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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 )

In Defence of Papillon

Updated: Jan 2, 2025

Papillon

It was 1976, or maybe 1977, during a hated French lesson, that Ajay, sitting behind me in class, tapped me on the back and muttered out loud, “How can one man write so much?” I turned to see him holding up a dog-eared and obviously much-read paperback, one of the thickest books I had ever seen. It had a fascinating cover: a butterfly resting on a padlock, above the image the title ‘Papillon’ and the name ‘Henri Charrière.’


At least that was how I remember my first encounter with the book. Maybe it happened that way, maybe it didn’t. Personal memory can be a tricky thing, and literary memoirs more so, more often than not self-serving narratives, full of omissions, evasions, self-deceptions, half-truths, and sometimes downright lies. And Papillon was indeed a memoir, of Henri Charrière’s time in the hellish French penal colony of St Laurent-du-Maroni in French Guiana, South America, where he had been sent never to return after being convicted of murder in 1931 – a murder, he says, he did not commit.


Strangely, I have no memory of where or when I first read Papillon. I expect I borrowed it from a local library. But what an unforgettable book! Written in direct and electrifying prose, the reader is pulled in from the very first page as Henri Charrière begins his 14-year story of incarceration, of the casual brutality of the guards and other prisoners, of the executions, of his refusal to be broken, of his never-diminishing desire to escape, to one day live again as a free man – his story, almost mythic, a thrilling testament to human willpower, endurance, and the desire for freedom.


In 1968, Charrière scrawled Papillon across 13 notebooks in just three months and sent the manuscript to Parisian publisher Robert Laffont. Published the following year, it became an instant phenomenon, selling 1.5 million copies in France and prompting the government to pardon Charrière, allowing him to return from Venezuela to bask in his newfound fame.


But the myth unravelled quickly. Journalists unearthed a far less glamorous truth: Charrière, once a police informant and pimp, had fabricated much of his story. He’d never been held on the infamous Devil’s Island, which housed political prisoners, and his prison record revealed more obedience than escapades. What remains clear is his path to Venezuela in the 1940s, a brief stint in prison, and a quiet life thereafter as a restaurateur, husband, and father.


None of this dimmed Papillon’s brilliance or hindered its success. In 1970, it appeared in English, deftly translated by novelist Patrick O’Brian, later renowned for his Aubrey-Maturin series - and himself an expert in reinvention, often claiming Irish roots he did not possess. The book became Europe’s best-selling title, buoyed by glowing reviews and two film adaptations, in 1973 and 2017. With 13 million copies sold in 30 languages, Papillon endures as a literary phenomenon, hailed by some as the best book they’ve ever read. Charrière, however, did not live long to savor its success, succumbing to throat cancer in 1973.


Years later, the publisher Robert Laffont confessed that Papillon had been pitched as fiction, but he had insisted on marketing it as a memoir. Meanwhile, Charles Brunier, an ex-con with a butterfly tattoo—papillon being French for butterfly—claimed the nickname and much of the story as his own. Others pointed to striking parallels between Papillon and Dry Guillotine, a 1938 bestseller by René Belbenoît, who had served time in the same French Guiana prison system and even crossed paths with Charrière. The line between fact and fiction blurred further, but the legend of Papillon only grew.


As I think back to my own memory of how I first encountered Papillon, my schoolfriend muttering, “How can one man write so much?” – did it really happen that way? Was it really Ajay who first showed me the book? – I do not worry so much. Whether it was Charrière’s own memories or indeed the memories of others that poured out of him like white-hot lava for three months, Papillon remains for me an astonishing and magical book. I am truly glad one man could write so much. It deserves to be on everyone’s bookshelf, dare I say it, alongside The Odyssey, The Ramayana, The Bible, The Lord of the Rings.


(The author is a novelist with an abiding passion for Chinese history)

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