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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 )

The Forgotten Revolt That Hastened the End of the British Raj

Updated: Feb 19, 2025

The Royal Indian Navy Mutiny of 1946 terrified the British into leaving, but was relegated as a footnote in India’s official history.

Forgotten Revolt

On February 18, India marked the 80th anniversary of a momentous but curiously overlooked event - the Royal Indian Navy Mutiny of 1946. While the Quit India Movement of 1942 has long been celebrated as the defining moment of India’s struggle for independence, declassified documents and historical accounts suggest otherwise.


On February 18, 1946, a smouldering rebellion erupted on the decks of HMIS Talwar in Bombay. What began as a protest by Indian sailors against miserable living conditions and racist abuse from their British officers rapidly escalated into a full-scale insurrection. Within days, thousands of naval ratings had seized control of 78 ships, multiple shore establishments and major ports from Karachi to Calcutta. The Royal Indian Navy Mutiny, as it came to be known, marked one of the most dramatic moments in India’s struggle for independence. Yet, it remains curiously absent from mainstream historical narratives.


The absence is not accidental. India’s political establishment at the time had little use for a rebellion that upended the script of a peaceful transfer of power. For the British, the mutiny was a chilling confirmation that their grip on India had collapsed. For the Congress and the Muslim League, which were engaged in delicate negotiations over independence and Partition, the spectre of armed insurrection by Indian soldiers was an unwelcome disruption. The mutineers, despite their heroism, were abandoned by both history and the new Indian state.


The mutiny was ignited by a wave of nationalist sentiment that had swept across the subcontinent in the wake of the Red Fort trials of Indian National Army (INA) officers Prem Sehgal, Gurbaksh Singh Dhillon and Shahnawaz Khan. The British sought to make an example of them, but their trial became a lightning rod for patriotic fervour. Mass protests erupted across India, forcing even the Congress, which had earlier distanced itself from Subhas Chandra Bose and the INA, to change course. Jawaharlal Nehru, eager to align himself with the rising tide of nationalist sentiment, donned his lawyer’s robes to defend the accused.


It was against this backdrop that the naval ratings of HMIS Talwar, fed up with deplorable conditions, took matters into their own hands. When their commanding officer, Frederick King, hurled racial slurs at them, calling them “black bastards” and “coolies,” it was the final straw. Within hours, the mutineers had seized control of their ship, and by the following day, a Naval Central Strike Committee (NCSC) was formed. The rebellion rapidly spread, with thousands of ratings joining in across the country, demanding better pay, equal treatment and an end to colonial rule.


As the mutiny spread, British warships were deployed, but unrest deepened when Mahratta Light Infantry troops refused to fire. In Karachi, sailors seized ships, while a 10,000-strong march, joined by students, workers and the Royal Indian Air Force, turned it into a nationwide uprising.


During Clement Attlee’s 1956 visit to India, the British PM told P.B. Chakraborty, then acting governor of West Bengal, that the ‘Quit India’ movement had only a “minimal” impact on British calculations. What truly unnerved him was the realization that the British could no longer rely on the loyalty of Indian armed forces and faced the horrifying prospect of defending an empire without an army.


Yet, if the mutiny delivered a final blow to British rule, why was it excised from India’s nationalist mythology? The answer lies in its political implications. For the Congress, which had painstakingly built its narrative around non-violent resistance, an armed rebellion by Indian soldiers threatened to undermine its moral authority. A successful naval mutiny would have discredited the Gandhian approach, raising uncomfortable questions about whether India’s freedom had been won by satyagraha or by the mutinous actions of its own military personnel.


For the Muslim League, the mutiny presented an even graver ideological challenge. The rebels’ leadership, like that of the INA officers on trial, reflected the communal unity of Punjab: Madan Singh, M.S. Khan and R.D. Puri. Their example undermined the League’s argument for a separate Muslim state by demonstrating that Hindus, Muslims and Sikhs could fight side by side for a common cause. It is telling that the only major political group to support the mutineers was the Communist Party of India, which had no stake in either Congress’s non-violence or the League’s two-nation theory.


Under pressure from the British, both Congress and the Muslim League called for the rebels to surrender. Assurances were given that they would be reinstated with minimal repercussions. But these promises were broken. Hundreds of ratings were dismissed, arrested and left to languish in Indian prisons long after the British had left. Many spent the rest of their lives in obscurity, betrayed by the very nation they had fought to liberate.


Eighty years later, the mutiny remains a footnote in India’s history books. No grand memorials have been erected in honour of its leaders. No national holiday commemorates its anniversary. It is time to set the record straight. The Royal Indian Navy Mutiny was not a minor incident in India’s freedom struggle but its final battle. The mutineers did not fight for personal gain. They fought for dignity, for justice and for the belief that an India free of colonial rule should be an India free of oppression. Their story deserves to be told and remembered.


(The author is a political commentator and global affairs observer with a keen eye on South Asia’s evolving dynamics. Views personal.)

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