can decide what, within which limits, and what happens when there is a conflict. That’s it. If you can answer those three questions, you’re already professionalizing. Why governance matters more in family-influenced firms In many Indian MSMEs, decisions are not purely operational. They are emotional and relational. A pricing exception may be linked to a relationship. A hiring decision may be linked to loyalty. A capex purchase may be linked to ego and legacy. This is not “wrong”. It’s just real. But when the company starts growing, this style doesn’t scale. It creates confusion: • managers don’t know what they can commit to • teams don’t know whose instruction to follow • the owner gets dragged into everything • and the new leader becomes the “bad cop” without any real authority There’s a light-touch academic way to describe this too: Jensen and Meckling wrote about “agency” issues … when decision-makers and owners have different incentives. The fix is not more control. The fix is clearer decision rights. The three decision rights that change everything If you do only three things in governance, do these: 1. Pricing authority Who can approve discounts? Under what limits? What is the exception path? 2. Capex thresholds Who can approve spending? Up to what amount? What needs owner approval? What can be delegated? 3. Hiring approvals Who can hire? Who can approve headcount? What roles require founder/family sign-off? These three create a surprising amount of stability. Why? Because they cover money, investment, and people … the three biggest emotional zones in MSMEs. What happens when these rights are not clear? You’ll recognize these symptoms: • people take decisions and later say “I thought it was okay” • approvals happen through WhatsApp messages that nobody can trace • the owner says “Why did you do this?” after the fact • managers get blamed for decisions they didn’t have the authority to make • teams bypass the system because “it’s urgent” • and your new “process” becomes optional again It’s not because people are undisciplined. It’s because the boundary line is not drawn. Field Test: Negotiate and document three decision rights This week’s field test is not a workshop. It’s a negotiation. If you try to enforce governance without safety, people will hide. If you try to digitize without governance, conflict will explode. This 12-articles season wasn’t about “fixing operations”. It was about how an incoming leader enters a legacy MSME without triggering immune response and then builds rhythm, credibility, coalition, safe digitization, and finally governance. Now that you can enter the system and steady it, the next macro-arc becomes obvious: How do you build the middle layer that sustains it … so the company doesn’t fall back into founder-dependence? That’s where real scale begins. (The writer is a co-founder at PPS Consulting. He is a business transformation consultant. He could be reached at rahul@ppsconsulting.biz.)

Autopsy of an Empire: Why Jadunath Sarkar’s Fall of the Mughal Empire continues to unsettle


Sir Jadunath Sarkar (1870-1958)
Sir Jadunath Sarkar (1870-1958)

Every empire produces at least one great historian who anatomises its exhaustion with a completeness that neither predecessors nor successors quite match. For Rome, it was Edward Gibbon who dissected the long senescence of the western Roman and eastern Byzantine power through six volumes in ‘The history of the Decline and Fall of the Roman Empire’ with prosecutorial irony between 1776 and 1788. For Habsburg Spain, it was Fernand Braudel, whose vast and astonishing ‘The Mediterranean and the Mediterranean World in the Age of Philip II’ (1949) revealed in the slow rhythms of the longue durée how geography, climate, commerce, debt and war steadily hollowed out imperial supremacy.


For India’s early-modern twilight - the violent passage from Mughal universalism to colonial overlordship - it was Sir Jadunath Sarkar who, in his magnificent four-volume ‘The Fall of the Mughal Empire’ subjected the Mughal Empire to a forensic scrutiny from its death throes in the 1730s to British paramountcy in 1803.


Given December 10 marks Sarkar’s 155th birth anniversary, it is useful date to turn to the greatest work produced by the ‘Bengali Gibbon’ and the enduring lessons it has to offer for today’s India.


The four volumes of ‘Fall of the Mughal Empire,’ published between 1932 and 1950, stand as the most sustained, most dramatic and most relentlessly documented narrative ever written of the unravelling of India’s long 18th century, charting the decline and fall of one empire (Mughal), the zenith and fall of another (Maratha), the rise of a third (British) while documenting the sudden rise and abrupt fall of the Jat kingdom of Bharatpur.


Sarker’s masterwork is a rarity in that it is technically complex form a historiographical point of view while being viscerally thrilling at the same time in detailing the long Anarchy that raged through the troubled 18th century.


If the classic five-volume ‘History of Aurangzib’ (1912-24) had established Sarkar as a giant, ‘Fall of the Mughal Empire’ made him a colossus among Indian and world historians. It took Sarkar twenty-five years to complete Aurangzib. It took him another twenty-five to plan, research and execute Fall of the Mughal Empire – its title a riff on Gibbon’s Decline and Fall of the Roman Empire.


Sarkar confessed to the ordeal with characteristic austerity, describing the “immensity, variety and confused character” of the sources; the thousands of laconic Marathi despatches whose dates had to be established; the Persian manuscripts whose readings had to be corrected and rearranged before even “a single page of narrative could be composed.”


This was archival labour of a Herculean order, as Sarkar himself routinely translated entire manuscripts Persian, Marathi, French, Portuguese (learning the language in order to translate them) before he allowed himself to write a line.


Given the monumental scale of his achievement, it has become almost reflexive to compare Sarkar to Edward Gibbon. Yet the analogy flatters without explaining the true difficulty of Sarkar’s task. When Gibbon began composing ‘The Decline and Fall of the Roman Empire,’ he inherited the accumulated labours of centuries by ancient historians like Tacitus and Livy, Ammianus Marcellinus and Suetonius, the Church Fathers and the Byzantine annalists. Rome had already been quarried to bedrock by generations of scholars.


Sarkar, by contrast, was forced to cut his marble out of living rock. He confronted an archive still in situ, scattered across princely states, decaying libraries, private households and half-catalogued Persian collections (most of which were painstakingly collected by Sarkar himself, who had one of the rarest archives of Persian manuscripts in India).


Sarkar’s narrative begins with the empty splendour of the later Mughal Emperor, Muhammad Shah’s reign (1719–1748) which received a gruesome shock in form of the ‘Persian Napoleon’ Nadir Shah’s invasion of 1738–39 and the spreading anarchy across Rajputana, Malwa and the Punjab. The second volume reconstructs the titanic Afghan–Maratha struggle that culminated with the calamity at Panipat in 1761, while the third and fourth volumes carry the story through the rise of Mahadji Scindia, the struggle for control of the Delhi puppet-emperor Shah Alam II, the debilitating Holkar-Scindia rivalry and the final establishment of British paramountcy in 1803.


Sarkar opus remains unmatched as a forensic reconstruction of how India’s last great pre-modern state disintegrated. It is not a patriotic epic, not a lament for vanished grandeur, hardly a morality tale written for easy applause but a cold autopsy of political death.


Throughout this monumental Indian ‘game of thrones’ - replete with arch-intriguers, conniving adventurers and rapacious invaders – Sarkar produces dazzling set-pieces of battles forgotten and famous, with descriptions of terrain and tactics, of palace conspiracies and revolutions that remain etched in one’s mind. Be it the Battle of Gangwana in 1741 during the last days of Sawai Jai Singh or Ram Chatauni in 1750, where the imperial Wazir Safdar Jang and his Jat ally Suraj Mal clashed with the Afghan Rohillas, or the Battle of Patan (1790) between Scindia and the Rajput rulers of Marwar and Jaipur, Sarkar’s command of terrain, logistics and tactical movement is precise while his descriptions are cinematic in their rendition.


For Sarkar, rivers, broken supply lines, exhausted cavalry marches, zamburaks and matchlocks are not background props but active agents of history. Nowhere is this more terrifying than in his account of the Third Battle of Panipat - the crowning jewel of opus. Here, the Maratha charge under Sadashiv Rao Bhau detonates across the page in his hands:


“Suddenly, the tiring on the Maratha side ceased… a thunderous roar of Hara! Hara! Mahadev! was heard… a vast cavalcade of 13,500 men heaved tumultuously like one gigantic billow of the ocean… dashed in resistless sweep upon the Durrani centre…”


His pen-portraits of the great and small, noble and ignoble – from Baji Rao 1 to Mughlani Begum, from Ahmad Shah Durrani to Jaswant Rao Holkar - are brilliantly rendered, brimming with pitiless, razor-sharp aperçus.


Speaking of Wazir Imad-ul-Mulk, the poisonous king-maker of Delhi in 1755, Sarkar writes: “He clung like a helpless infant to the breast of the Marathas…but Deccani armed aid was a very costly thing.”


On eighteenth-century Rajputana, torn by internecine feuds among Bundi, Jaipur and Jodhpur, with the Sisodia Rana reduced to a cipher after Raj Singh’s death in 1680, Sarkar writes: “Rajputana became a zoological garden with the barriers of the cages thrown down and the keepers removed.”


His description of Ahmad Shah Abdali’s horrific ravaging of Mathura and Vrindavan in 1757 is bone-chilling. Here, Sarkar was sharply critical of the Marathas for failing to protect Mathura and Vrindavan Yet, he was unstinting in praising their incredible valour at Panipat.


Sarkar refused to mourn the Maratha defeat as a civilisational catastrophe, which earned him the ire of Pune’s historians. To him, Panipat was a political and military collision between rival imperialisms. Indeed, he notes that much of northern India - the Jats, Rajputs, Sikhs and the peasantry feared Maratha victory as much as Afghan conquest. Maratha fiscal rapacity and strategic bad faith had exhausted local goodwill.  While unflinchingly describing their brutalities, Abdali and Najib-ud-Daulah earn Sarkar’s ‘admiration’ in battle for their tact, cohesion and decisiveness.


His dissection of the Maratha polity is equally severe. Mahadji Sindhia’s brilliance is charted alongside his financial distress, Tukoji Holkar’s cantankerous obstruction, and the ruinous cabinet politics of Nana Phadnis. “Nana Fadnis,” Sarkar writes, “was jealous of Mahadji Sindhia’s rise… and deliberately kept the Holkar–Sindhia quarrel open.”


Sarkar’s eye roves incessantly - north to the Punjab, south to Poona, west to Rajputana, east to Bengal - registering each tremor in the disintegrating body of the empire.


Sarkar had a strong aversion not merely to untruth but to intellectual laziness, which makes him the target of first the Marxist historians who dominated the post-colonial stage and regional chauvinists who now bristle at his refusal to mythologise Maratha virtue or Hindu unity.


‘Fall of the Mughal Empire’ explains the modern Indian state better than a hundred policy papers. Sarkar’s rigour and unflinching adherence to evidence is what makes it so unsettling. It defies easy pigeonholing in today’s culture wars. Today, when the Mughal past is brandished either as curated nostalgia or unhealed injury, Sarkar offers no anodyne, only the relentless logic of history without anaesthetic.

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