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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.)

People praise Army for protecting

Jammu and Kashmir Chief Minister Omar Abdullah interacts with displaced border residents at a shelter camp.
Jammu and Kashmir Chief Minister Omar Abdullah interacts with displaced border residents at a shelter camp.

Garkhal (J&K): Men and machines of the armed forces worked meticulously to ensure the interception of Kamikaze drones and missiles fired by Pakistani troops targeting Jammu, drawing widespread appreciation from people.


India on Thursday night swiftly thwarted Pakistan's fresh attempts to strike military sites with drones and missiles, including in Jammu and Pathankot, after foiling similar bids at 15 locations across the country's northern and western regions, amid a military conflict between the two neighbours.


Looking after the operational area of Jammu under the command of the 9 Corps, the 26 Infantry Division, nicknamed the "Tiger Division", had put in place a robust air-defence system, virtually carving out an Israel-type Iron Dome to protect Jammu from a Hamas-style attack by Pakistan.


An official who was privy to the developments said it was a meticulous combination of men and machines in defence that thwarted such a massive Pakistani attack.


In the dead of night, Pakistan unleashed its most audacious assault on Jammu since the 1971 war, deploying a swarm of more than a hundred Kamikaze drones and missiles in a sinister attempt to devastate the city. But what followed was a show of unmatched precision, courage and resilience.


"We are indebted to our armed forces who have saved Jammu from a major attack by Pakistan. We appreciate them for their missionary work. We never thought these bombs could be neutralised in the air," Garkhal resident Sikender Singh said.


Singh, whose family, along with more than 500 villagers, has shifted to safer camps set up by the government in Mishriwala on the Jammu outskirts, said had the bombs not been intercepted, they could have caused massive deaths and destruction.


Finest system

The Army, backed by one of the world's finest air-defence systems, intercepted the aerial barrage with astonishing accuracy -- virtually every hostile object was destroyed mid-air. Not a single vital installation was touched. Not a single civilian life was lost.


"Eight missiles from Pakistan were directed at Satwari, Samba, R S Pura and Arnia. All were intercepted and blocked by air-defence units. Visuals over Jammu reminded exactly of a Hamas-style attack on Israel, like multiple cheap rockets," an Army official said.


He said the Pakistan Army is operating and behaving like Hamas. "Drones were sighted at multiple places along the western front -- confirmed to be hostile. They are being effectively engaged by our air-defence systems. Pakistani drone attacks have been reported at various locations along the western borders and are being effectively countered by the Indian armed forces," he added.


The multi-tier air-defence system, with a twin technological security architecture of Russian and Israeli surface-to-air missile setups and the indigenous Akash, was a game changer against such attacks.


Former Jammu and Kashmir director general of police S P Vaid appreciated the armed forces and their technological security systems for effectively dealing with the Pakistani attacks.


He said 50 to 60 air attacks by Pakistan over Jammu and other places were neutralised on Thursday night by the impregnable air-defence system of the country.


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