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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.)

Growing Risks Of Cyber Warfare

Updated: Oct 21, 2024

In a shocking series of events, multiple coordinated explosions have rocked Lebanon and parts of Syria, killing dozens of people and injuring thousands. The blasts occurred after explosive devices, hidden inside pagers and other radio communication devices, were detonated. The targeted individuals were primarily members of Hezbollah, with the explosions taking place in densely populated areas, resulting in widespread injuries to civilians, including children.

The devices, mainly pagers, walkie-talkies, and radios, had been in the possession of Hezbollah operatives, who had acquired them months prior, under the assumption they were secure. However, Hezbollah has accused Israel’s intelligence agency, Shin Bet, of tampering with the devices during transit.

According to security experts, Israel’s elite secret cyber warfare unit was behind the attack. This unit, known for its global cyber operations, is also linked to the creation of the STUXnet malware, which was responsible for the failure of Iran’s nuclear power plant. The pagers were rigged with explosive materials in place of a battery, and a relay switch was installed, allowing the explosions to be triggered remotely in a synchronized manner. The result was devastating injuries to the eyes, face, hands, and legs of those carrying the devices.

The incident occurred in Hezbollah-stronghold areas, including the Dahieh suburb of Beirut, southern Lebanon, and parts of the Beqaa Valley, with some explosions also reported across the border in Syria. The blasts overwhelmed hospitals, as hundreds of victims sought medical help for injuries ranging from severe burns to shattered limbs. The intensity of the explosions, far beyond that of ordinary battery malfunctions, indicates a highly sophisticated sabotage operation.

These explosions have not only deepened the crisis in Lebanon but have also raised critical questions about supply chain security, intelligence tactics, and the legality of using booby-trapped electronics in conflict zones.


What Are Pagers, and Why Are They Still Preferred?

Despite being old-school tele communication technology, pagers or beepers are still used in many countries, particularly in critical sectors and organizations. Pagers primarily facilitate one-way communication, pager uses higher frequencies than car radios i.e. 400 MHz band frequency. It also used a very basic type of VHF spectrum. These devices operate in restricted areas to transfer messages, alerts, and information. These devices are considered more secure and harder to trace or track compared to mobile phones, as they only receive messages, similar to a car radio that receives signals without revealing the listener’s identity or location. Additionally, pagers lack features like Bluetooth or GPS, making them more difficult to hack or compromise.

Among their many advantages, pagers are known for their long battery life and durability, making them ideal for continuous use in specific industries. There are an estimated two million active pager users worldwide. Hezbollah began using pagers after Israel successfully assassinated a high-ranking Hezbollah target by hacking his cellphone and precisely targeting him with a missile. Since then, many Hezbollah members have switched to more primitive communication devices, like pagers, to avoid being tracked via the internet.


Are Mobile Phones and Smartphones Similarly Vulnerable?

American and European security agencies suggest that, theoretically, it is possible to alter mobile phones and other smart devices to turn them into explosive devices. However, practically, it is more difficult due to the advanced security systems in modern smartphones. A hacked smartphone may exhibit various signs, such as abnormal temperature changes, slower system performance, unexpected reboots, odd sounds during calls, hung applications, or irrelevant messages and pop-ups, all of which could indicate tampering. These security systems make it more challenging to modify smartphones in the same manner as simpler devices like pagers.


New Security Challenges

The Hezbollah pager explosion serves as a wake-up call for sectors involving critical infrastructure and aviation. In an era where smartphones are network-connected and can be charged wirelessly, the possibility of tampering with batteries or embedding explosives, like HMX, PETN and other type of plastic explosives pose significant risks. During flights, even a minor explosion could result in catastrophic consequences. On the ground, the threat extends to damaging nearby aircraft, equipment, and infrastructure. Airport security may soon impose stricter regulations, potentially banning pagers, walkie-talkies, and radios, much like power banks, which are now restricted on flights. In the future, mobile phones may only be allowed in switched-off modes, placed in lithium-safe bags during flights. Suspicious devices could be handled separately in Faraday-sheet bags to block any network or signal connections.

This incident highlights the growing risks of cyber warfare and the dangers posed by everyday communication devices being exploited for sabotage. It is an alarming call for a nation’s security as the treat of such critical infrastructure being handled by terrorist organisations can compromise the use of day-to-day electronics for malicious activities. As technology advances, so must the protocols for ensuring public safety, particularly in high-risk environments where even the smallest vulnerability could lead to devastating consequences.

(The writer is an eminent cyber and explosives forensic expert. Views personal.)

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