When Meritocracy Starts to Feel Like Favoritism

At The Workshop, nobody said it aloud. But everyone felt it. It wasn’t a policy. It wasn’t a memo. It was a pattern. The founder, Rohit, had a rhythm … a gravitational pull toward certain people. The ones he brainstormed with, called into client meetings, turned to for “quick feedback”. It didn’t look like favoritism. But it didn’t feel like meritocracy either. And that’s where the distortion begins … not in what leaders intend, but in what teams observe. Two months after the grand town hall,...

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When Meritocracy Starts to Feel Like Favoritism

At The Workshop, nobody said it aloud. But everyone felt it. It wasn’t a policy. It wasn’t a memo. It was a pattern. The founder, Rohit, had a rhythm … a gravitational pull toward certain people. The ones he brainstormed with, called into client meetings, turned to for “quick feedback”. It didn’t look like favoritism. But it didn’t feel like meritocracy either. And that’s where the distortion begins … not in what leaders intend, but in what teams observe. Two months after the grand town hall, the strategy wasn't what people were trying to decode anymore. They were decoding proximity: Who does Rohit trust? Who gets access without asking? Whose mistakes are overlooked? Whose ideas make it to execution? There were no formal rules for this. But everyone was learning them. And Rohit? He had no idea. Because in his mind, he was just moving with speed while leaning on the people who “got it” fastest. But what the team saw was something else: A quiet hierarchy of influence. One built not on titles, but on closeness. That moment It happened during a Friday sprint retro. Aman proposed a workflow change. Bold, unconventional … the kind of idea Rohit usually encouraged. But instead of responding, Rohit turned to Meera: “Let’s hold that thought. Meera, what do you think?” Meera had worked with him the longest. Her judgment was sharp. Trusted. But to everyone else in the room: Aman felt dismissed. The interns updated their playbook: “Run bold ideas through Meera.” The ops lead made a mental note: “Pitch safely, not directly.” Rohit hadn’t intended to promote a gatekeeper. But in that moment, the team had just created one. Favoritism before leaders Because leaders operate from intention. Teams live with impact. Rohit didn’t like Meera more. He simply trusted her process. She could take his half-sentence and turn it into action without much translation. He wasn’t rewarding loyalty. He was rewarding ease. But that distinction doesn’t matter when the team sees the same voices dominate every meeting. Familiarity starts looking like favoritism. And culture quietly reshapes around that perception. Echo chamber Most founders don’t wake up wanting to build echo chambers. They just gravitate … toward the people who mirror their speed, their style, their language. Here’s what happens: The founder starts ideating more with “trusted” voices. Those voices gain unofficial influence. Everyone else speaks less – not from fear, but from futility. Decision quality drops. Alignment fractures. Initiative dies. Before you know it, you’re not building a meritocracy. You’re building a familiarity loop. And in fast-growth companies, loops are sticky. Real case In a national sales team we worked with, the VP insisted decisions were data-driven. Until we ran a blind assessment. A top performer was barely visible. A mid-level player got promoted … not because of results, but because she was always in the VP’s orbit. A high-potential new joiner was overlooked because he didn’t “sound confident”. When we showed the gap, the VP was stunned. What he thought was merit… was actually compatibility. In a factory setup, a supervisor promoted the wrong person for three cycles in a row. Not due to bias. Due to comfort. He chose: The one who never challenged him. The one who echoed his thinking. The one who felt “safe.” Meanwhile, the real performers watched quietly. One line worker summed it up best: “Performance is for the reports. Promotions are for the familiar.” Team effect The damage isn’t instant. It’s cumulative. First, people stop pitching bold ideas. Then, they stop asking questions. Eventually, they stop trying to compete at all. Because the game feels rigged… even if it’s not. And that’s the real cost of the Power Paradox. The leader thinks they’re being objective. The team experiences a hierarchy of trust. Real paradox Founders say, “We’re a meritocracy.” The team replies, “Then why does the same inner circle always win?” They’re not wrong. Neither is the founder. Because power isn’t about what you say. It’s about how often you say it to the same people. And when that circle goes unexamined, it quietly shapes a culture where: Familiarity outruns contribution, access outranks talent, and initiative dies before it begins. Meritocracy is not just what you believe. It’s what your team can see. (Rahul Kulkarni is Co-founder at PPS Consulting. He writes about the human mechanics of growth where systems evolve, and emotions learn to keep up. Views personal. Write to rahul@ppsconsulting.biz)

Behind Every Stock Is A Company

Kaustubh Kale
23h
2 min read

Peter Lynch, one of the greatest fund managers in history, gave investors a timeless reminder:

“Behind every stock is a company. Find out what it’s doing.”

This simple line captures the entire philosophy of sensible investing. Today, when stock prices change every second and social media glorifies quick trading profits, many investors forget the basic truth that a stock is not just a ticker symbol on a screen. It is a real business. When you buy a share, you are buying a slice of that business - its strengths, weaknesses, future potential, and risks.

Unfortunately, too many investors look for shortcuts. They chase “sure-shot tips,” buy stocks trending on social media, and expect overnight returns. But wealth creation in equities has never worked that way. True investors know that long-term wealth is built by understanding businesses, not by predicting short-term price movements. Here are four fundamental principles every investor must remember while investing in stocks:

1. How the industry works

Every industry has its own story. Banks earn money differently from FMCG companies; IT companies grow differently from pharmaceutical companies. Before investing, spend time understanding the sector. What drives growth? Who are the competitors? What are the risks? This knowledge helps set realistic expectations and prevents panic during temporary downturns.

2. Study the company’s business

A company with strong fundamentals and business model can survive tough times and thrive during good periods. Go through annual reports, quarterly results, and investor presentations. Track important financial ratios.

Understanding the business model is equally important. How does the company earn money? Can it grow for the next 10–15 years? Does it have a competitive advantage? These questions help identify companies with long-term potential.

3. Think of it as co-ownership

The biggest mindset shift happens when an investor starts thinking like an owner. If you owned a restaurant, you would not worry about its valuation every minute - you would focus on service, quality, and long-term growth. Similarly, when you buy a stock, treat it like co-owning a business. This perspective automatically encourages patience. You stop reacting to daily volatility and start focusing on fundamentals.

4. Stocks are not lottery tickets

The stock market rewards discipline, not desperation. Quick profits may appear attractive, but they rarely build generational wealth. Compounding works only when you stay invested over long periods. As Warren Buffett says, the stock market is designed to transfer money from the impatient to the patient. Shortcuts, tips, and rumours might give temporary excitement, but they often end in losses. Sustainable wealth is created by investing in solid businesses and allowing time to do its magic. Think like a true investor - not a gambler. Equity investing is not about timing the market. It is about spending time in the market.

(The author is a Chartered Accountant and CFA (USA). Financial Advisor. Views personal. He could be reached on 9833133605.)

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